7/24/2019 3. DB Germany vs CIR ( the Incorporation Clause)

1/1

Eileen Eika M. Dela Cruz POLITICAL LAW

G.R. No. 188550 August 28, 2013

Deutsche Bank AG Manila Branch, petitioner

VS.

Commissioner on Internal Revenue, respondent

FACTS:

The petitioner is a branch office in the Philippines of eutsche !an" AG, a corporation organi#e$ an$

e%isting un$er the la&s of the 'e$eral Republic of Ger(an). *n accor$ance &ith +ection 28 A-5- of the

N*R of 1//8, the petitioner &ithhel$ an$ re(itte$ to *R the a(ount of PP ,88,553.5 or the 15

!ranch Profit Re(ittance Ta% on its regular ban"ing unit net inco(e re(itte$ to eutsche !an" Ger(an)

for 2002 an$ t&o prior ta%able )ears.

!elie4ing that it (a$e an o4erpa)(ent of the !PRT, petitioner file$ an a$(inistrati4e clai( for refun$ or

issuance of its ta% cre$it certificate in the a(ount of PP 22 52 851.1. The petitioner then also

reueste$ the *nternational Ta% Affairs i4ision a confir(ation of its entitle(ent to the preferential ta%

rate of 10 un$er the RP6Ger(an) ta% Treat).

ourt of Ta% Appeals $enie$ the petitioner7s clai( for refun$ for the reason of 4iolation of the 156$a)

perio$ (an$ate$ un$er +ec. *** paragraph 2- of the Re4enue e(oran$u( 9r$er No. 162000.

ISS!:

:hether the failure to strictl) co(pl) &ith R9 No. 162002 &ill $epri4e persons or corporations of the

benefit of the ta% treat).

R"I#G:

No.

;n$er +ection 28A-5- of the N*R, an) profit re(itte$ to its hea$ office shall be sub