DIV 3 2011 Cases

8/14/2019 DIV 3 2011 Cases

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8/14/2019 DIV 3 2011 Cases


Date Promulgated: Jan 4; 2011Toi!: Reund o* Issuane o Ta6 C*edit Ce*tiiate

"ACTS:

8n Jul" 200(; PAL ente*ed into a Ca*te* Ag*ee,ent %it 8))A to t*anspo*t2.. passenge*s *o, Manila to +ango; and $a to Manila o* te ont*at

p*ie o Pp 1(;411;00

PAL issued 2 invoies o* te ollo%ing values91> Pp 1(;411;002> Pp 121;2.

+ot invoies %e*e paid $" 8))A %it te ollo%ing dedutions92? C*edita$le Ino,e Ta6 @ Pp 330;(>7.? &inal AT @ Pp .2(;(3>4

Pp 1;37;43>77

In eet; It paid a total o Pp 1;37;43>77

Initiall"; PAL t*ied to *eove* te ? inal AT *o, 8))A> 8))A *eused topa" $eause te sa,e %as al*ead" *e,itted to te +IR

8n Aug 200.; PAL iled %it te oie o te CIR a %*itten *e=uest o* a*eund o Pp .(2;(3>4; *ep*esenting te ? &inal AT %iteld $" te8ve*seas )o*e*s )ela*e Ad,inist*ation B8))A *o, Pp 1(;32;7.$illed $" PAL to 8)) unde* its Ca*te* Ag*ee,ent>

In vie% o CIRDs ination; PAL iled :udiial lai, o* *eund %it CTA>

PAL#s Contention:

PAL is a AT *egiste*ed a**ie*; su$:et to /e*o pe*ent B0? AT; unde*Setion 10. B+B( #IRC

It e**oneousl" paid te total a,ount o Pp .2(;(3>4; *ep*esenting te ?&inal AT %iteld $" 8))A; te*eo*e; te said a,ount sould $e *eundedto it

CIR#s Contention: PAL is not entitled to te *eund o te alleged unapplied*edita$le ino,e ta6 %iteld $eause petitione* PAL ailed to p*ove teollo%ing9

a> tat te *edita$le %itolding ta6 a,ounting to Pp .2(;(3>4 isdul" suppo*ted $" valid Ce*tiiate o C*edita$le Ta6 )iteld at Sou*e

$> tat te allegedl" %iteld ta6es %e*e atuall" *e,itted to te +IR> tat PAL ailed to disa*ge its $u*den o p*oving its entitle,ent to a

*eund> Clai,s o* *eund a*e onst*ued st*itl" against te lai,ant o*te sa,e pa*tae te natu*e o e6e,ption o*, ta6ation>

ISS$E:)ete* o* not PAL is entitled to te *eund o Pp .2(;(3>4; *ep*esentingte ? inal AT %iteld $" 8))A unde* tei* Ca*te* Ag*ee,ent

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DECISI%N:Cou*t *uled in avo* o petitione* PAL

CIR is o*de*ed to *eund o* to issue a ta6 *edit e*tiiate in avo* o PAL inte total a,ount o Pp .2(;(3>4>

HELD:

Pu*suant to Setion 10. B+ o #IRC1 and Setion 4>10.- o RevenueRegulations #o> 1(-2002; te t*anspo*t o passenge*s $" a do,esti ai*a**ie* is a t*ansation su$:et to /e*o-pe*ent B0? AT *ate> Te 2p*es*i$ed *e=uisites a*e9 B1 tat te do,esti a**ie* is a AT-*egiste*edpe*sonE and B2 tat t*anspo*t o passenge*s andFo* a*go is *o, tePilippines to a o*eign ount*"

Te Cou*t ound tat PAL o,plied %it te *e=ui*e,ents> As *ega*ds te 1 st

*e=uisite; PAL oe*ed in evidene its Ce*tiiates o Regist*ation %it te +IRLa*ge Ta6pa"e*s !ivision> As *ega*ds te 2nd *e=uisite; PAL p*esented itsCa*te* Ag*ee,ent %it 8))A to p*ove tat te t*ansation $et%een PALand 8))A involved t*anspo*t o passenge*s *o, te Pilippines to a o*eign

ount*">

PALDs t*ansation %it 8))A is su$:et to /e*o-*ated sale o se*vies>&u*te*; PAL is not lia$le to pa" te %itolding ta6 on te said t*ansation>PAL as ull" su$stantiated its lai, tat te e**oneousl" %iteld Pp.2(;(3>4 %as atuall" *e,itted $" 8))A to CIR $" p*esenting teCe*tiiate o &inal Ta6 )iteld at Sou*e and a op" o te Montl"Re,ittane Retu*n o AT and te Annual Ino*,ation Retu*n o C*edita$leIno,e Ta6es )iteld o* 200(>

nde* te p*iniple o solution inde$iti; +IR as te o$ligation to *eund teta6es %i it as no *igt to *eeive>

SAN &I'$EL v CIR

Ponente: +autista

Date Promulgated: Janua*" 7; 2011

1 Section 108. Value-added Tax on Sale of Services and Use or Lease of Properties –

(! xxx xxx

("! Transactions Su#$ect to %ero Percent (0&! 'ate – Te follo)in* services perfor+ed in te Pilippines #, VT

re*istered persons sall #e su#$ect to ero percent (0&! rate

xxx xxxxxx xxx

(/! Transport of passen*ers and car*o #, air or sea vessels fro+ te Pilippines to a

forei*n countr,.

xxx xxx.2 Section .108-. %ero-'ated Sale of Services –

xxx xxx

(#! Transactions Su#$ect to %ero Percent (0&! VT 'ate.

3xx xxx(/! Transport of passen*ers and car*o #, do+estic air or sea carriers fro+ te Pilippines to a forei*n countr, 4.

5ross receipts of international air carriers doin* #usiness in te Pilippines and international sea carriers doin*

#usiness in te Pilippines are still lia#le to a percenta*e tax of tree percent (6&! #ased on teir

*ross receipts as provided or in Section 118 of te Tax 7ode #ut sall not #e lia#le to VT.

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Toi!: Reund o* Issuane o Ta6 C*edit Ce*tiiate

"ACTS9Petitione*; San Miguel Co*p BSMC; t*oug M* i*gilio de 'u/,an BAssistantie P*esident G &inane %*ote to +IR *e=uesting o* te *egist*ation o; andauto*it" to ,anuatu*e HSan Mig Ligt to $e ta6ed at Pp 12>1 pe* lite*>+IR g*anted te *e=uest

M* de 'u/,an advised +IR tat San Mig Ligt %ill $e sold at Pp 21>1; o*Pp (>. pe* $ottle; less value-added ta6 BAT and speii ta6; to $e ta6edat Pp >1 pe* lite*>

M* Al*edo illao*te BSMC P and Manage* o te '*oup Ta6 Se*vies; %*oteto te La*ge Ta6pa"e*s Assistane !ivision II BLTA! II o +IR; *e=uesting o*ino*,ation on te ta6 *ate and lassiiation o San Mig Ligt and anote*$ee* p*odut - 'old <agle ing>

M* Cond*ad Ite, BCie o LTA! II; *eplied tat San Miguel is allo%ed to*egiste*; ,anuatu*e; and sell San Mig Ligt and its lassiiation and *ate asa ne% $*and a*e in o*de*>

Asst Co,,issione* <d%in A$ella o La*ge Ta6pa"e*s Se*vie BLTS issued a#otie o !is*epan" against San Miguel; stating tat San Mig Ligt is ava*iant o te o,pan"Ds e6isting $ee* p*oduts; o* tis *eason; it %assu$:eted to a ige* e6ise ta6 *ate

M* +ienvenido +anas BSMC &inane Manage* *e=uested o* te %itd*a%al ote #otie o !is*epan"

Assistant Co,,issione* A$ella sent its lette*-*e:oinde* to SMC; stating tatSan Mig Ligt is t*ul" a va*iant o San Miguel Pale Pilsen

M*> illao*te BSMC P and Manage* o te '*oup Ta6 Se*vies; %*ote toAssistant Co,, A$ella *e=uesting tat San Mig Ligt $e *eoni*,ed as ane% $*and and tat te deiien" assess,ent $e set aside and de,and o*pa",ent $e %itd*a%n>

Co,,issione* 'uille*,o Pa*a"no issued a lette* to SMC sa"ing tat San MigLigt is a va*iant o San Miguel Pale Pilsen and tat an assess,ent o*deiient e6ise ta6 is o*to,ing>

A P*eli,ina*" Assess,ent #otie BPA# against SMC %as issued in te

a,ount o Pp .2;03;41.>1; allegedl" *ep*esenting deiien" e6ise ta6o* te pe*iod ove*ing 1 to Janua*" 2004; iting tat San Mig Ligt is ava*iant o te e6isting $ee* p*oduts o SMC

Te*eate*; LTS issued a #otie o !is*epan" against SMC in te a,ount oPp 2.; .7(;10.>.4 inluding inte*est o* te pe*iod ove*ing Jan .-2 2004>

Anote* PA# %as issued against SMS Pp 2.; .7(;10.>.4 o* te pe*iodove*ing Jan .-2 2004>

8/14/2019 DIV 3 2011 Cases


A &o*,al Lette*s o !e,and %e*e issued %it attaed Assess,ent #otie*e=uesting SMC to pa" te deiien" e6ise ta6 assess,ent in te total oPp .2;03;41.>1 Bpe*iod ove*ing 1- Jan 7; 2004 and anote* o* Pp.2;03;41.>1> SMC iled a P*otestFRe=uest o* Reonside*ation on teLette*s o !e,and>

LTS denied te P*otestFRe=uest o* Reonside*ation o* la o legal and

atual $asis> SMC iled %it Cou*t o Ta6 Appeal BCTA; Petitions o* Revie%*o, te +IR Rulings>

SMC iled its i*st lai, o* *eund o te a,ount o Pp 7.2;23.;1(1>47 %itte +IR> Ten; SMC iled a Petition o* Revie% on its i*st lai, o* *eund>

&*o, !e 200-!e 200( and Jan 2007-Jul"2007; SMC %as o$liged toontinue pa"ing e6ise ta6es at te in*eased *ates>

SMC iled its 2nd lai, o* *eund %it te +IR in te a,ount o Pp2(;3.;172>02> !ue to te ination o CIR on tis lai,; SMC iled anote*Petition o* Revie%

S&C#s C%NTENTI%N9SMC is entitled to *eund as San Mig Ligt is a ne% $*and and not a ,e*eva*iant o San Miguel Pale Pilsen>

CIR#s C%NTENTI%N: SMC is estopped *o, =uestioning te lassiiation o San ,ig Ligt asva*iant o San Miguel Pale Pilsen

ISS$ES: B1 )ete* SMC is entitled to a *eund in te a,ount o Pp2(;3.;172>02 as onse=uene o its *elassiiation

DECISI%N:Ruled in avo* o SMC8*de*ed CIR to *eund o* issue a ta6 *edit e*tiiate in avo* o SMC in tea,ount o Pp 2(;1(;0(>74 *ep*esenting e**oneousl" olleted andove*paid e6ise ta6es on San Mig Ligt du*ing te pe*iod o !e 1 200 up to

