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    123 Collector Vs Ust

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    Alan Gultia
    The Court of Tax Appeals (CTA) applied the doctrine of equitable recoupment to allow a taxpayer to offset an overpayment from one tax period against an underpayment from another period. However, the Supreme Court held that this was erroneous. If equitable recoupment was available to both parties, it could tempt the tax collector to delay collecting taxes and the taxpayer to delay filing refund suits, trusting they could offset obligations later through recoupment even if the normal statute of limitations had passed.

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    123 Collector Vs Ust

    Uploaded by

    Alan Gultia
    141 views1 page
    The Court of Tax Appeals (CTA) applied the doctrine of equitable recoupment to allow a taxpayer to offset an overpayment from one tax period against an underpayment from another period. However, the Supreme Court held that this was erroneous. If equitable recoupment was available to both parties, it could tempt the tax collector to delay collecting taxes and the taxpayer to delay filing refund suits, trusting they could offset obligations later through recoupment even if the normal statute of limitations had passed.

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    taxation

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    123 Collector vs Ust

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    The Court of Tax Appeals (CTA) applied the doctrine of equitable recoupment to allow a taxpayer to offset an overpayment from one tax period against an underpayment from another period. However, the Supreme Court held that this was erroneous. If equitable recoupment was available to both parties, it could tempt the tax collector to delay collecting taxes and the taxpayer to delay filing refund suits, trusting they could offset obligations later through recoupment even if the normal statute of limitations had passed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    141 views1 page

    123 Collector Vs Ust

    Uploaded by

    Alan Gultia
    The Court of Tax Appeals (CTA) applied the doctrine of equitable recoupment to allow a taxpayer to offset an overpayment from one tax period against an underpayment from another period. However, the Supreme Court held that this was erroneous. If equitable recoupment was available to both parties, it could tempt the tax collector to delay collecting taxes and the taxpayer to delay filing refund suits, trusting they could offset obligations later through recoupment even if the normal statute of limitations had passed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Collector v.

    UST (1958)

    FACTS:

    On October 17, 1950, UST requested in writing from the respondent the refund of the sum of
    on account of the following: The amount paid by the other departments to the UST Press
    was for the purposes of accounting only and does not legally constitute gross receipts
    subject to the percentage tax The printing and binding of the fall under the exception
    provided for in Section 191 in relation to Section 183(a) of the Tax Code.

    CTA applied the doctrine of equitable recoupment.

    ISSUE:

    W/N THE CTA ERRED IN APPLYING THE DOCTRINE OF EQUITABLE RECOUPMENT IN


    THE CASE?

    Held:

    YES. With this doctrine available and enforceable to both parties, The tax collector would be
    tempted to delay and neglect the collection of taxes within the period set by the law confident
    that when it finally wakes up from its lethargy, it could still recover the tax it failed to collect
    by having it set off or recouped from any tax which it may have illegally collected from the
    same taxpayer

    As regards the taxpayer, he may also be tempted to delay and neglect the filing of the
    corresponding suit for refund of a tax illegally or erroneously collected, trusting that he can
    always recover or be credited with the same or part thereof by refusing to pay a valid tax
    assessed against him and compelling the Government to set-off the same against a tax
    payment he could no longer recover.

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