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    Income Tax Topic: Case Number: Case Name:: GR No. 76573 Marubeni Vs CIR

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    John Dexter Fuentes
    Marubeni Corporation, a Japanese company with a Philippine branch office, received dividends from its investment in Atlantic Gulf and Pacific Co. of Manila. The Bureau of Internal Revenue withheld a 10% final dividend tax and an additional 15% profit remittance tax on the remittable amount. Marubeni claims the 15% tax was an overpayment. The Supreme Court ruled that the dividends were not effectively connected to Marubeni's Philippine business operations and therefore not subject to the 15% profit remittance tax imposed on branch profits remitted abroad.

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    Income Tax Topic: Case Number: Case Name:: GR No. 76573 Marubeni Vs CIR

    Uploaded by

    John Dexter Fuentes
    53 views2 pages
    Marubeni Corporation, a Japanese company with a Philippine branch office, received dividends from its investment in Atlantic Gulf and Pacific Co. of Manila. The Bureau of Internal Revenue withheld a 10% final dividend tax and an additional 15% profit remittance tax on the remittable amount. Marubeni claims the 15% tax was an overpayment. The Supreme Court ruled that the dividends were not effectively connected to Marubeni's Philippine business operations and therefore not subject to the 15% profit remittance tax imposed on branch profits remitted abroad.

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    marubeni vs cir

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    Marubeni Corporation, a Japanese company with a Philippine branch office, received dividends from its investment in Atlantic Gulf and Pacific Co. of Manila. The Bureau of Internal Revenue withheld a 10% final dividend tax and an additional 15% profit remittance tax on the remittable amount. Marubeni claims the 15% tax was an overpayment. The Supreme Court ruled that the dividends were not effectively connected to Marubeni's Philippine business operations and therefore not subject to the 15% profit remittance tax imposed on branch profits remitted abroad.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    53 views2 pages

    Income Tax Topic: Case Number: Case Name:: GR No. 76573 Marubeni Vs CIR

    Uploaded by

    John Dexter Fuentes
    Marubeni Corporation, a Japanese company with a Philippine branch office, received dividends from its investment in Atlantic Gulf and Pacific Co. of Manila. The Bureau of Internal Revenue withheld a 10% final dividend tax and an additional 15% profit remittance tax on the remittable amount. Marubeni claims the 15% tax was an overpayment. The Supreme Court ruled that the dividends were not effectively connected to Marubeni's Philippine business operations and therefore not subject to the 15% profit remittance tax imposed on branch profits remitted abroad.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Income Tax

    Topic:
    Case Number : GR No. 76573
    Case Name: Marubeni vs CIR

    FACTS
    Petitioner, Marubeni Corporation, representing itself as a foreign corporation
    duly organized and existing under the laws of Japan and duly licensed to
    engage in business under Philippine laws with branch office at the 4th Floor,
    FEEMI Building, Aduana Street, Intramuros, Manila seeks the reversal of the
    decision of the Court of Tax Appeals dated February 12, 1986 denying its claim
    for refund or tax credit in the amount of P229,424.40 representing alleged
    overpayment of branch profit remittance tax withheld from dividends by
    Atlantic Gulf and Pacific Co. of Manila (AG&P). When the profits on Marubeni’s
    investments in Atlantic Gulf and Pacific Co. of Manila were declared, a 10%
    final dividend tax was withheld from it, and another 15% profit remittance tax
    based on the remittable amount after the final 10% withholding tax were paid
    to the Bureau of Internal Revenue. Marubeni Corp. now claims for a refund or
    tax credit for the amount which it has allegedly overpaid the BIR.

    ISSUE/S

    Whether or not the dividends Marubeni Corporation received from Atlantic Gulf
    and Pacific Co. are effectively connected with its conduct or business in the
    Philippines as to be considered branch profits subject to 15% profit remittance
    tax imposed under Section 24(b)(2) of the National Internal Revenue Code.

    HELD

    NO. Pursuant to Section 24(b)(2) of the Tax Code, as amended, only profits
    remitted abroad by a branch office to its head office which are effectively
    connected with its trade or business in the Philippines are subject to the 15%
    profit remittance tax. The dividends received by Marubeni Corporation from
    Atlantic Gulf and Pacific Co. are not income arising from the business activity
    in which Marubeni Corporation is engaged. Accordingly, said dividends if
    remitted abroad are not considered branch profits for purposes of the 15%
    profit remittance tax imposed by Section 24(b)(2) of the Tax Code, as amended.

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