Jul" 2007

HELD: 5es> SMC is entitled to *eund>

$nder RR No *+, $nder RA No +--.#e% +*and A $*and *egiste*ed ate* Jan

1;17 and sall inludep*eviousl" *egiste*ed $utinative $*ands o aloolp*oduts

A $*and *egiste*ed ate* te

date o eetivit" o RA.2403

a*iant o +*and A $*and on %i a ,odiie* isp*ei6ed andFo* sui6ed to te*oot na,e o te $*and andFo* adie*ent $*and %i a**ies

A $*and on %i a ,odiie*is p*ei6ed andFo* sui6ed tote *oot na,e o te $*and

6 a+e of la)

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T%TAL vs CIR

Ponente: Palana-<n*i=ue/Date Promulgated: Janua*" 13; 2011Toi!: Reund o* Issuane o Ta6 C*edit Ce*tiiate

"ACTS: Total iled %it +8R its 8*iginal ua*te*l" AT Retu*ns o* te 1st and 2nd

=ua*te*s o 2007> It iled A,ended ua*te*l" AT Retu*ns *eleting TotalDsvata$le sales; /e*o-*ated sales; do,esti pu*ases o non-apital; andse*vies>

&o* te 1st and 2nd =ua*te*s o 2007; Total inu**ed unutili/ed input AT*edits *o, its do,esti pu*ases o non-apital goods and se*vies in tetotal o Pp .;124;400;3> 8ut o tis au,ulated input AT; te a,ount oPp 7;..;433>. is te e6ess o* unutili/ed input AT o* te =ua*te*s o2007>

Total iled an ad,inist*ative lai, o* *eund and su$,itted suppo*tingdou,ents to te +IR> +eause o +IRDs ination; Total iled its :udiial lai,o* *eund %it Cou*t o Ta6 Appeal BCTA

Piliinas Total#s Contention9 Total is entitled to a *eund

CIR#s Contention: TotalDs lai, o *eund is su$:et to ad,inist*ative *outineinvestigation $" te +IR> A lai, o *eund is not ipso ato g*anted $eausete CIR still as to investigate te ve*ait" o lai,

ISS$E: )ete* o no* Total is entitled to a *eund o* issuane o TCC in te a,ounto Pp 7;..;433>. *ep*esenting its e6ess and unutili/ed input AT o* te1st and 2nd =ua*te*s o 2007 on its do,esti pu*ases o non-apital goodsand se*vies

DECISI%N: #o> Total is not entitled to a *eund o* issuane o TCC>Ruled in avo* o CIR>

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Petition !enied> Te p*e,atu*e iling o TotalDs lai, o* *eund o unutili/ede6ess input AT o* te 1st and 2nd =ua*te*s o 2007 $eo*e te CTA %a**antsa dis,issal o te petition ; as no :u*isdition %as a=ui*ed $" te ou*t>

HELD: Pu*suant to Setion 112BA; #IRC4; a ta6pa"e* ,a" appl" a lai, o* *eund ounutili/ed input AT pa",ents not ote*%ise used o* an" inte*nal *evenue

ta6 due; %itin 2 "a*s *eoned *o, te lose o te ta6a$le =ua*te* %ente *elevant sales %e*e ,ade>

Total ailed to p*ove tat is as su$,itted te o,plete suppo*tingdou,ents to %a**ant te g*anting o te appliation o* ta6 *eundPu*suant to Setion 112 BC #IRC; te CIR as 120 da"s *o, te su$,issiono te o,plete suppo*ting dou,ents to deide te lai, o* *eund> Tus; ata6pa"e* ,ust 1st su$,it te o,plete suppo*ting dou,ents $eo*e te 120-da" pe*iod sould o,,ene> +IR Co,,issione* annot deide te lai, o**eund %itout te o,plete suppo*ting dou,ents>

&o* TotalDs ailu*e to su$,it suppo*ting dou,ents; te iling o te Petition

o* Revie% %it te CTA is p*e,atu*e> In te ase o Lope/ v Cit" o Manila;te Sup*e,e Cou*t *uled tat %e*e a *e,ed" is availa$le %itin tead,inist*ative ,aine*"; tis sould $e *eso*ted to $eo*e *eso*t an $e,ade to ou*ts; not onl" to give te ad,inist*ative agen" te oppo*tunit" todeide te ,atte* $" itsel di*etl"; $ut also to p*event unneessa*" andp*e,atu*e *eso*t to ou*ts>

<=uall" settled is te *ule tat lai,s o* ta6 *eunds; %en $ased on statutesg*anting ta6 e6e,ptions; pa*tae o te natu*e o an e6e,ptionE tus; te*ule o st*it inte*p*etation against te ta6pa"e*-lai,ant applies>

SEC // Refunds or Tax Credits of Input Tax.

(A) Zero-Rated or Effectively Zero-Rated Sales.- an" AT-*egiste*ed pe*son; %ose sales a*e /e*o-*ated o* eetivel" /e*o-*ated ,a"; %itin t%o B2 "ea*s ate* te lose o te ta6a$le =ua*te* %en te

sales %e*e ,ade; appl" o* te issuane o a ta6 *edit e*tiiate o* *eund o *edita$le input ta6 due o*paid att*i$uta$le to su sales; e6ept t*ansitional input ta6; to te e6tent tat su input ta6 as not $eenapplied against output ta69 P*ovided; o%eve*; Tat in te ase o /e*o-*ated sales unde* Setion 10(BAB2BaB1; B2 and B+ and Setion 10. B+B1 and B2; te aepta$le o*eign u**en" e6ange p*oeedste*eo ad $een dul" aounted o* in ao*dane %it te *ules and *egulations o te +ango Sent*al ngPilipinas B+SP9 P*ovided; u*te*; Tat %e*e te ta6pa"e* is engaged in /e*o-*ated o* eetivel" /e*o-*ated sale and also in ta6a$le o* e6e,pt sale o goods o p*ope*ties o* se*vies; and te a,ount o*edita$le input ta6 due o* paid annot $e di*etl" and enti*el" att*i$uted to an" one o te t*ansations; itsall $e alloated p*opo*tionatel" on te $asis o te volu,e o sales> SEC // Refunds or Tax Credits of Input Tax.

(C) Cancellation of VAT Registration. - A pe*son %ose *egist*ation as $een anelled due to*eti*e,ent *o, o* essation o $usiness; o* due to anges in o* essation o status unde* Setion 10(BCo tis Code ,a"; %itin t%o B2 "ea*s *o, te date o anellation; appl" o* te issuane o a ta6 *edite*tiiate o* an" unused input ta6 %i ,a" $e used in pa",ent o is ote* inte*nal *evenue ta6es>

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A0%N v CIR

Ponente: Cotango-ManalastasDate Promulgated: Jan 20; 2011

Topi9

&ACTS9&o* te pe*iod o Ma" 17200 to &e$ 20;2007; Avon paid 20? e6ise ta6esi,posed on pe*u,ed and toilet %ate*s unde* Se 10 o #IRC(> &o* te sa,epe*iod; Avon elet*oniall" iled (3 <6ise Ta6 Retu*ns o* Auto,o$iles and#on-<ssential 'oods so%ing an agg*egated a,ount o Pp 1(4;402;03>.as e6ise ta6 due>

8n Ma" 10; 2007; Avon iled a %*itten lai, o* *eund o e**oneousl" paide6ise ta6es> Its g*ound o* te lai, is tat te p*inipal ing*edient isdenatu*ed alool; %i is e6e,pt *o, e6ise ta6 unde* Setion 134 #IRC7;and tat its p*odut donDt ontain essential oils ,o*e tan 3? $" %eigt andas su sould not $e su$:eted to e6ise ta6 unde* Se 10 #IRC>

/ SEC /12 Non-Essential oods. * Te*e sall $e levied; assessed and olleted a ta6 e=uivalent to

t%ent" pe*ent B20? $ased on te %olesale p*ie o* te value o i,po*tation used $" te +u*eau oCusto,s in dete*,ining ta*i and usto,s duties; net o e6ise ta6 and value-added ta6; o te ollo%inggoods9Ba All goods o,,onl" o* o,,e*iall" no%n as :e%el*"; %ete* *eal o* i,itation; pea*ls; p*eious andse,i-p*eious stones and i,itations te*eoE goods ,ade o; o* o*na,ented; ,ounted o* itted %it;p*eious ,etals o* i,itations te*eo o* ivo*" Bnot inluding su*gial and dental inst*u,ents; silve*-plated%a*es; *a,es o* ,ountings o* spetales o* e"eglasses; and dental gold o* gold allo"s and ote* p*eious

,etals used in illing; ,ounting o* itting te teetE ope*a glasses and lo*gnettes> Te te*, "precious metals" sall inlude platinu,; gold; silve* and ote* ,etals o si,ila* o* g*eate* value> Te te*, Ni,itations te*eo sall inlude platings and allo"s o su ,etalsEB$ Pe*u,es and toilet %ate*sEB 5ats and ote* vessels intended o* pleasu*e o* spo*ts>9 SEC /-. !o"estic !enatured Alco#ol. - !o,esti alool o not less tan one und*ed eigt"deg*ees B1.08 p*oo Bninet" pe*ent O0? a$solute alool sall; %en suita$l" denatu*ed and *ende*edunit o* o*al intae; $e e6e,pt *o, te e6ise ta6 p*es*i$ed in Setion 1419 Provided, however, Tatsu denatu*ed alool sall $e su$:et to ta6 unde* Setion 10(BA o tis Code9 Provided, further, Tat isu alool is to $e used o* auto,otive po%e*; it sall $e ta6ed unde* Setion 14.Bd o tis Code9Provided, finally, Tat an" alool; p*eviousl" *ende*ed unit o* o*al intae ate* denatu*ing $utsu$se=uentl" *ende*ed it o* o*al intae ate* unde*going e*,entation; dilution; pu*iiation; ,i6tu*e o*an" ote* si,ila* p*oess sall $e ta6ed unde* Setion 141 o tis Code and su ta6 sall $e paid $" tepe*son in possession o su *ep*oessed spi*its>

:

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CIR did not g*ant te lai, o *eund> Te 2 "ea* p*es*iptive pe*iod is a$outto e6pi*e; ene; Avon iled te instant petition o* *evie%

Avon#s Contention: Te deinition o toilet %ate*s in te Cos,eti P*oduts Regulations %as not,odiied $" eite* statute o* *egulations> Te AT and e6ise ta6 p*ovisions

o te ta6 ode ave sine $een a,ended seve*al ti,es $ut te deinition otoilet %ate*s *e,ained unanged>

+IRDs Revenue Me,o*andu, Ci*ula* anged te deinition o toilet %ate*s

CIR#s Contention: Te RMC deined olognes %i ove*s ite,s in =uestion> <6ise ta6 %asp*ope*l" i,posed

ISS$E: )ete* o* not Avon is entitled to a *eund o e**oneousl" paid e6ise ta6 inte a,ount o Pp 4;(.1;0.0>2.>

