Luzon Stevedoring Company v.

Trinidad
Case No. 154
G.R. No. 18316 (September 23, 1922)
Chapter III, Page 91, Footnote No.71

FACTS:
Plaintiff is a corporation duly organized under the laws of the Philippine Islands, doing business in the City
of Manila. Engaging in a stevedoring business, consisting of loading and unloading of cargo from vessels in ports, at
certain rates of charge per unit of cargo, Plaintiff Company hopes to recover from Defendant, the Internal Revenue
Collector, the sum of P2,422.81, which had been paid under protest. Defendant alleged that during the first quarter
of 1921, the Plaintiff was engaged in business as a contractor, with its gross receipts from the said business
amounting to P242, 281.33. Under the provisions of Sec. 1462 of Act No. 2711, the percentage tax amount was
levied and assessed toward the stevedoring business.

ISSUE:
W/N the Plaintiff is considered a "contractor" provided by Sec. 1462 of Act No.
2711.

HELD:
A contractor is defined as one who renders service in the course of an independent occupation, representing
the will of his employer only as to the result of his work, and not as to the means by which it is accomplished.
Plaintiff is not a "contractor" based on Sec. 1462 of Act No. 2711. Therefore, the tax paid by the Plaintiff was
illegally collected and should be repaid.