GR 34465; (October, 1931) (Digest)
G.R. No. 34465 ; October 28, 1931
DOROTEO O. RAYMUNDO, plaintiff-appellant, vs. JUAN POSADAS, JR., Collector of Internal Revenue, ET AL., defendants-appellees.
FACTS
Doroteo O. Raymundo, a licensed auctioneer in Manila, conducted auctions of unredeemed pledges for pawnshops. He had no office or regular place of business, did not keep the goods sold, and was paid a daily wage without commission. The goods remained under the pawnshop’s control, and purchase prices were paid directly to the pawnshop. Raymundo paid internal revenue taxes under protest for several quarters in 19281929, claiming he was not a “merchant” liable for the tax under the Administrative Code.
ISSUE
Whether an auctioneer, acting as an agent for pawnshops and paid a daily wage, is a “merchant” subject to the merchants’ tax under section 1459 of the Administrative Code.
RULING
No. The Supreme Court reversed the trial court’s dismissal. An auctioneer is an agent of the merchant, not a merchant himself. Under the Administrative Code, a “merchant” is defined as one engaged in selling, bartering, or exchanging personal property, but explicitly excludes “merchandise brokers.” The Court equated “merchandise broker” with “commercial broker,” which includes auctioneers. Even if not technically a broker, an auctioneer selling as an agent or servant, without bearing profit or loss from sales, does not qualify as a merchant. Thus, Raymundo was not liable for the merchants’ tax and was entitled to a refund of P1,956.41.
AI Generated by Armztrong.