DECISI%N: Ruled in avo* o Avon>CIR is o*de*ed to *eund o* issue a ta6 *edit e*tiiate to Avon in te a,ounto Pp 4.;.17;17.>.; *ep*esenting e**oneousl" paid e6ise ta6es onp*oduts %it essential oil ontent o 3? o* less o* te pe*iod o Ma"17;200 to &e$ 20; 2007>

HELD: Sented p*epa*ations ontaining essential oils o 3? o* less $" %eigt a*e notsu$:et to te 20? e6ise ta6 unde* Setion 10B$ #IRC>

Te deinition o toilet %ate*s as p*ovided $" Cos,eti P*oduts Regulations9 Toilet %ate*s a*e sented alooli o* non-alooli p*epa*ations p*i,a*il"used as $od" *ag*ane ontaining essential oils i>e> ,o*e tan 3? $" %eigt><6a,ples9 Lavende* %ate*; <au de Cologne; <au de Toilette>

Ao*ding to Avon; +IR in its Revenue Me,o*andu, Ci*ula* #o> 17-02 datedMa" 24; 2002 ,odiied te deinition o toilet %ate*s> +IRDs deinitione6panded te ove*age o toilet %ate*s to $*oaden te deinition to inludeall ote* olognes>

Te +IR *uling and RMC annot $e seen as a,ending te deinition o toilet%ate*s unde* te *egulations> RMC is ,e*el" an ad,inist*ative inte*p*etation

o te la% and annot $e given eet i it is ont*a*" to a RevenueRegulation> AvonDs p*odut %i ave less tan 3? essential oil ontent $"%eigt sould not $e su$:et to te 20? e6ise ta6 unde* Se 10B$ #IRC>

Te independent CPA as ve*iied te a,ount o Pp 4;(.1;0.0>2. lai,ed$" Avon %e*e indeed paid as e6ise ta6es to +IR as so%n in te e6ise ta6*etu*ns> Te pa",ents a*e p*ope*l" suppo*ted $" o*iginal dupliate salesinvoies>

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Te independent CPA o,puted te e6ise ta6es att*i$uted to ea o tedou,ents e6a,ined> Te $ates %i %as not p*oven to ave essential oilontent o 3? o* less %ill not $e ounted o* te pu*pose o te *eund>

Te a,ount to $e *eunded %as *edued to Pp 4.;.17;17.>.>

A&ENDED DECISI%N: Avon v CIR

Ponente: Cotango-ManalastasDate Promulgated: Ma" 1(; 2011

DECISI%N:CIR iled a Motion o* Reonside*ation and a*gued tat RevenueMe,o*andu, Ci*ula* #o 43-2003. is a valid inte*p*etation o Se 10B$#IRC>

Se 10B$ #IRC ,aes no distintion as to te t"pe o pe*u,e o* toilet%ate*s %i sall $e su$:et to te 20? e6ise ta6> Te ta6 ode does not

p*ovide te deinition o pe*u,es o* toilet %ate*s %i leads CTA toonlude tat su te*,s ave $een used in tei* o*dina*" ,eaning)it te *epeal o RR no .-.4 $" <8 #o 273; te deinition o te te*,sHpe*u,e and Htoilet %ate*s %e*e also *epealed>

Pe*u,es and toilet %ate*s a*e %idel" unde*stood to ,ean p*epa*ations o*li=uids ,eant o* putting *ag*ane on te sin and a*e gene*all"inte*angea$le> a%le"Ds Condensed Ce,ial !itiona*"; %i %as itedin te +IR *uling; *eino*es te inte*angea$ilit" o pe*u,e and toilet%ate*>

Te*eo*e +IR Ruling and RMC is te p*ope* appliation o Se 10B$ #IRC>

As su AvonDs p*oduts a*e su$:et to te 20? e6ise ta6 i,posed onpe*u,es and toilet %ate*s>

!eision dated Janua*" 20;2011 is *eve*sed

A&ENDED DECISI%N: Avon v CIR

Ponente: Cotango-ManalastasDate Promulgated: 8t ; 2011

DECISI%N: Te A,ended !eision !ated Ma" 1(; 2011 is set aside and te 8*iginal

!eision dated Janua*" 20;2011 is e*e$" *einstated>

CIR is o*de*ed to *eund o* issue TCC to Avon in te a,ount o Pp4.;.17;17.>.

Te deinition o Ktoilet %ate*sK unde* te Regulation ,ust still $e ollo%edinluding te *e=ui*e,ent o* essential oil ontent o ,o*e tan 3? $"%eigt> As su; Avons p*oduts %i ave less tan 3? essential oil

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ontent $" %eigt sould not $e su$:et to te 20? e6ise ta6 unde* Setion10B$ o te 17 Ta6 Code; as a,ended>

#o%e*e in te *eo*ds o te ase does it appea* tat *espondent asassessed petitione* o* te 20? e6ise ta6 on te su$:et p*oduts %it 3? o*less essential oil ontent; %at %as so%n %as onl" tat *espondent *eeivedte e**oneous pa",ent o te 20? e6ise ta6es on said p*oduts upon

*e,oval *o, te plae o p*odution>

Te A,ended !eision dated Ma" 1(; 2011 is S<T ASI!<; and te o*iginal!eision dated Janua*" 20; 2011 is e*e$" R<I#STAT<!> Respondent ise*e$" 8R!<R<! to *eund o* issue a ta6 *edit e*tiiate to petitione* in tea,ount o P4.;.17;17.>.; *ep*esenting e**oneousl" paid e6ise ta6es onp*oduts %it essential oil ontent o 3? o* less o* te pe*iod Ma" 17; 200to &e$*ua*" 20; 2007>

&INDANA% SH%PPIN' 0 DA0A% CIT3

Ponente: Cotango-ManalastasDate Promulgated: Janua*" 21; 2011Toi!: Loal Ta6 8*dinane

"ACTS:!avao Cit" olleted loal $usiness ta6es against *etaile*s onduting$usiness ope*ations; pu*suant to !avao Cit"Ds 8*dinane> Te *ate olleted%as 0? o 1? o g*oss *eeipt o sales o* *etaile*s %it g*oss *eeipt oPp2;000;000>00 o* te p*evious alenda* "ea*>

In 200; te Ta6 8*dinane %as a,ended so a ne% ta6 *ate %as i,posed onloal $usinesses> Te loal $usiness ta6 *ate %i !avao Cit" olleted is 1

Q? o g*oss *eeipts o* sales o* *eeipts in e6ess o Pp400;000> &u*te*a,end,ents %e*e ,ade on te o*dinane

&o* 200;200( and 2007 Mindanao Sopping et alDs g*oss *eeipts e6eededPp400;000; te ne% ta6 *ates %e*e i,posed against te,>

Mindanao Sopping et al assailed te validit" o te o*dinane $" iling anappeal $eo*e te !epa*t,ent o Justie B!8J on Jan 200(

!8J dis,issed te appeal>

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Mindanao Sopping appealed to te 8ie o te P*esident> Te appeal %aslie%ise denied> Tis p*o,pted Mindanao Sopping to elevate te ase to teCou*t o Appeals

Meanti,e; Mindanao Sopping iled %it !avao Cit"Ds T*easu*e* lai,s o**eund> T*easu*e* denied te *eund o* $eing p*e,atu*e>

Jan 200.; Mindanao Sopping iled %it RTC a o,plaint lai,ing o* *eundo te loal $usiness ta6es paid o* 200( and 2007>

RTC *uled in avo* o !avao Cit"> Te lai, is p*e,atu*e

&indanao S4oing#s Contention: Te ne% *ates i,posed $" teo*dinane a*e e6essive; opp*essive; illegal; onisato*"; in *est*aint ot*ade; ont*a*" to te Constitution and in violation o te Loal 'ove*n,entCode>

RTC e**ed in *uling tat te ase %as a ,e*e *epetition o te CA ase> A

ta6pa"e* sould not a%ait te inalit" o te deision o a ou*t dela*ing ata6 ,easu*e void $eo*e iling a lai, o* *eund

Davao#s Contention: RTC o**etl" dis,issed te ase> Re=uisites o litispendentia a*e p*esent9 te*e is identit" o pa*tiesE te*e is identit" o auseEte idential *elie sougt

ISS$ES:)ete* o* not te *ates i,posed $" te loal o*dinane is e6essive

DECISI%N: Ai*,ed RTC> Ruled in avo* o !avao Cit"

HELD:RTC did not e** in *uling tat te RTC ase is a *epetition o te CA ase o*tat te ele,ents o litis pendentia a*e e6tant in te RTC ase> Litispendentia is p*ediated on te p*iniple tat a pa*t" sould not $e allo%ed tove6 anote* ,o*e tan one *ega*ding te sa,e su$:et ,atte* and o* tesa,e ause o ation> Tis p*iniple is ounded on pu$li poli">

&u*te*; an" :udg,ent tat ,a" $e *ende*ed $" CA; *ega*dless o %i pa*t"is suessul; %ould a,ount to *es :udiata in te RTC>

RTC did not e** in te *uling tat RTC ase %as p*e,atu*e and tat te

Mindanao Sopping etal sould ave i*st a%aited te outo,e o te CAase> Te lai, o* *eund lodged %it te RTC is inged on te allegedunonstitutionalit" o te #e% Ta6 8*dinane; %i is te ve*" sa,e issuepending o* dete*,ination $" te CA>

Te Cou*t did not *ule on te unonstitutionalit" o te #e% Ta6 8*dinane>An o*dinane is p*esu,ed valid unless dela*ed ote*%ise $" a Cou*t in anapp*op*iate p*oeeding

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CA'A3AN v NTC

Ponente: Contang!o*&analastasDate Promulgated: 5an ,6 2//Toi!: Auto*it" to i,pose *anise ta6 $" L'

"ACTS:#TC t*ans,its and sells elet*i po%e* to CA'<LC8 I and CA'<LC8 II $ot inCaga"an>

Te P*ovine o Caga"an; t*oug te Sangguniang Panlala%igan enated in12 te P*ovinial Ta6 8*dinane>

Ma* 1.; 200.; 8IC P*ovinial T*easu*e* issued an Assess,ent Lette*;togete* %it a State,ento &*anise Ta6 !ue and a state,ent o &*anise

Ta6 Colleti$les C52001-2007> Caga"an assessed #TC o* te pa",ent o*anise ta6 ove*ing te "ea*s 2002-2007 in te agg*egate a,ount o Pp4;73..(>24 and te annual ee o Pp 20;000 B'ove*no*Es pe*,it ee topo%e* p*odue*s

#TC iled a o*,al p*otest Ma" 200.> Tis %as denied $" Caga"an> #TC didnot appeal te denial>

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stating te natu*e o te ta6; ee o* a*ge; te a,ount o deiien";su*a*ges; inte*ests and penalties>

)en #TC iled te Co,plaint; te assess,ent o Caga"an against it $ea,einal and e6euto*"; tus %itin te :u*isdition o CTA>

B2 5es> #TC is lia$le> Te auto*it" o Caga"an to i,pose *anise ta6

t*oug te 8*dinane as not $een disputed>

In #ational Po%e* Co*p B#PC vs Cit" o Ca$anatuan; te Sup*e,e Cou*tupeld te auto*it" o te L' to i,pose *anise ta6 against #PC> Se137; L'C lea*l" states tat te L's an i,pose *anise ta6not%itstanding an" e6e,ption g*anted $" an" la% o* ote* speial la%> Se13 $ut*esses te %itd*a%al o e6tant ta6 e6e,ption p*ivileges>

