Fritz Bryn Anthony M. Delos Santos v. Commissioner of Internal Revenue
G.R. No. 222548
June 22, 2022
Association dues, membership fees, and other assessments or charges are not subject to income tax, Value-Added Tax, and withholding tax.
The CIR gravely abused its authority in issuing Revised Memorandum Circular No. 65, and that in doing so, the Circular did not merely interpret or clarify but changed altogether the long-standing rules of the Bureau of Internal Revenue (BIR).
Here, this Court likewise declared that the CIR gravely abused its discretion in issuing the same Circular and for declaring that association dues, membership fees, and other assessments or charges are subject to income tax, Value-Added Tax, and withholding tax.
This Court reiterated the pronouncement in Yamane v. BA Lepanto Condominium
Corporation, that a condominium corporation is not engaged in trade or business. Association dues are not intended for profit, but for the maintenance of the condominium project. The collection of association dues, membership fees, and other charges is purely for the benefit of the condominium owners.
Whether the petition is already moot and academic.
A case is moot and academic when it loses its justiciability due to a supervening event, which takes away its practical use or value.
This Court cannot render judgment after the issue has already been resolved by or through external developments, and no relief prayed for can be granted or denied. Generally, this Court declines jurisdiction over such cases, except when: First, there is a grave violation of the Constitution; second, the exceptional character of the situation and the paramount public interest is involved; third, when constitutional issue raised requires formulation of controlling principles to guide the bench, the bar, and the public; and fourth, the case is capable of repetition yet evading review.
