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National Capital Region (NCR)
Court junks liquor makers' bid to halt increase in excise taxes
MANILA - A local court on January 16 denied liquor makers' bid to halt the implementation of rules raising excise taxes on distilled spirits, the Bureau of Internal Revenue (BIR) said on Thursday.
In a statement, the BIR said the regional trial court (RTC) in the National Capital Region (NCR) denied a petition for a temporary restraining order (TRO) filed by the Distilled Spirits Association of the Philippines, Destileria Limtuaco & Co, Emperador Distillers Inc and Tanduay Distillers.
The BIR said the court backed the bureau's arguments and denied the petition for a TRO on two grounds:
- The absence of court authority to issue injunctions to restrain the collection of taxes; and
- The absence of the petitioners’ clear legal right to be protected over the right of the state to collect taxes.
The RTC said courts do not have authority to grant an injunction or TRO to restrain the collection of taxes as provided under Section 218 of the National Internal Revenue Code (NIRC).
A preliminary injunction or TRO may be issued only in the existence of a clear and unmistakable right to be protected, and an urgent necessity to prevent serious damages, the court said.
The petitioners claimed that the sale of alcoholic beverages may be considered a property right, citing the constitutional provision on the protection of life, liberty, and property.
But the court countered that the taxpayers’ property right should take a back seat in favor of the state’s “paramount” need to generate funds to sustain its functions.
The petitioners also contended that they would suffer “irreparable” damage if the implementation were to take place, referring to Section 12 (c) of Revenue Regulations No. 17-2012.
"The BIR stands by its position which the court has affirmed. The petitioners will not incur irreparable damages if the law is implemented,“ BIR Commissioner Kim Jacinto-Henares
Court junks liquor makers' bid to halt increase in excise taxes
MANILA - A local court on January 16 denied liquor makers' bid to halt the implementation of rules raising excise taxes on distilled spirits, the Bureau of Internal Revenue (BIR) said on Thursday.
In a statement, the BIR said the regional trial court (RTC) in the National Capital Region (NCR) denied a petition for a temporary restraining order (TRO) filed by the Distilled Spirits Association of the Philippines, Destileria Limtuaco & Co, Emperador Distillers Inc and Tanduay Distillers.
The BIR said the court backed the bureau's arguments and denied the petition for a TRO on two grounds:
- The absence of court authority to issue injunctions to restrain the collection of taxes; and
- The absence of the petitioners’ clear legal right to be protected over the right of the state to collect taxes.
The RTC said courts do not have authority to grant an injunction or TRO to restrain the collection of taxes as provided under Section 218 of the National Internal Revenue Code (NIRC).
A preliminary injunction or TRO may be issued only in the existence of a clear and unmistakable right to be protected, and an urgent necessity to prevent serious damages, the court said.
The petitioners claimed that the sale of alcoholic beverages may be considered a property right, citing the constitutional provision on the protection of life, liberty, and property.
But the court countered that the taxpayers’ property right should take a back seat in favor of the state’s “paramount” need to generate funds to sustain its functions.
The petitioners also contended that they would suffer “irreparable” damage if the implementation were to take place, referring to Section 12 (c) of Revenue Regulations No. 17-2012.
"The BIR stands by its position which the court has affirmed. The petitioners will not incur irreparable damages if the law is implemented,“ BIR Commissioner Kim Jacinto-Henares