#TC doesnDt dispute tat its usto,e*s a*e %itin te te**ito*ial :u*isdition oCaga"an>

#TC ailed to so% tat it is e6e,pt *o, su$:et *anise ta6 unde* te

a*te* %i *eated it> La%s g*anting e6e,ption *o, ta6 a*e onst*uedst*itiss,i :u*is against te ta6pa"e* and in avo* o te ta6ing po%e*

CA'A3AN v PLDT

Ponente: Palana-<n*i=ue/

11 Se!tion /+1 Protest of Assessment> - )en te loal t*easu*e* o* is dul" auto*i/ed *ep*esentativeinds tat o**et ta6es; ees; o* a*ges ave not $een paid; e sall issue a notie o assess,ent statingte natu*e o te ta6; ee; o* a*ge; te a,ount o deiien"; te su*a*ges; inte*ests and penalties>)itin si6t" B(0 da"s *o, te *eeipt o te notie o assess,ent; te ta6pa"e* ,a" ile a %*itten p*otest%it te loal t*easu*e* ontesting te assess,entE ote*%ise; te assess,ent sall $eo,e inal ande6euto*"> Te loal t*easu*e* sall deide te p*otest %itin si6t" B(0 da"s *o, te ti,e o its iling> Ite loal t*easu*e* inds te p*otest to $e %oll" o* pa*tl" ,e*ito*ious; e sall issue a notie anelling%oll" o* pa*tiall" te assess,ent> o%eve*; i te loal t*easu*e* inds te assess,ent to $e %oll" o*pa*tl" o**et; e sall den" te p*otest %oll" o* pa*tl" %it notie to te ta6pa"e*> Te ta6pa"e* sallave ti*t" B30 da"s *o, te *eeipt o te denial o te p*otest o* *o, te lapse o te si6t" B(0 da"pe*iod p*es*i$ed e*ein %itin %i to appeal %it te ou*t o o,petent :u*isdition ote*%ise teassess,ent $eo,es onlusive and unappeala$le>

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Ponente: Cotango-ManalastasDate Promulgated: Janua*" 31; 2011Toi!: Se 7( #IRC; I**evoa$ilit" *ule

"ACTS:8n Ap*il 200(; Sta$le%oods elet*oniall" iled its Annual Ino,e Ta6 Retu*nBITR o* 200; %i *eleted an ove*pa",ent o Pp7(;24;344>

An ad,inist*ative lai, o *eund o te e6ess C*edita$le %itolding Ta6BC)T o* 200 %as iled %it +8R on #ov 200(> +IR ailed to at on teappliation o* *eund; p*o,pting Sta$le%oods to ile te p*esent Petition o*Revie%>

Sta<leoods Contention:Sta$le%oods lai,s tat it is entitled to a *eund in te a,ount o Pp(;0.;0>.2; *ep*esenting its alleged e6essFunutili/ed *edita$le%itolding ta6 o* ta6a$le "ea* 200>

CIR#s Contention:

Sta$le%oodsD lai, o* *eund is still su$:et to investigation> It ailed tode,onst*ate tat te ta6 %as e**oneousl" o* illegall" olleted> In tis ationo* *eund; Sta$le%oods as te $u*den to p*ove tat it is entitled to su

ISS$E:)ete* o* not Sta$le%oods is entitled to te *eund o* issuane o ta6 *edite*tiiate in te a,ount o Pp(;0.;0>.2; *ep*esenting Sta$le%oodsDalleged e6essFunutili/ed *edita$le %itolding ta6 o* 200>

DECISI%N: Ruled in avo* o CIR>

Sat$le%oodsD Petition is !enied>

HELD:Se 7( #IRC oe*s 2 options to a o*po*ation %ose total =ua*te*l" ino,e

pa",ents in a given ta6a$le "ea* e6eed its total ino,e ta6 due9 B1 iling alai, o* ta6 *eund Beite* in te o*, o as o* ta6 *edit e*tiiate o* B2availing o a ta6 *edit>

&o* te i*st option; an" ta6 ino,e tat is paid in e6ess o te a,ount duete gove*n,ent ,a" $e *eunded; p*ovided tat a ta6pa"e* p*ope*l" applieso* te *eund>

Te seond option %o*s $" appl"ing te *eunda$le a,ount; as so%n on

te &inal Ad:ust,ent Retu*n o a given ta6a$le "ea*; against te esti,ated=ua*te*l" ino,e ta6 lia$ilities o te sueeding ta6a$le "ea*> o%eve*; onete a**"-ove* option is ose; it $eo,es i**evoa$le o* tat ta6a$le pe*iod>

In e6e*ising its option; te o*po*ation ,ust signi" in its annual o*pad:ust,ent *etu*n its intention eite* to a**" ove* te e6ess *edit o* tolai, a *eund>

As *eleted in its annual *etu*n; Sta$le%oodsD o*iginal osen option to*eund Bin te o*, o ta6 *edit e*tiiate te a,ount o Pp(;0.;0>.2

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is atuall" negated $" its ve*" at o a**"ing ove* said e6ess a,ount to tesueeding ta6a$le =ua*te*s o 200(>

Sta$le%oods is $ound $" te i**evoa$ilit" *ule unde* Se 7( #IRC> It annotsee *eund o Pp(;0.;0>.2 even i te sa,e %as not utili/ed in tesueeding "ea*> Its onl" *eou*se is to appl" te e6ess a,ount to tesueeding =ua*te*sF"ea*s until it is ull" utili/ed9

'%$LD v CIR

Ponente: Cotango-Manalastas

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Date Promulgated: &e$ 4; 2011Toi!: !eiien" )itolding Ta6 on Co,pensation

"ACTS:8n !e 2003; 'oulds *eeived CIRDs &inal Assess,ent #otie B&A# assessingit o* alleged deiien" ino,e ta6; AT; %itolding ta6 on o,pensation;e6panded %itolding ta6 and inal %itolding ta6 o* 2000; in te

agg*egate a,ount o Pp133;7.70>14>

In te sa,e ,ont; 'oulds p*otested te assess,ent $" iling a lette* p*otest%it te +8R La*ge Ta6pa"e* !ist*it 8ie> Sine CIR did not *espond on tep*otest; 'oulds iled tis Petition o* Revie%

'ould#s Contention:'ould lai,s tat it is entitled to all te i,,unities and p*ivileges unde*Setion ( o R>A> #o> 4.0; su as te i,,unit" *o, te deiien" ino,eta6; value-added ta6; and dou,enta*" sta,p ta6 assess,ents; inludingin*e,ents te*eon o* ta6a$le "ea* 2000 in te agg*egate a,ount o Pp122;4;10(>4 7>

CIR#s Contention:CIR alleged tat te Petition o* Revie% %as not iled %itin ti*t" B30 da"s*o, te lapse o te one und*ed eigt" B1.0-da" pe*iod pu*suant toSetion 22.

ISS$E: )ete* o* not te assess,ents o* deiien" AT and <6panded)itolding Ta6 ave p*es*i$ed

DECISI%N:Petition Pa*tiall" g*anted> Te assess,ent o* deiien" inal %itolding ta6

o* isal "ea* 2000in te a,ount oP;77;242>(2 is e*e$" CA#C<LL<!> o%eve*; teassess,ents o* deiien" %itolding ta6 on o,pensation and <)T ta6issued $" *espondent against petitione* o* isal "ea* 2000 a*e e*e$"A&&IRM<! %it so,e ,odiiations> Ao*dingl"; petitione* is e*e$"8R!<R<! to PA5 *espondent te deiien" %itolding ta6 on o,pensation

HELD:Petitione* ,a" ile an ad,inist*ative p*otest %itin 30 da"s *o, te *eeipto te assess,ent> All te *elevant suppo*ting dou,ents sall $e su$,itted%itin (0 da"s *o, te date o iling o p*otest; ote*%ise; te assess,entsall $eo,e inal> I te p*otest is denied o* not ated upon %itin 1.0 da"s

*o, te su$,ission o dou,ents; te ta6pa"e* ,a" appeal to te CTA%itin 30 da"s *o, *eeipt o deision; o* *o, te lapse o te 1.0 da"pe*iodE ote*%ise; te deision sall $eo,e inal; e6euto*"; andde,anda$le

!eiien" %itolding ta6 on o,pensation G Te*e %e*e no p*oo toesta$lis te lai, o 'oulds tat te e6pense aount is att*i$uta$le in itsenti*et" to te *eti*e,ent plan> As a *esult; te assess,ent is upeld o*'ouldsD ailu*e to su$stantiate its o,,ission e6pense and e,plo"ee %ela*ee6pense aount

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&%NE3LINE v CIR

Ponente: Cotango-ManalastasDate Promulgated: &e$ 4; 2011Toi!:

"ACTS:!ee,$e* 23;200; CIR sent to Mone"line a P*eli,ina*" Assess,ent #otieBPA# %it te details o dis*epanies; assessing Mone"line o* deiien" oino,e ta6; e6panded %itolding ta6; %itolding AR; inal %itolding ta6;and apital gains ta6 o* 2002 in te a,ount o Pp 27;.72;10>(2

Mone"line p*otested and *e=uested a *einvestigation>

CIR *eplied in te o*, o a &inal Assess,ent #otie B&A#> CIR g*anted te*e=uest o* *einvestigation $ut still ound Mone"line lia$le to pa" te allegeddeiienies in ino,e ta6>

Mone"line iled a o*,al p*otest on 8t 2;200( disputing te &A#> CIRDsailu*e to at on te p*otest p*o,pted Mone"line to iled te instant Petitiono* Revie% on Jul" 17; 2007>

&one7line#s Contention:It ,ust not $e assessed a deiien"> Mone"line opted not to inlude tedata a*ge o* ta6a$le "ea* 2001; on te g*ound tat te sa,e is stilldisputed and is not "et ull" dete*,ined> Te at tat petitione* ad not"et *eeived te $illing state,ent *o, MTI-S Blient until Ma" 2002; itould not *easona$l" $e e6peted to ave no%n its lia$ilit" %it*easona$le au*a" as o !ee,$e* 31; 2001; o* even up to te last da"o iling o te 2001 Ino,e Ta6 Retu*n %it te +IR>

Mone"lineDs *eo*ds a*e ept on te a*ual $asis; does not dispute tatte e6penses in =uestion %e*e inu**ed in p*io* "ea* o* in 2001> +ut it isa*gued tat te inal a,ount o data a*ges %as onl" dete*,ined via*eeipt o te $illing invoie in Ma" 2002E tus; it %as lai,ed as e6penseonl" in "ea* 2002>

CIR#s Contention: Te assess,ents in =uestion %e*e ,ade and issued in ao*dane %it la%;*ules and *egulations

e*iiation dislosed tat e6penses inu**ed in 2001 a,ounting to P71;174;000>27 %e*e lai,ed as dedution in te o,putation o net ta6a$leino,e o* ta6a$le "ea* 2002 in violation o Setion 34BAB I Ba in *elation toSetion 4 o te 17 Ta6 Code>

