Case of Mr. Domingo Imperial

March 25, 1959 BIR RULING NO. 163-59 3rd Indorsement Returned to the Regional Director, Regional District No. 3, Manila, the herein case of Mr. Domingo Imperial, with the information that by virtue of the amendment to Section 194 of the Tax Code by Republic Act No. 588, Mr. Imperial became subject to the real estate dealer's fixed tax from the fourth quarter of 1950 up to the year 1956. This conclusion is bolstered by the following pronouncement of the Supreme Court: llcd "In the case at bar, plaintiff-appellee is made to pay a license tax from the fourth quarter of 1946 to the third quarter of 1950, the last date being the date when the amending statute, Republic Act No. 588, was passed. This retroactive application of the amending statute would affect the plaintiff-appellee, who would be required to pay a tax which he was not required to pay under the old statute. . . .". (Resolution Domingo Imperial vs. C.I.R., G.R. No. L-7924, Nov. 18, 1955). In this connection, it may be stated that Republic Act No. 588 took effect on September 22, 1950, the date of its approval, and that before the amendment of Section 180 of the Tax Code by Republic Act No. 1612, quarterly payment of the fixed tax was permissible. As regards the period from 1957 to the present, there is no doubt that under Republic Act No. 1612, amending, among others, Section 194 of said Code, Mr. Imperial falls within the definition of the term "real estate dealer" and, therefore, subject to the real estate dealer's fixed tax. The above ruling is premised on the assumption that during the periods from the year 1950 to the year 1956 and from 1957 to 1958, Mr. Imperial realized from his property under lease a gross annual income of not less than P3,000.00 and P4,000.00, respectively. In view thereof, he is requested to cause the assessment and collection of the real estate dealers fixed tax for the years 1950 to 1958. cdll (SGD.) JOSE ARAAS Commissioner of Internal Revenue