BA REY nh Digest bys CANEOO, PHALAGYN Le at - BH oe GR No. 196410 November 12, abt§ SM|-€0 PHILIPPINE rectNoL dey ,{NC. ve- OIR eau eee t A fhilipiaes ied an adit tie claim BIR, allging that it _erroneausly paid the amount ——psenting the SL final tox onthe grat sales of ity prperties Lat some of ts_instaled _machinecier aad equipment that they wold __ when they faked _-b_commence__opeen tions. | the BIR fajled act said claim so. SmI-Ed ied 9 1 |__petitten for review befor, he cA. _The_CTA__ Second _Dision denied |___the_claim_,_ instead _astersing ifal_qaine tax onthe gale __! | ___of equipment srackinerits , and building under Section 24 (0)(s)_of ‘ te NRC and feo.2 of RR No- $48. The CT en banc affirmed. Whethte _or_net CTR end _jn__impesing a _G/_oapital gains x under Section _27(0)(s)_of _SIRC a ; fe me subjeckd tp capital gaint che, pestitions c capital osreb. “Capital asses” ic_not any of the _illowing: tihoner | po of Shek _in_tade j_ eee eee ee 2) Property hat should be included in ‘Faxpayer's intatry ot ie eat the taable gear 58) Property held forsale. in the cordinany nurse of oxpoyer’s business ; |__4)__Depeciable property used _in_ the ade or bones j_ ard _ —)__Real_pnptety_ustd_in__thtadlo__or basing sy. _ = |___In_ tis cast, nont__of the _prptedies wea, used in petitions trade ov ordinary course of _toyiness _becawse __pettionse never commenced operations. Teerfor, they are capital assets. oo | Hrmewer, it doesn't mean that theie sales should be subject te |_capital gains tax. Capital ains_of individuals and corporations “fom _the |_sate of eal _pmpucty are taxed differen Hy if Urder_Seckion_24 (0)G)_of IRC, individuals ax taxed on Git} ins tof _pLe wal paperties located inte Philippines ___ | and classified as capita) asset. : = = Gf. Capital gqins rx__are_imposed _ only _on_ ‘the ponmed gain vealited frm the sale of lands and for hil dings. Tre_law dots not impose. or _includt.__machinesits and equipment. Tht fine, only the _presuted gain from _the sale ef _ petitioner's land Ler building may. be __subjeckd_* the 6/1. capital gains ax The__income__fm_the__sale ef potitionte machineries _and__equigm eat is subject — “rhe _prvisins_on_normal_enrpernt_inumt_ ip.