CIR v Magsaysay Lines, Inc.; G.R. No. 146984; 28 Jul 2006; 497 SCRA 63
FACTS:Pursuant to a government program of privatization, the National Development Company (NDC) decided to sell to private enterprise all of its shares in its wholly-owned subsidiary, the National Marine Corporation (NMC). It decided to sell in one lot its NMC shares and five (5) of its ships. ISSUE(S):Whether or not the sale by the NDC of five (5) of its vessels to the private respondents is subject to VAT. HELD:NO. VAT is levied only on the sale, barter or exchange of goods or services by persons who engage in such activities, in the course of trade or business. “Course of…