Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 476 views

    Honda Car Phils vs. Honda Cars Technical Specialist & Supervisors Union

    Uploaded by

    Nej Adunay
    The Supreme Court ruled that a panel of voluntary arbitrators did not have jurisdiction to determine tax matters in a dispute between Honda Cars Philippines and a union representing technical specialists and supervisors. Specifically, the taxability of a gasoline allowance conversion to cash and the withholding of taxes on that amount were issues that fell under the jurisdiction of the Bureau of Internal Revenue, not matters of labor law or contract interpretation that an arbitration panel was empowered to decide. While the allowance was negotiated in a collective bargaining agreement, taxation is an inherent state power and the tax treatment of compensation cannot be altered by private agreement between companies and unions. Any clarification on tax issues must be sought through mechanisms like a tax ruling from the BIR.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Honda Car Phils vs. Honda Cars Technical Specialist & Supervisors Union

    Uploaded by

    Nej Adunay
    476 views1 page
    The Supreme Court ruled that a panel of voluntary arbitrators did not have jurisdiction to determine tax matters in a dispute between Honda Cars Philippines and a union representing technical specialists and supervisors. Specifically, the taxability of a gasoline allowance conversion to cash and the withholding of taxes on that amount were issues that fell under the jurisdiction of the Bureau of Internal Revenue, not matters of labor law or contract interpretation that an arbitration panel was empowered to decide. While the allowance was negotiated in a collective bargaining agreement, taxation is an inherent state power and the tax treatment of compensation cannot be altered by private agreement between companies and unions. Any clarification on tax issues must be sought through mechanisms like a tax ruling from the BIR.

    Original Title

    24. Honda Car Phils vs. Honda cars Technical Specialist & Supervisors Union

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Supreme Court ruled that a panel of voluntary arbitrators did not have jurisdiction to determine tax matters in a dispute between Honda Cars Philippines and a union representing technical specialists and supervisors. Specifically, the taxability of a gasoline allowance conversion to cash and the withholding of taxes on that amount were issues that fell under the jurisdiction of the Bureau of Internal Revenue, not matters of labor law or contract interpretation that an arbitration panel was empowered to decide. While the allowance was negotiated in a collective bargaining agreement, taxation is an inherent state power and the tax treatment of compensation cannot be altered by private agreement between companies and unions. Any clarification on tax issues must be sought through mechanisms like a tax ruling from the BIR.

    Copyright:

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

    Honda Car Phils vs. Honda Cars Technical Specialist & Supervisors Union

    Uploaded by

    Nej Adunay
    The Supreme Court ruled that a panel of voluntary arbitrators did not have jurisdiction to determine tax matters in a dispute between Honda Cars Philippines and a union representing technical specialists and supervisors. Specifically, the taxability of a gasoline allowance conversion to cash and the withholding of taxes on that amount were issues that fell under the jurisdiction of the Bureau of Internal Revenue, not matters of labor law or contract interpretation that an arbitration panel was empowered to decide. While the allowance was negotiated in a collective bargaining agreement, taxation is an inherent state power and the tax treatment of compensation cannot be altered by private agreement between companies and unions. Any clarification on tax issues must be sought through mechanisms like a tax ruling from the BIR.

    Copyright:

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

    Honda Car Phils vs.

    Honda cars Technical Specialist & Supervisors Union


    GR No. 204142, Nov. 19 2014

    Facts:

    On 2006, petitioner Honda Cars Philippines, Inc., (company) and respondent Honda Cars
    Technical Specialists and Supervisory Union, entered into a collective bargaining agreement.
    Prior to April 1, 2005, the union members were receiving a transportation allowance of 3,300.00
    a month. On September 3, 2005, the company and the union entered into a Memorandum of
    Agreement5 (MOA) converting the transportation allowance into a monthly gasoline allowance. It was
    provided, that in the event the amount of gasoline is not fully consumed, the gasoline not used may be
    converted into cash, subject to whatever tax may be applicable. Since the cash conversion is paid in the
    monthly payroll as an excess gas allowance, the company considers the amount as part of the managers’
    and AVPs’ compensation that is subject to income tax on compensation.
    The union, on the other hand, argued that the gasoline allowance for its members is a "negotiated
    item" under their CBA on fringe benefits.
    The disagreement between the company and the union on the matter resulted in a grievance
    which they referred to the CBA grievance procedure for resolution. As it remained unsettled there, they
    submitted the issue to a panel of voluntary arbitrators as required by the CBA.
    The Panel of Voluntary Arbitrators declared that the cash conversion of the unused gasoline
    allowance enjoyed by the members of the union is a fringe benefit subject to the fringe benefit tax, not to
    income tax.

    Issue:
    WON the Voluntary Arbitrator has jurisdiction to settle tax matters

    Ruling:
    No. The Voluntary Arbitrator has no competence to rule on the taxability of the gas allowance
    and on the propriety of the withholding of tax. These issues are clearly tax matters, and do not involve
    labor disputes. To be exact, they involve tax issues within a labor relations setting as they pertain to
    questions of law on the application of Section 33 (A) of the NIRC. They do not require the application of
    the Labor Code or the interpretation of the MOA and/or company personnel policies. Furthermore, the
    company and the union cannot agree or compromise on the taxability of the gas allowance. Taxation is
    the State’s inherent power; its imposition cannot be subject to the will of the parties.
    Under paragraph 1, Section 4 of the NIRC, the CIR shall have the exclusive and original
    jurisdiction to interpret the provisions of the NIRC and other tax laws, subject to review by the Secretary
    of Finance. Consequently, if the company and/or the union desire/s to seek clarification of these issues,
    it/they should have requested for a tax ruling from the Bureau of Internal Revenue (BIR). Any revocation,
    modification or reversal of the CIR’s ruling shall not be given retroactive application if the revocation,
    modification or reversal will be prejudicial to the taxpayers, except in the following cases:
    (a) Where the taxpayer deliberately misstates or omits material facts from his return or any
    document required of him by the BIR;
    (b) Where the facts subsequently gathered by the BIR are materially different from the facts on
    which the ruling is based; or
    (c) Where the taxpayer acted in bad faith.18

    Notes:
    Labor dispute means "any controversy or matter concerning terms and conditions of employment
    or the association or representation of persons in negotiating, fixing, maintaining, changing, or arranging
    the terms and conditions of employment, regardless of whether the disputants stand in the proximate
    relation of employer and employee."16
    The issues raised before the Panel of Voluntary Arbitrators are: (1) whether the cash conversion
    of the gasoline allowance shall be subject to fringe benefit tax or the graduated income tax rate on
    compensation; and (2) whether the company wrongfully withheld income tax on the converted gas
    allowance.

    You might also like