|
Tuesday, July 18, 2006
Tax notes: Pawn tickets subject to stamp tax
The Supreme Court upheld that pawn ticket required to be issued by every pawnshop or pawnbroker at the time of every loan or pledge pursuant to the Pawnshops Regulation Act, as well as the rules of the Bangko Sentral ng Pilipinas is considered a proof of an exercise of a taxable privilege of concluding a contract of pledge thus subject to documentary stamp tax (DST).
(Michel J. Lhuillier Pawnshop, Inc., v. Commissioner of Internal Revenue, GR 166786, May 3, 2006)Section 195 of the Tax Code subjects all pledges to DST.
On the other hand, there is no law specifically and expressly exempting pledges entered into by pawnshops from the payment of DST.
The Pawnshop Regulation Act specifically provides that a pawn ticket is neither a security nor a printed evidence of indebtedness. However, it is not the ticket that creates the pawnshop’s obligation to pay DST but the exercise of the privilege to enter into a contract of pledge.
Hence, pawn tickets require the issuing pawnshop or pawnbroker to pay DST. (Source: Punongbayan & Araullo)
For Bisaya stories from Cebu. Click here. (July 18, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