ISS$E: B1 )ete* o* not te petition %as iled on ti,e>

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B2 )ete* o* not Mone"line is lia$le to deiien" ino,e ta6; %itolding;&)T; <)T o* 2002>

DECISI%N:Petition o* Revie% is e*e$" PARTIALL5 'RA#T<!> Te deiien" ino,eta6; %itolding AT; and inal %itolding ta6 assess,ents o* ta6a$le

"ea* 2002 a*e e*e$" CA#C<LL<!> 8n te ote* and; te deiien"e6panded %itolding ta6 assess,ent is e*e$" P<L! in pa*t>Ao*dingl"; Mone"line is e*e$" 8R!<R<! to PA5 *espondentCo,,issione* o Inte*nal Revenue te *edued a,ount o T)<#T5 8#< T8SA#! 8#< #!R<! TIRT5 SI P<S8S A#! F100 BP21;l3(>;*ep*esenting deiien" e6panded %itolding ta6 o*

HELD:B1 KS<C> 22.> Protesting of Assessment.-

Su assess,ent ,a" $e p*otested ad,inist*ativel" $" iling a *e=uest o**eonside*ation o* *e investigation %itin ti*t" B30 da"s *o, *eeipt o te

assess,ent in su o*, and ,anne* as ,a" $e p*es*i$ed $" i,ple,enting*ules and *egulations> )itin si6t" B(0 da"s *o, iling o te p*otest; all*elevant suppo*ting dou,ents sall ave $een su$,ittedE ote*%ise; teassess,ent sall $eo,e inal> I te p*otest is denied in %ole o* in pa*t; o*

is not ated upon %itin one und*ed eigt" B1.0 da"s *o, su$,issiono dou,ents; te ta6pa"e* adve*sel" aeted $" te deision o* ination ,a"appeal to te Cou*t o Ta6 Appeals %itin ti*t" B30 da"s *o, *eeipt o tesaid deision; o* *o, te lapse o te one und*ed eigt" BI .0-da" pe*iodEote*%ise; te deision sall $eo,e inal; e6euto*" and de,anda$le>K

Appl"ing te pe*iods p*ovided in te a$ove-=uoted p*ovision; *eo*ds *evealtat Mone"line iled its p*otest lette* %it te +IR on 8to$e* 2; 200(; %i

is e6atl" 30 da"s *o, te *eeipt o te &o*,al Assess,ent #otie o* *o,Septe,$e* 2; 200(> ene; petitione* ti,el" iled its p*otest>

Su$se=uentl"; Mone"line su$,itted its suppo*ting dou,ents on !ee,$e*20; 200(> Counting *o, te said date; CIR ad 1.0-da"s o* until June 1.;2007 to deide on te p*otest> o%eve*; in tis ase; te*e is no indiationtat *espondent ated on Mone"line s p*otest> Tus; ounting *o, te dateo te e6pi*ation o te 1.0-da" pe*iod o* *o, June 1.; 2007; Mone"line ad30 da"s o* until Jul" 1.; 2007; %itin %i to ile its appeal $eo*e tis Cou*t>Clea*l"; te instant Petition o* Revie%; %i %as iled %it tis Cou*t on Jul"17; 2007; %as iled %itin te p*es*iptive pe*iod p*ovided $" la%>

B2 Mone"line is lia$le onl" o* te deiien" e6panded %itolding ta6; itailed to %itold and *e,it te o**esponding %itolding ta6es due one*tain ino,e pa",ents du*ing te "ea*E ene; te assess,ent odeiien" e6panded %itolding ta6 sall $e upeld>

te und t*anse*s ,ade to MTI %e*e o* pa",ent o glo$al ost o* ost osales o* te se*vies petitione* *eeived *o, MTI; $ut in no %a" pe*tain tote *o"alt" o* liense pa",ents o* te use o se*vie; and sould te*eo*enot $e su$:eted to %itolding o AT>

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DIA'E% v CIR6 Commissioner of Customs (C%C)

Ponente9 C8TA#'C8-MA#ALASTAS!ate P*o,ulgated9 &e$ 14; 2011

Topi9 Reund o ta6 o o* #on-AT *egiste*ed o,pan">

"ACTS: !iageo is a do,esti o*po*ation engaged in i,po*tation and%olesale t*ading o li=uo*s and spi*its %it *etail outlets loated %itinte Su$i +a" &*eepo*t one BS+&>

Its p*i,a*" pu*pose is to Kdeal in;

$a*te*; e6ange and dispose o all inds o goods; %a*es; a*tiles;

o,,odities; ,e*andise and p*oduts suas

$ut not li,ited toli=uo*s; spi*its; e,ials; a*d%a*e; elet*ial e=uip,ent and supplies;$oos and pe*iodials on %olesale $asis onl"; ondut and engage inte $usiness as i,po*te*s and e6po*te*s o all inds o o,,odities;and at as agents o* *ep*esentatives o i*,s and individuals %ete*do,esti o* o*eign and as su develop; p*o,ote and e6tend te$usiness inte*ests o su i*,s andFo* individualsK>!iageo is *egiste*ed in te S+& as a KSu$i +a" &*eepo*t <nte*p*iseK>

It is *egiste*ed %it te +IR Revenue !ist*it 8ie>

!iageo i,po*ted e*tain li=uo*s and spi*its into te Su$i Speial

<ono,i and &*eepo*t one BSS<& in 200>

o%eve*; it e6po*ted outo te SS<& also in 200; so,e o said i,po*ted li=uo*s and spi*its>

8n 8to$e* 23; 200(; !iageo iled %it CIR te app*op*iatead,inist*ative lai, o* *eundFta6 *edit o P4;13.;31>20;*ep*esenting e6ise ta6 and AT paid $" !iageo o* 200 on itsi,po*tation into S+& o li=uo*s and spi*its %i %e*e su$se=uentl"e6po*ted>

8n 8to$e* 2; 200(; !iageo iled %it CoC te ad,inist*ative lai,o* *eundFta6 *edit o P1;23;2((>3; *ep*esenting alleged

e**oneous pa",ent o ta*i and usto,s duties $" !iageo o* ta6a$le"ea* 200; on its i,po*tation into and e6po*tation *o, S+& o li=uo*sand spi*its>

!iageo lai,s tat it is entitled to a *eundFta6 *edit o* its p*eviousl"paid e6ise ta6; AT; and ta*i and usto,s duties; pu*suant to Setion12B o RA 7227 and Se 43 o te IRR %i allegedl" e6e,pt !iageo*o, all national inte*nal *evenue ta6es and ta*i and usto,s dutieson i,po*tations; inluding e6ise ta6>

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CIR ounte*s tat te a,ount o P4;13.;31>20 lai,ed $" !iageo as

e**oneous pa",ent o AT on te i,po*tation into te S+& is notp*ope*l" dou,ented> C8C adds tat !iageo is not e6e,pt pu*suant toRA 334; %i speiiall" p*ovides tat ta6es; duties and a*ges;inluding e6ise ta6es; a*e ,ade to appl" even to SS<&; iting Se131 o #IRC; as a,ended $" RA 334>

ISS$E: )8# !iageo is entitled to a *eund o* issuane o ta6 *edit oP(;377;77> BP37;;11>(; P1(;17;01>24 and P1;23;2((>3allegedl" *ep*esenting e6ise ta6; AT and ta*i and usto,s dutiese**oneousl" paid $" !iageo on its i,po*ted and e6po*ted li=uo*s andspi*its in 200>

DECISI%N: N% Clai, o* *eund ,ust ail> Petition o* *evie% denied>

HELD: Se 112B0

involves a lai, o* *eund o* ta6 *edit $" a AT-*egiste*ed ta6pa"e* o unutili/ed input AT att*i$uta$le to /e*o-*ated o*eetivel" /e*o-*ated sales o* due to *eti*e,ent *o, o* essation o$usiness unde* Setions 112BA and BC o te sa,e Code> e*e;petitione* is a non-AT-*egiste*ed pe*son

and tis is a lai, o* *eund

o AT paid on i,po*tation $ased on petitione*s e6e,ption p*ivilegepu*suant to RA #o> 7227> Tus; te applia$le p*ovisions a*e Setions22 and204BC o te #IRC o 17; instead o Setion 112B0>

+ased on te a,end,ent int*odued $" RA 334; it is lea* tat Ktei,po*tation o iga*s and iga*ettes; distilled spi*its; e*,ented li=uo*s

and %ines into te Pilippines; even i destined o* ta6 and dut"-*eesops; sall $e su$:et to all applia$le ta6es; duties; a*ges;inluding e6ise ta6es due te*eonKE tis sall appl" to iga*s andiga*ettes; distilled spi*its; e*,ented li=uo*s and %ines $*ougtdi*etl" into te dul" a*te*ed o* legislated *eepo*ts o te SS<&;

*eated unde* RA 7227> It is atego*iall" p*ovided tat tea,end,ents %ill aet a*te*ed o* legislated *eepo*ts o SS<&;*eated unde* RA 7227> Te la% is; te*eo*e; lea* tat Ktei,po*tation o iga*s and iga*ettes; distilled spi*its; e*,ented li=uo*sand %ines into te Pilippines; even i destined o* ta6 and dut"-*eesops; sall $e su$:et to all applia$le ta6es; duties; a*ges;

inluding e6ise ta6es> Te p*ase Kall applia$le ta6esK inludes ta6lia$ilit" o* te pa",ent o AT on i,po*tation unde* Setion 107 ote #IRC; as a,ended>

+" su$se=uentl" enating RA 334; Cong*ess e6p*essed its intention to%itd*a% !iageos ta6 e6e,ption p*ivilege on tei* i,po*tations oiga*s; iga*ettes; distilled spi*its; e*,ented li=uo*s and %ines>

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9INE;RENNER v CIR

Ponente9 C8TA#'C8-MA#ALASTAS!ate P*o,ulgated9 &e$ 1(; 2011

Topi9 Reund o e6ess and unutili/ed *edita$le ino,e ta6es %iteld

"ACTS: 9INE;RENNER6 a do,esti o*po*ation unde* Pilippine la%s;iled %it te +IR te o*iginal 200 Ino,e Ta6 Retu*n Ap*il 17 200(;te &i*st A,ended ITR on Ma" ; 200( and te Seond A,ended ITR onMa" 1; 200(>

8n Ap*il ; 200.; petitione* iled %it te +IR Revenue !ist*it 8ie#o> 0 an ad,inist*ative lai, o* *eund o e6ess and unutili/ed*edita$le %itolding ta6es o* ta6a$le "ea* 200 in te a,ount oP4;312;(4>00> Te*eate*; petitione* iled te instant Petition o* Revie% on Ap*il 14;

200.>

CIR inte*posed tat )I#<+R<##<R is not entitled to a *eund o* ta6*edit $eause it opted to a**"-ove* its e6ess *edita$le %itoldingta6 o* 200 in its A,ended Annual Ino,e Ta6 Retu*n iled on Ma" ;200(> ene; said option is onside*ed i**evoa$le and annot $ealte*ed $" iling an a,ended annual ino,e ta6 *etu*n pu*suant toSetion 7( o te 17 Ta6 Code and te !eision o te ono*a$le

Cou*t in te ase o Cebu Holdings, Inc. vs. Commissioner of Internalevenue, C !.A. Case o. #$#% dated &eptember '$, %$$%.

