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Sun Life Assurance Company of Canada filed a claim for tax credit for allegedly erroneously paid premium tax and documentary stamp tax. The Supreme Court ruled that:
1) Sun Life is a purely cooperative company as it is managed by member-policyholders who elect trustees and is operated using funds from member premiums for mutual protection, not profit.
2) Registration with the Cooperative Development Authority is not required under the Tax Code for cooperative companies like Sun Life to be exempt from premium and documentary stamp taxes. The Court denied Sun Life's petition and affirmed the lower court's decision.
Sun Life Assurance Company of Canada filed a claim for tax credit for allegedly erroneously paid premium tax and documentary stamp tax. The Supreme Court ruled that:
1) Sun Life is a purely cooperative company as it is managed by member-policyholders who elect trustees and is operated using funds from member premiums for mutual protection, not profit.
2) Registration with the Cooperative Development Authority is not required under the Tax Code for cooperative companies like Sun Life to be exempt from premium and documentary stamp taxes. The Court denied Sun Life's petition and affirmed the lower court's decision.
Sun Life Assurance Company of Canada filed a claim for tax credit for allegedly erroneously paid premium tax and documentary stamp tax. The Supreme Court ruled that:
1) Sun Life is a purely cooperative company as it is managed by member-policyholders who elect trustees and is operated using funds from member premiums for mutual protection, not profit.
2) Registration with the Cooperative Development Authority is not required under the Tax Code for cooperative companies like Sun Life to be exempt from premium and documentary stamp taxes. The Court denied Sun Life's petition and affirmed the lower court's decision.
SUNLIFE ASSURANCE COMPANY OF Managed by its members - ownership is vested in
CANADA member-policyholders who are each entitled to vote G.R. NO. 158085 | OCTOBER 14, 2005 and elect from themselves its board of trustees. Operated with money collected from its members - FACTS: member-policyholders constitute both insurer and Sun Life is a Canadian mutual life insurance company registered insured who contribute, by a system of premiums or and authorized to engage in business in the Phils. On Oct. 20, assessments, to the creation of a fund from which all 1997 it filed with the CIR its insurance premium tax and DST losses and liabilities are paid. returns covering the 3rd quarter of 1997 and paid for these taxes. It licensed for the mutual protection of its members, The CTA and SC rendered its decision in the Insular Life case, not for the profit of anyone. “The amount received by holding that mutual life insurance companies are purely members does not partake of the nature of cooperative companies, therefore rexempt from payment of profit/income. [xx] It remains an overpayment, a premium tax and DST. Hence, on Aug 20, 1999 Sun Life filed benefit to which the member-policyholder is equitably with the CIR an administrative claim for tax credit of its allegedly entitled. erroneously paid premium tax and DST. 2. Under the Tax Code, although respondent is a cooperative, For failure of CIR to act on the claim & with the 2-year period registration with the Cooperation Development Authority to file a claim for tax credit/refund about to expire, Sun Life is not necessary for it to claim exemption from payment of filed with the CTA a petition for review, praying for the issuance both percentage taxes on insurance premiums, under Sec. of the tax credit, on the ground that it is a mutual life insurance 121; and DST on policies of insurance or annuities it grants, company vested with all the characteristic features and elements under Sec. 199. of a cooperative company that is exempt from tax under Sec. Tax code does not require such registration (Sec. 8 of 121. RMC No. 48-91 which requires the registration with CDA cannot prevail over the clear absence of an ISSUE: equivalent requirement under the law itself. 1. Whether or not Sunlife is a purely cooperative company Only cooperatives to be formed or organized under the 2. Whether or not registration with the CDA is a sine que non Cooperative Code needed registration with the CDA. It requirement to be entitled to tax exemption was also not required to be registered in the Bureau of Cooperatives Development under PD 175 - the HELD/RATIO: 1. Yes; 2.No predecessor law of the Cooperative Code. Not even the Insurance Code requires registration with 1. The Tax Code defines a cooperative as an association the CDA conducted by the members thereof with the money collectede from among themselves and solely for their own DISPOSITIVE: protection and not for profit. Respondent is a cooperative engages in a mutual life insurance business WHEREFORE, the Petition is hereby DENIED, and the assailed Decision and Resolution are AFFIRMED. No pronouncement as to costs.