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  • CIR V Algue Inc. Digest

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    Patricia Anne Gonzales
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    The Supreme Court ruled that the CIR incorrectly disallowed a deduction claimed by Algue Inc. as a business expense for promotional fees. While taxes are important for funding the government, any collection of taxes must still follow the law and due process to avoid arbitrary exercises of power and ensure taxes promote the common good. The relationship between taxpayers and the government is meant to be symbiotic, with citizens contributing and the government providing benefits in return.

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    tax

    Original Title

    CIR v Algue

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    The Supreme Court ruled that the CIR incorrectly disallowed a deduction claimed by Algue Inc. as a business expense for promotional fees. While taxes are important for funding the government, any collection of taxes must still follow the law and due process to avoid arbitrary exercises of power and ensure taxes promote the common good. The relationship between taxpayers and the government is meant to be symbiotic, with citizens contributing and the government providing benefits in return.

    Copyright:

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

    CIR V Algue Inc. Digest

    Uploaded by

    Patricia Anne Gonzales
    The Supreme Court ruled that the CIR incorrectly disallowed a deduction claimed by Algue Inc. as a business expense for promotional fees. While taxes are important for funding the government, any collection of taxes must still follow the law and due process to avoid arbitrary exercises of power and ensure taxes promote the common good. The relationship between taxpayers and the government is meant to be symbiotic, with citizens contributing and the government providing benefits in return.

    Copyright:

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

    CIR v Algue Inc.

    digest

    The issue in this case is whether the CIR correctly disallowed the deduction
    claimed by Algue as part of its business expenses. The Supreme Court answered in the
    negative. Such deduction for promotional fees from their gross income was valid and
    considered part of the necessary expenses of Algue. The Supreme Court went on to
    discuss that while it is true that taxes are the lifeblood of the government, the collection
    of such taxes should still be made in accordance with law. Due process must still be
    observed. This is because if there is an arbitrary exercise of such power, then it defeats
    the real purpose of taxation, which is the promotion of the common good. Taxes are
    what we pay for a civilized society. Hence, despite the natural reluctance to surrender
    part of one’s hard earned income, every person who is able must still contribute his
    share to the government. The government also is expected to respond in the form of
    benefits, tangible or intangible, creating a symbiotic relationship as a rationale of
    taxation.

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