ISS$E: )8# )I#<+R<##<R is entitled to a *eund o* issuane o ta6*edit e*tiiate in te a,ount o P4;312;(4>00; *ep*esenting allegedunutili/ed *edita$le %itolding ta6 o* ta6a$le "ea* 200>

DECISI%N: No Petition denied

HELD: Te Annual Ino,e Ta6 Retu*ns *eveals tat )I#<+R<##<R

opted to a**" ove* and appl" its e6ess *edita$le ino,e ta6es%iteld o* ta6a$le "ea* 200 to te sueeding "ea*> )ile

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)I#<+R<##<R ,a*ed te $o6 pe*taining to te p*ase KTo $e issued a Ta6 C*edit Ce*tiiateK o* its unutili/ed e6ess *edita$le %itolding

ta6 in its o*iginal1

and seond a,ended Annual Ino,e Ta6 Retu*nso* 200; its i*st a,ended Annual Ino,e Ta6 Retu*n o* 200e6pliitl" so%s tat )I#<+R<##<R ose te option o a**"-ove* o itse6ess *edita$le %itolding ta6 $" ,a*ing te $o6 o**esponding to

te p*ase KTo $e a**ied ove* as ta6 *edit ne6t "ea*F=ua*te*K > Tea**"-ove* option is onside*ed i**evoa$le and annot $e alte*ed $"iling an a,ended Annual Ino,e Ta6 Retu*n; pu*suant to Setion 7(o te #IRC o 17; as a,ended; and no appliation o* a ta6 *eundo* issuane o ta6 *edit e*tiiate sall ten $e allo%ed

In te seond a,ended ITR o* 200; )I#<+R<##<R ad total ta6*edits o P;.00;(3>00E %i onsisted o te p*io* "ea*s e6ess*edits in te a,ount o P;4..;2(>00 and *edita$le ta6es %itelddu*ing te "ea* 200 in te a,ount o P4;312;(4>00> Petitione*sino,e ta6 due %as paid using a po*tion o its p*io* "ea*s e6ess

*edits o P;4..;2(>00; leaving te p*io* "ea*s e6ess *edits in tea,ount o P4;421;173>00 BP;4..;2(>00 less P1;0(7;0(>00 and*edita$le ta6es %iteld du*ing te "ea* 200 in te a,ount oP4;312;(4>00; o* a total o P.;733;.(7>00; unutili/ed as o !ee,$e*31; 200> Indeed; Cou*t inds tat )I#<+R<##<R did not in at a**"ove* and appl" te 200 unutili/ed e6ess ta6 *edits o

P4;312;(4>002 as ,a" $e ve*iied in its 200( Annual Ino,e Ta6

Retu*n> #eve*teless; in te ase o Commissioner of Internal evenue

vs. (an) of the Philippine Islands, te Sup*e,e Cou*t dela*ed tateven if t4e e8!ess in!ome ta8 !redit as not a!tuall7 aliedto a ta8 lia<ilit7; te oie to a**" ove* is still i**evoa$le>

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;AR'E 0 C%&&ISSI%NER %" C$ST%&S AND $NDERSECRETAR3 %""INANCE

Ponente9 +ATISTA; J!ate P*o,ulgated9 &<+ 17; 2011

Topi9 Illegal i,po*tation

"ACTS: 8n August 23; 200(; MFT K Jao$ 1;K to%ing $a*ge KCe*"l Ann;Kontaining used oil *o, te Repu$li o Palau; ente*ed te Po*t o Su*igao>

Te said tug$oatF$a*ge ontained p*oi$ited a*goes Bused oil %itout

neessa*" pe*,its *o, te one*ned gove*n,ent agen"; te vessels %e*edetained $" te Pilippine Coast 'ua*d upon te *e=uest o te !ist*itColleto* o te Po*t o Su*igao> A )a**ant o Sei/u*e and !etention %asissued against te $a*ge KCe*"l AnnK and its a*go o used oil> ASupple,ental ) a**ant o Sei/u*e and !etention %as issued against tug$oatMFT KJao$ 1;K o* te i,po*tation; onve"ane andF o* t*anspo*tation ounla%ul ,ate*ials in violation o Setion 230 o te TCCP; as a,ended>

Petitione*Ds Contention9 Te a*go %as destined and intended o* Mala"sia> Te ano*age o MFT Jao$ 1 at te Po*t o Su*igao %as aused $" te needo* Ke,e*gen" $une*ingK as it %as *unning lo% on uel; ood p*ovisions andsue*ing ,eanial p*o$le,> Po*t Auto*ities and one*ned agenies %e*e

notiied o te a**ival and ano*age o Jao$ 1 at te Su*igao Cit" %a* o*Ke,e*gen" $une*ingK and *e=uested o* assistane to ailitate ande6pedite its <nt*ane and Clea*ane o*,alities> MFT Jao$ 1 %as givenp*ope* lea*ane $" te I,,ig*ation 8ie* in Su*igao Cit"; te +u*eau oua*antine and ote* pe*tinent gove*n,ent agenies to depa*t o* Manila o*Ce$u o* *epai*s as tese annot $e done in Su*igao>

RespondentDs Contention9 iolation o Setion 230 o te TCCP; as a,ended>

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S<CTI8# 230> Property &ub*ect to +orfeiture nder !ariff and Customs aws.- An" veile; vessel o* ai**at; a*go; a*tiles and ote* o$:ets sall; unde*te ollo%ing onditions; $e su$:et to o*eitu*e9a> An" veile; vessel o* ai**at; inluding a*go; %i sall $e usedunla%ull" in te i,po*tation o* e6po*tation o a*tiles o* in onve"ing andFo*t*anspo*ting ont*a$and o* s,uggled a*tiles in o,,e*ial =uantities into o**o, an" Pilippine po*t o* plae> Te ,e*e a**"ing o* olding on $oa*d o

ont*a$and o* s,uggled a*tiles in o,,e*ial =uantities sall su$:et suvessel; veile; ai**at; o* an" ote* *at to o*eitu*e9 Provided, Tat tevessel; o* ai**at o* an" ote* *at is not used as dul" auto*i/ed o,,ona**ie* and as su a a**ie* it is not a*te*ed o* leasedE

ISS$E=s: )8# te*e %as an illegal i,po*tation o,,itted; o* at least anatte,pt te*eo; %i %ould :usti" te o*eitu*e o te $a*ge KCe*"l Ann>K

DECISI%N: N% Petition 'RANTED Te Co,,issione* o Custo,s is8R!<R<! to IMM<!IAT<L5 R<L<AS< te $a*ge KCe*"l Ann>

HELD: +a*ge KCe*"l Ann;K $eing a non-,oto*i/ed vessel; and $eing to%ed

$" te tug$oat K Jao$ 1;K ente*ed te :u*isdition o te Pilippines onl"$eause te latte* %as o*ed to ente* te Po*t o Su*igao o* an e,e*gen"$une*ing> As dul" app*oved $" *espondent Co,,issione* o Custo,s; tedou,enta*" e6i$its %ould lea*l" point to te onlusion tat te MFTJao$ 1 %as $ound o* Mala"sia; and %ould ave a**ived te*eat; %e*e it noto* te da,age sustained $" te MFT Jao$ 1 %ile in t*ansit *o, Palau toMala"sia; neessitating e,e*gen" *epai*s in te Po*t o Su*igao; te nea*est

po*t>K1. Tus; te onse=uent ent*" o te $a*ge KCe*"l AnnK into tePilippine :u*isdition %as onl" due to te e,e*gen" needs o te tug$oatKJao$ 1;K %i p*inipall" navigates and ont*ols te *oute>

<vident *o, te To%i*e Ag*ee,ent *ee**ed to in te !isposition &o*,;ente*ed into $" and $et%een 8SM Sipping Pils>; In>; te o%ne* o MFTKJao$ 1;K and petitione*; as te o%ne* o te $a*ge KCe*"l Ann;K atego*i/edas a ont*at o a*eigt,ent; tat te o%ne* o te tug$oat ,ans te vessel%it its o%n people and *etains te possession; o,,and and navigation osaid te sip> Te KCe*"l Ann;K $eing a non-,oto*i/ed vessel; and onl"to%ed $" K Jao$ 1;K ,aing te tug$oat te p*inipal and te $a*ge a ,e*eaesso*"; neessa*il"; as no ,eans o ont*olling its *oute o* destination>Cou*t inds te ele,ent o intent on te pa*t o te $a*ge KCe*"l AnnK%anting>

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'RAND PLA>A H%TEL C%RP%RA TI%N v CIR

Ponente9 C8TA#'C8-MA#ALASTAS; !ate P*o,ulgated9 &e$*ua*" 1.; 2011

Topi9 <et o AT e6e,ption o a o*po*ation on ote* entities it t*ansats%it

"ACTS: '*and Pla/a otel Co*po*ation is a do,esti o*po*ation; *eeived aP*eli,ina*" Assess,ent #otie BPA# dated #ove,$e* 2.; 200( indiating itsalleged lia$ilit" o* deiien" AT o* ta6a$le "ea* 2002 a,ounting toP22.;43;.>1; inlusive o inte*est %i a*ose *o, '*and Pla/ast*ansation %it te Pilippine A,use,ent and 'a,ing Co*po*ationBPA'C8R> '*and Pla/a e**oneousl" *eo*ded its t*ansations %it PA'C8R;a,ounting to P14;122;24>.4; as e6e,pt sales %en te t*ansation souldave $een su$:et to AT>

CIR ave**ed tat PA'C8Rs a*te* ad $een eetivel" a,ended $" RA 771(o* te <-AT la% on Janua*" I; 1( and $" Setion 10. o te #IRC o 17>CIR lie%ise alleged tat '*and pla/a is lia$le o* output ta6 on p*evious"ea*s Bove*ing te pe*iod *o, 1( to 2001 t*ansations %it PA'C8Rtotaling Pl0.;714;740>.3; sine PA'C8R is su$:et to A T $eginning Janua*"l ; 1(>

CIR is o te $elie tat an" sale t*ansation unde*taen in te ou*se o$usiness %i does not onstitute sale o goods BSetion 10(; #IRC o 17;

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and %i is not e6p*essl" e6e,pt *o, AT unde* te Code BSetion 10; #IRC o 17; is e,$*aed in te lassiiation o a Kse*vieK su$:et to te10? AT Sine te t*ansation $et%een petitione* and PA'C8R is inluded inte lassiiation o a Kse*vieK; *espondent onluded tat su t*ansationis su$:et to A T>

'*and Pla/a; ,aintained tat PA'C8R *e uses to pa" te AT on its

t*ansations %it '*and Pla/a; iting Setion 13B2Ba o P! 1.( BKPA'C8RCa*te*K %i e6e,pts it *o, all inds o ta6es; levies; ees o*assess,ents o an" ind; natu*e o* des*iption levied; esta$lised o*olleted $" an" ,uniipal; p*ovinial o* national gove*n,ent auto*it">PA'C8R is *el"ing on Setion 10.B+B3 o te Ta6 Code; %i i,poses ATat 0? on se*vies *ende*ed to ta6-e6e,pt entities unde* speial la%s; suas PA'C8R; iting as its $asis te *uling o te Sup*e,e Cou*t inCommissioner of Internal evenue vs. Acesite Hotel Corporation /Acesitecase0.

