G.R. No. 25846 , December 24, 1926
JUAN CAMAHORT, plaintiff-appellee, vs. JUAN POSADAS, JR., Collector of Internal Revenue, defendant-appellant.

Ponente: JOHNS, J.

FACTS

Juan Camahort was appointed as an employee/agent of Doña Marcelina O. Viuda de Monasterio under a written power of attorney. From 1918 to 1922, he sold her goods in Manila, acting in her name and for a fixed monthly salary of P300. The total sales amounted to P217,436.74. The merchant’s sales tax on these sales was paid in full by Monasterio, the owner of the goods. The Collector of Internal Revenue, Juan Posadas Jr., assessed and levied fixed merchant’s taxes and a 1% tax on gross sales, plus a surcharge, against Camahort personally, totaling P2,427.96. Camahort paid this under protest and sued for a refund.

ISSUE

Whether Juan Camahort, acting as a salaried agent selling goods owned solely by his principal, is considered a “merchant” under Section 1459 of the Administrative Code of 1917 and is thus liable to pay the percentage tax on the gross sales.

RULING

NO. The Supreme Court affirmed the lower court’s judgment ordering the refund. Camahort was not a “merchant” liable for the sales tax under the law. He acted merely as an agent or legal representative of the owner, Doña Marcelina Monasterio. The goods sold were her exclusive property, and Camahort sold them in her name for a fixed salary, not on commission or consignment. Only one sale occurredthe sale by the principal through her agent. Since the principal had already paid the full merchant’s sales tax on these goods, the government cannot collect a double tax on the same transaction. Camahort’s role was that of a salaried agent, not an independent merchant.