CIR vs WANDER

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Wander - domestic corp

- wholly owned subsidiary of Glaro, Swiss corporation, NETB

1975
Wander
- remitted 220k dividends to Glaro
- 35% (77.7k was withheld and paid to BIR)

1976
- 355k dividencds
- 35% (124.3k withheld)

1977
- Wander claimed for refund and/or tax credit for 115k
- kasi liable lang daw for 15% NOT 35%

CTA - for Wander

- BIR to return 115.4k to Wander as overpayment

ISSUE
1) WON Wander is entitled to 15% preferential rate for dividends remitted to Glaro?

a) WON Wander is proper party to file said refund

b) WON Switzerland allows as tax credit the "deemed paid" 20% PH tax

a)
BIR - Glaro dapat magfile, not Wander
- but this was just raised for the first time in SC
- Wander is agent of gov't and cant claim refund
- SC: NO!!!

b) Switzerland does not impose taxes on divedends received by Swiss corps from non-
Swiss corps
- Wander - dapat nga mas mag apply cause, full credit is granted, not just 20%

- SC - no taxes imposed = full satisfaction of 20% requirement, cause 100% actually