ISS$E: )8# '*and Pla/a t*ansations %it PA'C8R a*e su$:et to I0? AT$eginning Janua*" 1; 1( up to te "ea* 2002>

DECISI%N: #8> Petition is g*anted> Assess,ent issued against '*and Pla/ao* deiien" AT o* ta6a$le "ea*s 1( to 2002 is e*e$" CA#C<LL<!>

HELD: In Commissioner of Internal evenue vs. Acesite Hot el Corporation,te Sup*e,e Cou*t al*ead" settled te issue as to PA'C8Rs e6e,ptionunde* P! 1.(> It *uled tat unde* PA'C8Rs Ca*te*; it is g*anted e6e,ption*o, pa",ent o ta6es e6ept *anise ta6E %i sall $e in lieu o all indso ta6es; levies; ees o* assess,ents o an" ind; natu*e o* des*iption;levied; esta$lised o* olleted $" an" ,uniipal; p*ovinial; o* nationalgove*n,ent auto*it"> Su e6e,ption is e6tended to entities o* individualsdealing %it PA'C8R in asino ope*ations>

Sine '*and Pla/aDs t*ansation %it PA'C8R pe*tains to latte*s asinoope*ations; PA'C8R s e6e,ption *o, ta6es; speiiall" *o, AT; e6tendsto its t*ansation %it '*and Pla/a>

CIRDs assess,ent involves '*and Pla/aDs t*ansations %it PA'C8R *o,1( to 2002> '*and Pla/aDs se*vies to PA'C8R *elate to se*vies *ende*edto an entit" %ose e6e,ption unde* speial la%; %i is PA'C8Rs Ca*te*;eetivel" %ould su$:et te suppl" o su se*vies to 0? *ate> Su 0?*ate is atego*iall" p*ovided unde* Setion 10.B+B3 o te #IRC o 17; to%it9 B3 Se*vies *ende*ed to pe*sons o* entities %ose e6e,ption unde*speial la%s o* inte*national ag*ee,ents to %i te Pilippines is asignato*" eetivel" su$:ets te suppl" o su se*vies to /e*o pe*ent

B0? *ate>K

A to*oug stud" o te p*ovisions ited $" CIR; %i supposedl" *epealedte e6e,ption p*ovided unde* P! 1.( and tose %i pu*po*tedl"su$:eted petitione* to 10? A T ; *eveals tat said p*ovisions ailed tolea*l"; e6p*essl" and una,$iguousl" esta$lis tat '*and Pla/a ,a"*igtull" $e su$:eted to pa" te 10? AT>

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P! 1.( is a speial la% %i gove*ns te *anise o PA'C8R> +et%eente p*ovisions o P! 1.( as against te p*ovisions unde* te #IRC o 17;%i is a gene*al la%; te o*,e* neessa*il" p*evails> Tis is in ao*dane%it te *ule tat on a speii ,atte*; te speial la% sall p*evail ove* tegene*al la%E %i sall $e *eso*ted to onl" to suppl" deiienies in teo*,e*> In addition; %e*e te*e a*e t%o statutes; te ea*lie* speial and telate* gene*al - te te*,s o te gene*al $*oad enoug to inlude te ,atte*

p*ovided o* in te speial - te at tat one is speial and te ote* isgene*al *eates a p*esu,ption tat te speial is to $e onside*ed as*e,aining an e6eption to te gene*al; one as a gene*al la% o te land; teote* as te la% o a pa*tiula* ase>

INTERP$;LIC v CIR

Ponente9 +autista; J>!ate P*o,ulgated9 &e$*ua*" 21; 2011

Topi9 Ad,inist*ative lai, o* *eund o* issuane o ta6 *edit e*tiiate $"non-*esident o*eign o*po*ation on ove*paid inal %itolding ta6 B&)T onas dividends *o, a do,esti o*po*ation>

"ACTS:Inte*pu$li is a non-*esident o*eign o*po*ation dul" o*gani/ed and e6istingunde* and $" vi*tue o te la%s o te State o !ela%a*e; SA; %it p*inipal

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a*e su$:et to te p*ee*ential ta6 *ate o 1?; onside*ing tat te >S>allo%s a *edit against te ta6 due *o, te non-*esident o*eign o*po*ationta6es dee,ed to ave $een paid in te Pilippines; as oni*,ed inCommissioner of Internal Revenue vs> Procter and 1amble Philippine2anufacturing Co*p>; et al., pa*tiula*l"; Setions 01 and 02 o te >S>Inte*nal Revenue Code> As o**etl" pointed out $" Inte*pu$li; i it %ill $esu$:eted to te ta6 *ate o 3? instead o te 1? p*ee*ential *ate $ased

on te said as dividend; it %ill $e a depa*tu*e and ont*a*" to te intentiono te RP- S Ta6 T*eat"E %i lea*l" p*ovided te ont*ating pa*tiesspeii p*ee*ential *ates ote* tan te 3? ta6 *ate>

In vie% o te o*egoing; tis Cou*t inds petitione*; as a o*eign o*po*ationino*po*ated and do,iiled in te >S>; entitled to te 1?>

HA0I "%%D SER0ICES v CIR

Ponente9 C8TA#'C8-MA#ALASTAS; J!ate P*o,ulgated9 &<+ 2.; 2011

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Topi9 +asi *e=ui*e,ents in o*de* o* it to $e entitled to te *eund o e6ess*edita$le %itolding ta6es

"ACTS: avi &ood Se*vies Pils> In is a do,esti o*po*ation> 8n Ma* 2.;200( and Ma* 2; 2007; avi iled its Annual Ino,e Ta6 Retu*ns o*ta6a$le "ea*s 200 and 200(; *espetivel"> avi iled 2 o*,al %*ittenappliations o* *eund %it te +IR Revenue !ist*it 8ie #o> 04-Ma*iina

Cit" on &e$*ua*" 20; 200. and August 31;2007 in te a,ountoP;23.;4(1>00; *ep*esenting its unutili/ed e6ess *edita$le ino,e ta6es%iteld o* 200 and 200(>

CIR lai,s tat te $u*den o p*oo is on avi to p*ove tat it is entitled tote lai, o* *eundE a lai, o* *eund is onst*ued st*itl" against telai,ant and in avo* o te ta6ing auto*it"E te $u*den o p*oo is on avi toso% %it lea* and una,$iguous p*ovision o la% to suppo*t te *eund>

ISS$E: )8# avi is entitled to $e *eunded its e6ess *edita$le %itoldingta6es o* 200( in te a,ount oP;23.;4(1>00>

DECISI%N: #8> Petition is denied>

HELD: Te o*po*ate ta6pa"e*s e6ess ta6 *edits o* ove*paid ino,e ta6 ina given ta6a$le "ea* ,a" eite* $e *eunded Beite* in te o*, o as o* ta6*edit e*tiiate o* a**ied ove*Fapplied to te sueeding ta6a$le "ea*s>o%eve*; one te option to a**"-ove* as $een ,ade; te sa,e $eo,esi**evoa$le o* tat ta6a$le pe*iod> In &hell &ervices International &endirian(erhad vs. Commissioner ofInternal evenue te dete*,ination o te optionosen $" te ta6pa"e* in ao*dane %it Setion 7( o te#IRCo17>

aviDs Annual Ino,e Ta6 Retu*n o* 200( so%s tat avi a**ied ove* te200 e6ess *edits in te a,ount o P234;(>00; %i %as inluded in te

a**"-ove* a,ount o P7;22;340>00> Te sa,e %as *eleted in petitione*s2007 Annual Ino,e Ta6 Retu*n; %i so%s p*io* "ea*s e6ess *edits>

Set 2>. o RR 2-.; as a,ended; *e=ui*e o,pliane %it 3 $asi*e=ui*e,ents in o*de* o* it to $e entitled to te *eund o e6ess *edita$le%itolding ta6es91> Tat te lai, o* *eund %as iled %itin te t%o-"ea* p*es*iptive pe*iodas p*ovided unde* Setion 204BC; in *elation to Setion 22 o #IRC o 17E2> Tat te at o %itolding is esta$lised $" a op" o a state,ent dul"issued $" te pa"o* B%itolding agent to te pa"ee; so%ing te a,ountpaid and te a,ount o ta6 %iteld te*e*o,E and3> Tat te ino,e upon %i te ta6es %e*e %iteld %e*e inluded in te

*etu*n o te *eipient

Te a,ount tat an $e a p*ope* su$:et o a lai, o* *eund on te $asis oSetion 7( o te #IRC o 17 is te lai,ed e6ess *edita$le %itoldingta6es o* ta6a$le "ea* 200(; o* %i petitione* iled its o**espondingAnnual Ino,e Ta6 Retu*n on Ma* 2; 2007> Counting *o, tis date;petitione* ad until Ma* 2; 200 %itin %i to ile its lai, o* *eund o*issuane o ta6 *edit e*tiiate o* ta6a$le "ea* 200(; $ot in tead,inist*ative and :udiial levels> Petitione*s ad,inist*ative lai,s o* *eund

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%e*e iled on &e$*ua*" 20; 200. and August 31; 2007E %ile its :udiial lai,via te instant Petition o* Revie% %as iled on Ma* 10; 200.> Clea*l"; $otte ad,inist*ative and :udiial lai,s o* *eund %e*e iled %ell %itin tet%o-"ea* p*es*iptive pe*iod> ene; te i*st *e=uisite %as ,et $" petitione*>

In o,pliane %it te 2nd *e=uisite; avi su$,itted Sedules o C*edita$le)itolding Ta6es Clai,ed; !etails o C*edita$le Ta6es )iteld ; and

Ce*tiiates o C*edita$le Ta6 )iteld at Sou*e B+IR &o*, #o> 2307 E %i%e*e e6a,ined $" te Co,i-o,,issioned Independent Ce*tiied Pu$liAountant BCPA; Ms> M"*a Celeste 0> !a$alos> In e* inal *epo*t; Ms>!a$alos noted a P8>ll *ounding o die*ene $et%een te *edita$le%itolding ta6es *eleted in te Ce*tiiates o C*edita$le Ta6)iteld at Sou*e and te a,ounts so%n in te Sedule o C*edita$le)itolding

Ta6es> o%eve*; e*tiiates %it *edita$le %itolding ta6es in te a,ounto P.;2>( %e*e not dul" signed $" te *espetive pa"o*sF%itoldingagents> Te*eo*e; petitione* %as a$le to p*ove te at o %itolding onl" asto te a,ount oP4;;370>31>

As to te 3*d *e=uisite; te*e is a dis*epan" o P27;47;704>0 $et%een tetotal g*oss ino,e *eleted pe* aviDs ino,e ta6 *etu*n vis-a-vis te totala,ount so%n pe* +IR &o*,s #o> 2307> avi ailed to *eonile sudis*epan">

