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    Vegetable Corp. V Trinidad

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    Lou
    The Vegetable Oil Corporation paid merchants' percentage taxes under protest on copra consignments to its mills in the US for vegetable oil manufacture and sale. The Court ruled the taxes were properly assessed and collected, as a consignment of goods abroad is taxable under the statute. Though the Vegetable Oil Corporation did not engage in sale, barter, or exchange in the Philippines, as consignor it was responsible for the taxes due on the consignments. The consignment tax is not a sales tax but rather assessed on the gross value of goods consigned abroad by merchants. The Court reversed the lower court's judgment.

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    Vegetable Corp. V Trinidad

    Uploaded by

    Lou
    120 views1 page
    The Vegetable Oil Corporation paid merchants' percentage taxes under protest on copra consignments to its mills in the US for vegetable oil manufacture and sale. The Court ruled the taxes were properly assessed and collected, as a consignment of goods abroad is taxable under the statute. Though the Vegetable Oil Corporation did not engage in sale, barter, or exchange in the Philippines, as consignor it was responsible for the taxes due on the consignments. The consignment tax is not a sales tax but rather assessed on the gross value of goods consigned abroad by merchants. The Court reversed the lower court's judgment.

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    tax digest

    Original Title

    28. Vegetable Corp. v Trinidad

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    The Vegetable Oil Corporation paid merchants' percentage taxes under protest on copra consignments to its mills in the US for vegetable oil manufacture and sale. The Court ruled the taxes were properly assessed and collected, as a consignment of goods abroad is taxable under the statute. Though the Vegetable Oil Corporation did not engage in sale, barter, or exchange in the Philippines, as consignor it was responsible for the taxes due on the consignments. The consignment tax is not a sales tax but rather assessed on the gross value of goods consigned abroad by merchants. The Court reversed the lower court's judgment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    120 views1 page

    Vegetable Corp. V Trinidad

    Uploaded by

    Lou
    The Vegetable Oil Corporation paid merchants' percentage taxes under protest on copra consignments to its mills in the US for vegetable oil manufacture and sale. The Court ruled the taxes were properly assessed and collected, as a consignment of goods abroad is taxable under the statute. Though the Vegetable Oil Corporation did not engage in sale, barter, or exchange in the Philippines, as consignor it was responsible for the taxes due on the consignments. The consignment tax is not a sales tax but rather assessed on the gross value of goods consigned abroad by merchants. The Court reversed the lower court's judgment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Vegetable Oil Corporation v Winceslao Trinidad

    G.R. No. 21475


    March 26, 1924
    FACTS:

     This action is brought to recover back merchants’ percentage taxes to the amount of
    P19,975.70 levied on consignments under section 1459 of Act No. 2711 and paid by the
    plaintiff under protest, which states: All merchants not herein specifically exempted shall
    pay a tax of one per centum on the gross value in money of the commodities, goods,
    wares, and merchandise sold, bartered, exchanged, or consigned abroad by them, such
    tax to be based on the actual selling price or value of the things in question at the time
    they are disposed of or consigned, whether consisting of raw material or of
    manufactured or partially manufactured products, and whether of domestic or foreign
    origin. Xxx “Merchant,” as here used, means a person engaged in the sale, barter, or
    exchange of personal property of whatever character.

     Plaintiff is engaged in the purchase of copra and shipment of such copra to its mills in
    the US for manufacture of vegetable oil, to be sold there. In three occasions, the
    defendant demanded a tax under the said statute, which was paid by plaintiff under
    protest.

    ISSUE: Whether it was proper to issue the merchants’ percentage tax on plaintiff?

    RULING:
    Yes. A consignment of goods is otherwise taxable, the tax should be assessed and collected
    regardless of the personality of the consignor or consignee. A shipment of goods abroad is no
    less taxable under this section, through consigned to the order of the shipper himself. He has
    acted throughout as agent, and it is to be assumed, in the absence of proof to the contrary, that
    the money which went into the public coffers belonged to his principal. Besides, as consignor of
    the exported product, the plaintiff was apparently the person directly responsible to the Collector
    for the taxes due on the several consignments.

    In the present case it is not disputed that the plaintiff corporation was the consignor of the
    merchandise, but it is strenuously argued that inasmuch as it is not “engaged in the sale, barter,
    or exchanged of personal property” in the Philippine Islands, it is not a merchant within the
    statutory definition of the term and therefore cannot be required to pay the consignment tax.
    However, the statute itself does not provide that the sale, barter, or exchange must take place in
    the Philippine Islands in order to make a person engaged in such business a merchant.
    The consignment tax is not a sales tax. The fact that it is provided for in the same section as the
    sales tax does not necessarily make it so.

    DISPOSITIVE: Judgement appealed from is REVERSED.

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