Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1960 > January 1960 Decisions > G.R. No. L-10854 January 27, 1960 - MANILA POLO CLUB v. BIBIANO L. MEER

106 Phil 885:




PHILIPPINE SUPREME COURT DECISIONS

SECOND DIVISION

[G.R. No. L-10854. January 27, 1960.]

MANILA POLO CLUB, Plaintiff-Appellee, v. BIBIANO L. MEER, ETC., Defendant-Appellant.

Juan T. Chuidian for Appellee.

First Assistant Solicitor General Guillermo E. Torres and Solicitor F. Rosete for Appellant.


SYLLABUS


1. TAXATION; CLUB ORGANIZED, TO PROMOTE SOCIAL INTERCOURSE AMONG ITS MEMBERS; WHEN NOT CONSIDERED A COMMERCIAL CONCERN ALTHOUGH IT OPERATES A BAR AND RESTAURANT. — Where a social club has for its objective the promotion of the game of polo, other athletic sports and outdoor recreations, and to give opportunity for social intercourse to its members, and the establishment of its bar and restaurant is only incidental to it objectives as polo club, it is not a commercial concern, run for profit.

2. ID.; ID.; ID.; EXEMPTION FROM FIXED AND PERCENTAGE TAXES. — A social club which operates a restaurant and bar on the "cost- plus-expenses-basis" method of operation is not considered engaged in business as a keeper of restaurant and bar, and is not therefore subject to the fixed and percentage taxes imposed by Sections 182 and 191 of the National Internal Revenue Code, as amended.


D E C I S I O N


PARAS, J.:


The appellee, a non-stock corporation organized to promote social intercourse among its members, has established within its premises a restaurant and bar which serves food and drinks to its members and their families and friends. In view of the ruling of the appellant exempting the Baguio Country Club from the fixed and percentage taxes imposed under Sections 182 and 191 of the National Internal Revenue Code, as amended, the appellee filed on November 25, 1949, a claim for refund of the percentage taxes amounting to P6,792.60 it paid for the period covering the 4th quarter of 1947 to the 3rd quarter of 1949. Upon denial of the claim, the appellee filed the present action in the Court of First Instance of Manila, which after hearing, ordered that the taxes be refunded. The decision is sought to be reversed by the appellant in this Court.

It is admitted by appellant that appellee is a social club, and that it would be exempt from the payment of the fixed and percentage taxes in question should it be able to prove that the sales in its restaurant and bar were made strictly on the "cost-plus-expenses-basis." By this formula is meant that the appellee should have charged its patrons for only the procurement costs of the food and drink served, plus an amount merely sufficient to cover the expenses for the operation of its bar and restaurant. Since it has been shown that this method of operation had been pursued by the appellee, it cannot be considered as engaged in business as a keeper of restaurant and bar, and is not therefore subject to the fixed and percentage taxes imposed by Sections 182 and 191 of the National Internal Revenue Code, as amended.

Inasmuch as the records also show that appellant admits that the appellee, as a club, has for its objective the promotion of the game of polo, other athletic sports and outdoor recreations, and to give opportunity for social intercourse to its members, and that the establishment or operation of the bar and restaurant is only incidental to the alleged objectives of appellee’s existence as a polo club, we hold that the appellee is not a commercial concern, run for profit. 1

Wherefore, the decision appealed from is affirmed, without costs. So ordered.

Bengzon, Padilla, Montemayor, Bautista Angelo, Labrador, Concepción, Reyes, J. B. L., Endencia, Barrera, and Gutierrez David, JJ., concur.

Endnotes:



1. See also Collector of Internal Revenue v. Manila Lodge No. 761 of the Benevolent & Protective Order of Elks Et. Al., 105 Phil., 983; Collector of Internal Revenue v. Sweeney Et. Al., supra, p. 59.




Back to Home | Back to Main


ClubJuris.Com



January-1960 Jurisprudence                 

  • G.R. No. L-16413 January 26, 1960 - EMILIO C. SANTOS v. COMMISSION ON ELECTIONS

    106 Phil 877

  • G.R. No. L-10854 January 27, 1960 - MANILA POLO CLUB v. BIBIANO L. MEER

    106 Phil 885

  • G.R. Nos. L-12091 & L-12092 January 28, 1960 - PEOPLE OF THE PHIL. v. LIM HO

    106 Phil 887

  • G.R. No. L-9075 January 29, 1960 - S. V. S. PICTURES, INC. v. COURT OF APPEALS

    106 Phil 897

  • G.R. No. L-12476 January 29, 1960 - COLLECTOR OF INTERNAL REVENUE v. ANGLO CALIFORNIA NATIONAL BANK

    106 Phil 903

  • G.R. No. L-12573 January 29, 1960 - PAULINA DURAN v. BERNARDINO PAGARIGAN

    106 Phil 907

  • G.R. Nos. L-12614 & L-12615. January 29, 1960 - JUAN ESTELLA, ET., AL. v. REGISTER OF DEEDS OF RIZAL

    106 Phil 911

  • G.R. No. L-12981 January 29, 1960 - IN RE: MARCIANO DEETUANKA v. REPUBLIC OF THE PHIL.

    106 Phil 916

  • G.R. No. L-13194 January 29, 1960 - BUENAVENTURA T. SALDAÑA v. PHILIPPINE GUARANTY CO., INC.

    106 Phil 919

  • G.R. No. L-13489 January 29, 1960 - BANK OF THE PHILIPPINE ISLANDS v. JOSE J. GONZALES

    106 Phil 925

  • G.R. No. L-13536 January 29, 1960 - ADRIANO VALDEZ v. RODRIGO OCUMEN

    106 Phil 929

  • G.R. No. L-13956 January 29, 1960 - ROMULO C. NICOLAS v. FULGENCIO DACARA

    106 Phil 934

  • G.R. No. L-14027 January 29, 1960 - LIBERTAD ALTAVAS CONLU v. COURT OF APPEALS

    106 Phil 940

  • G.R. No. L-14306 January 29, 1960 - PABLO CALION v. PEOPLE OF THE PHIL.

