• SC junks tax case vs Benedicto

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    The Supreme Court (SC) decided that the Bureau of Internal Revenue (BIR) could not collect P183.3 million as deficiency income tax for 1990 from the late Marcos crony, former ambassador Roberto S. Benedicto. This is in connection with the $15.6 million allowed by the government to be retained by him as share in the $31.9 million total deposits in his two bank accounts in Switzerland. In a resolution, the SC affirmed the findings of the Court of Tax Appeals (CA) by stating that “if there would be any amount of the Swiss deposits that may be subjected to income tax, the same pertains only to the interest income component of said deposits, for the interest income earned by said Swiss deposits is a gain derived and severed from capital, or a flow of wealth.” The SC argued that 49-percent share of Benedicto in the Swiss deposits are not considered as income since he did not receive any gain from it and that he entered into a compromise with the government.

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