8/10/2019 First Lepanto

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G.R. No. 197117. April 10, 2013.*

FIRST LEPANTO TAISHO INSURANCE CORPORATION, p!i!io"r, #$.

CO%%ISSIONER OF INTERNAL RE&ENUE, r$po"'"!.

Facts: First Lepanto Taisho Insurance Corporation (petitioner) is a Large Taxpayer underRevenue Regulations No !"#$% as a&ended The Co&&issioner o' Internal Revenue(respondent) sent a Letter o' uthority to petitioner to exa&ine their oo*s o' account'or the year +,,- and other unveri'ied years .n /ece&er 0,% +,,,% the respondentissued tax assess&ents 'or de'iciency inco&e% 1ithholding% expanded 1ithholding% 'inal1ithholding% value"added% and docu&entary taxes 'or the year +,,- The petitionerprotested such assess&ent% 1hich it partially 1ithdre1 in vie1 o' the tax a&nestyprogra&it had availed The CT ordered the petitioner to pay 2 +%,,3%4,5#! as de'iciency1ithholding tax on co&pensation% expanded 1ithholding tax% and 'inal tax The petitionerappealed to the CT 6n 7anc 1hich a''ir&ed the decision o' the CT /ivisionThe CT re8ected the contention o' the petitioner that it is not liale to pay 1ithholdingtaxon co&pensation to so&e o' its directors since they 1ere not e&ployees and they hadalready een su8ected to expanded 1ithholding tax s to the petitioner9stransportation%susistence and lodging% and representation allo1ance% the CT 6n 7anc ruled that thepetitioner 'ailed to prove that those 1ere actual expenses s to de'iciency expanded1ithholding taxes on co&pensation% petitioner 'ailed to sustantiate that theco&&issionsearned ca&e 'ro& reinsurance activities and should not e su8ect to 1ithholding tax

s tode'iciency 'inal 1ithholding taxes% petitioner 'ailed to present proo' o' re&ittance toestalish that it had re&itted the 'inal tax on dividends paid as 1ell as the pay&ents 'orservices rendered y a alaysian co&pany s to the i&position o' delin;uency interest%records reveal that petitioner 'ailed to pay the de'iciency taxes 1ithin thirty (45) days'ro&receipt o' the de&and letter% thus% delin;uency interest accrued 'ro& such non"pay&ent

IssueIs the petitioner liale 'or the:

a de'iciency 1ithholding taxes on co&pensation on directors9 onuses< de'iciency expanded 1ithholding taxes on transportation% susistence and lodging%and representation expense< co&&ission expense< direct loss expense< occupancycost< and service=contractor and purchases