    106 Phil 943

  • G.R. No. L-14341 January 29, 1960 - MARCIANO SONGAHID v. BENITO CINCO

    106 Phil 946

  • G.R. No. L-14359 January 29, 1960 - IN RE: SALVADORA ONG v. REPUBLIC OF THE PHIL.

    106 Phil 950

  • G.R. No. L-16360 January 29, 1960 - FILEMON SALCEDO, JR. v. COMMISSION ON ELECTIONS

    106 Phil 953

  • G.R. No. L-6406 January 30, 1960 - PEOPLE OF THE PHIL. v. KUSAIN SAIK

    106 Phil 957

  • G.R. No. L-9483 January 30, 1960 - PEOPLE OF THE PHIL. v. ELIAS NANA

    106 Phil 966

  • G.R. No. L-11215 January 30, 1960 - PEOPLE OF THE PHIL. v. QUIRINO BALOYO

    106 Phil 972

  • G.R. No. L-11430 January 30, 1960 - PEOPLE OF THE PHIL. v. TOMAS ESTACIO

    106 Phil 981

  • G.R. No. L-11756 January 30, 1960 - JOSE B. GAMBOA v. MA- AO SUGAR CENTRAL CO., INC.

    106 Phil 989

  • G.R. No. L-11908 January 30, 1960 - FLORA CAMPANERO v. APOLONIO T. COLOMA

    106 Phil 993

  • G.R. No. L-12105 January 30, 1960 - TESTATE ESTATE OF C. O. BOHANAN v. MAGDALENA C. BOHANAN

    106 Phil 997

  • G.R. No. L-12280 January 30, 1960 - PEOPLE OF THE PHIL. v. PIO TEMPLONUEVO

    106 Phil 1003

  • G.R. No. L-12661 January 30, 1960 - PEOPLE OF THE PHIL. v. FRANCISCO ARANDA

    106 Phil 1008

  • G.R. No. L-12692 January 30, 1960 - COSMIC LUMBER COMPANY, INC. v. AGAPITA MANAOIS

    106 Phil 1015

  • G.R. No. L-12754 January 30, 1960 - ESTANISLAO ALFONSO v. PASAY CITY

    106 Phil 1017

  • G.R. No. L-13146 January 30, 1960 - VALENTIN CASTILLO v. ARTURO SAMONTE

    106 Phil 1023

  • G.R. No. L-13160 January 30, 1960 - BIENVENIDO NERA v. PAULINO GARCIA

    106 Phil 1031

  • G.R. No. L-13274 January 30, 1960 - REMEDIOS SACLOLO v. COURT OF AGRARIAN RELATIONS

    106 Phil 1038

  • G.R. No. L-13399 January 30, 1960 - ALBERTA VICENCIO v. GAVINO TUMALAD

    106 Phil 1042

  • G.R. No. L-13456 January 30, 1960 - IRINEO C. HAMOY v. SECRETARY OF AGRICULTURE

    106 Phil 1046

  • G.R. No. L-13488 January 30, 1960 - MAURO PRIETO v. HIGINIO B. MACADAEG

    106 Phil 1055

  • G.R. No. L-13551 January 30, 1960 - CONSTANCIO JOAQUIN v. ABUNDIO MADRID

    106 Phil 1060

  • G.R. No. L-13564 January 30, 1960 - ANDRES CENTENERA v. NICASIO YATCO

    106 Phil 1064

  • G.R. No. L-13764 January 30, 1960 - RAFAEL RUEDA v. MARCELO JUAN

    106 Phil 1069

  • G.R. No. L-13781 January 30, 1960 - Testate Estate of JOSE J. JAVELLANA v. JOSE JAVELLANA

    106 Phil 1073

  • G.R. No. L-14016 January 30, 1960 - ALFREDO FORMOSO v. DELFIN S. FLORES

    106 Phil 1079

  • G.R. Nos. L-14023 & L-14135 January 30, 1960 - TALISAY-SILAY MILLING CO., INC. v. COURT OF INDUSTRIAL RELATIONS

    106 Phil 1081

  • G.R. No. L-14047 January 30, 1960 - PRIMO PANTI v. PROVINCIAL BOARD OF CATANDUANES

    106 Phil 1093

  • G.R. No. L-14109 January 30, 1960 - NATIONAL LUMBER & HARDWARE CO. v. PEDRO J. VELASCO

    106 Phil 1099

  • G.R. No. L-14310 January 30, 1960 - MAURO PRIETO v. JUAN P. ENRIQUEZ

    106 Phil 1103

  • G.R. No. L-14327 January 30, 1960 - PEOPLE OF THE PHIL. v. BERNARDO BORJA

    106 Phil 1111

  • G.R. No. L-14373 January 30, 1960 - GENERAL INSURANCE & SURETY CORP. v. NG HUA

    106 Phil 1117

  • G.R. No. L-14375 January 30, 1960 - ANDRES CASTILLO v. FROILAN BAYONA

    106 Phil 1121

  • G.R. No. L-14535 January 30, 1960 - BENITO SYMACO v. PATERIO AQUINO

    106 Phil 1130

  • G.R. No. L-14674 January 30, 1960 - MELECIO R. DOMINGO v. JUDGE S. C. MOSCOSO

    106 Phil 1138

  • G.R. No. L-16286 January 30, 1960 - CESAR SAMSON v. NUMERIANO G. ESTENZO

    106 Phil 1140