In vie% o aviDs ailu*e to p*ove tat it dela*ed te ino,e upon %i tesu$stantiated *edita$le %itolding ta6 o P4;;370>31 o* ta6a$le "ea*200( %as %iteld; te *eund lai, annot $e g*anted>

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REP$;LIC CE&ENT v CIR

Ponente9 C8TA#'C8-MA#ALASTAS; J!ate P*o,ulgated9 MARC 17; 2011

Topi9 Pa",ents o se*vies to non-*esident o*eign o*po*ation

"ACTS: &R Ce,ent Co*po*ation; a do,esti o*po*ation; is engaged in te,anuatu*e and dist*i$ution o e,ent; on*ete agg*egates and on*etep*oduts gene*all" o* te $uilding and onst*ution indust*"; and to a**" onall $usinesses inident te*eto o* onneted te*e%it> 8n Ap*il 22; 2003;Repu$li Ce,ent *eeived a P*eli,ina*" Assess,ent #otie dated Ma* 3;2003 o* alleged deiien" ino,e ta6; %itolding o inal value-added ta6;and %itolding ta6 on o,pensation o* ta6a$le "ea* ended !ee,$e* 31;1 inlusive o inte*est and o,p*o,ise penalties>

In te assess,ent o deiien" ino,e ta6; CIR disallo%ed te dedution*o, Repu$li Ce,ents g*oss ino,e *o, te %*ite-o o invest,ent du*ing

ta6a$le "ea* 1 o* $eing unsu$stantiated; and noted a dis*epan" in tevolu,e o e,ent $ags p*odued in te !ail" 8pe*ation Repo*t and teP*odution Cost Su,,a*" o Repu$li Ce,ent o* ta6a$le "ea* 1> Teao*esaid dis*epan" %as ten onluded to ave *esulted in an unde*-dela*ation o ino,e>

CIR also assessed Repu$li Ce,ent o deiien" ino,e ta6 pe*taining to teline* sales o* ta6a$le "ea* 1 on te assu,ption tat line* sales a*enot ove*ed $" Repu$li Ce,ents Ino,e Ta6 olida" in 1; and tat ao**eting ent*" in *elation to te pu*po*ted disposal o eav" e=uip,ent in1. is not a deduti$le e6pense $ut sould ave $een a*ged to Retained<a*nings in 1> CIR disallo%ed dedution *o, Repu$li Ce,ent s g*oss

ino,e in 1 o va*ious pa",ents to supplie*s o goods and se*vies tat%e*e allegedl" not su$:eted to %itolding ta6> CIR also disallo%eddedution *o, g*oss ino,e; *ep*esenting dep*eiation e6penseo**esponding to pa",ents ,ade to non-*esident o*eign o*po*ations; %i%e*e a*ged to p*ope*t" aount $ut %e*e not su$:eted to inal %itoldingta6> CIR alleged tat Repu$li Ce,ent ailed to %itold 10? AT on itspa",ents to non-*esident o*eign o*po*ations o* Manage,ent eeB *o"alt" ; Retention and Se*vie o <le6 <nginee*s *upp Pol"sius Se*vieCont*at; +M Claudius <nginee*s; Retention and Se*vie &ee o M*>

Jadg,ann; and +M Claudius <nginee*s>

ISS$E: )8# Repu$li is lia$le o* deiien" ino,e ta6 U %itolding inal

AT 1

DECISI%N: 5<S> Petition is PARTIALL 5 'RA#T<!> Assess,ent o deiien"*edita$le %itolding AT o* 1 is A&&IRM<! %it M8!I&ICATI8#S>

HELD: In vie% o Repu$li Ce,entDs avail,ent o ta6 a,nest"; evaluation isli,ited to validit" o assess,ent o deiien" %itolding o inal AT o*1> Repu$li Ce,ent ailed to ile a *etu*n ta6es $eing assessed against it>#o evidene %as p*esented $" Repu$li Ce,ent to p*ove tat it dul" iled ta6

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*etu*ns o* te deiien" %itolding o inal AT> Tus; te Cou*t inds tatRepu$li Ce,ents deiien" %itolding o inal AT ,a" $e assessed atan" ti,e %itin ten B10 "ea*s ate* te disove*" o te said o,ission>Ao*dingl"; CIR s *igt to assess Repu$li Ce,ent s deiien" %itoldingo inal AT o* 1 as not p*es*i$ed %en e issued on Ma* 3; 2004 te&o*,al Lette* o !e,and te applia$ilit" o te 10-"ea* p*es*iptive pe*iod>

As to pa",ents o se*vies to non-*esident o*eign o*po*ation %i %e*enot su$:eted to te pa",ent o inal %itolding AT p*es*i$ed unde*Setion 114BC o te #IRC o 17 and unde* Se 4>102 o Rev Reg 7-;Repu$li Ce,ent is *e=ui*ed to %itold 10? *edita$le AT on its pa",entso se*vies to non- *esident o*eign o*po*ation>

- Manage,ent &ee BRo"alt" not su$:eted to *edita$le %itolding AT;Repu$li Ce,ent availed o te olunta*" Assess,ent and A$ate,entP*og*a, BAAP and paid te 10? *edita$le %itolding AT; te*eo*e;inlusion o tis ite, in te total deiien" inal %itolding AT ise**oneous>

- Retention and Se*vie o <le6 <nginee* - *elassiiation ent*" *o, KP*epaidI,po*tation Ca*gesK to a te,po*a*" aount K&ato*" Ledge*K; %i ,eanstat te i6ed assets %e*e *eo*ded in te $oos is unve*iia$le and sel-se*ving> #o ote* suppo*ting dou,ents %e*e p*esented to p*ove tat it %asindeed apitali/ed> ene; tis dou,ent ,e*its ve*" little %eigt and CIRsassess,ent te*eon is p*ope*>

- *upp Pol"sius Se*vie Cont*at G it %as p*oved tat pa",ent %as ,ade todo,esti o*po*ations; tus; te pa",ents sall not $e su$:eted to%itolding o *edita$le AT> +ut unve*iied a,ounts sall $e su$:et to%itolding o inal AT >

- M Claudius <nginee* G is a non-*esident o*eign o*po*ation in 'e*,an";%ose se*vies %e*e engaged $" Repu$li Ce,ent to ove*see and supe*vise*eonst*ution o its Te*esa Plant> Pa",ent o se*vies to +M Claudius<nginee*s ,ust $e su$:et to %itolding o inal AT> Repu$li Ce,ent didnot ile no* *e,it %itolding AT on pa",ents ,ade to +M Claudius<nginee*s; so CIRs assess,ent sall $e upeld>

- Retention and Se*vie &ee o M*> Jadg,ann - M*> Reina*d Jagd,ann; +MCo,,issioning Supe*viso*; is a non-*esident individual engaged $" Repu$liCe,ent to *ende* enginee*ing se*vies o* te onst*ution o Paouse UCe,ent Silo P*o:et> Cou*t is not onvined pa",ent %as o* *etention ee o*te pu*ase o ,aine*" and e=uip,ent sine Repu$li Ce,ent p*esented

in evidene onl" its :ou*nal voue*> I,po*t <nt*" and Inte*nal Revenue donot atuall" *elet te said *etention value to o**o$o*ate te :ou*nalvoue*> Tus; it sould $e su$:et to %itolding o *edita$le AT>

- +M Claudius <nginee* - is a non-*esident o*eign o*po*ation; $ased in'e*,an"; %ose se*vies %e*e engaged $" Repu$li Ce,ent o* te e*etionand o,,issioning o Paouse #o> 3> Repu$li Ce,ent lai,s tat*elassiiation ent*" *o, KP*epaid I,po*tation Ca*gesK to a i6ed assetaount; KPP< <6pansionK; and not te atual pa",ent to +M Claudius

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<nginee*s in 1; $ut did not su$,it an" ote* suppo*ting dou,ents top*ove> Tus; assess,ent te*eon sall $e upeld>

$NI%N ;AN? %" THE PHILIPPINES v CIR

Ponente9 PALA#CA-<#RI<; J!ate P*o,ulgated9 Ma* 2; 2011

Topi9 P*es*iptive pe*iod and ta6 a,nest"

"ACTS: nion +an o te Pilippines is a o,,e*ial $aning o*po*ation;

dul" o*gani/ed and e6isting unde* Pilippine la%s> 8n &e$ 2(; 2007; aK)aive* o te !eense o P*es*iption nde* te Statute o Li,itations o te#IRC e6tending te 3-"ea* p*es*iptive pe*iod te assess,ent andFo*olletion o deiien" ta6es o* alenda* "ea* 2004 to !e 31; 2007 and to

June 30; 200. %as e6euted $" nion +an> 8n &e$ 1; 200.; nion +anavailed o te !a3 Amnesty unde* A 456$. !espite tat; nion +an*eeived a P*eli,ina*" Assess,ent #otie BKPA#K *o, te +IR; o* deiien"%itolding ta6es and !ST o* 2004; inlusive o su*a*ge; inte*ests ando,p*o,ise penalties>

Ate* evaluation o te PA#; nion +an volunta*il" paid te assess,ents o*%itolding ta6es on o,pensation; e6panded %itolding ta6es; inal

%itolding ta6es-R+ and inal %itolding ta6es- &C!>o%eve*; on te sa,e date; June 30; 200.; petitione* *eeived a &inalAssess,ent #otie BK&A#K *o, te +IR; assessing petitione* o te allegeddeiien" %itolding ta6es on o,pensation; e6panded %itolding ta6;inal %itolding ta6es on R+ and &C!; and !ST o* R+-Speial SavingsAount and &C! o* alenda* "ea* 2004>

8n Jul" 24; 200.; nion +an iled a &o*,al Lette* o P*otest on te g*oundtat on June 30; 200.; petitione* paid to te +IR te deiien" %itoldingta6es assess,ents on its R+ and &C! t*ansationsE and as *ega*ds te !STon Regula* T*ansations; Speial Savings Aount and &C! in te a,ountso P4;0(;2.>37; P1.;00;07>70 and P;71.;70>2; *espetivel";

petitione* inte*posed as a deense its avail,ent o te Ta6 A,nest" P*og*a,unde* A 456$.

CIR lai,s nion +an did not su$,it dou,ents tat %ill su$stantiate itsalleged avail,ent o ta6 a,nest"; te assess,ents against petitione* o*deiien" inal %itolding ta6 on its on-so*e ino,e and !ou,enta*"Sta,p Ta6 sould not $e anelled as avail,ent o ta6 a,nest" as not$eo,e inontesta$le; and &C! 8nso*e Ino,e is not e6e,pt *o,!ou,enta*" Sta,p Ta6>

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ISS$E: )8# nion +an is lia$le o* deiien" %itolding ta6es ono,pensation; e6panded %itolding ta6es; inal %itolding ta6es on itsR+ and &C!> )8# nion +an is lia$le to te deiien" !ST on its &C!>

DECISI%N: #8; #8

HELD: Te Assess,ent #oties o* deiien" %itolding ta6es ono,pensation; e6panded %itolding ta6; inal %itolding ta6 BR+ ; andinal %itolding ta6 B&C! %e*e issued $e"ond te 3-"ea* p*es*iptivepe*iodE onse=uentl"; said deiien" assess,ents sould ave $een o*de*edanelled and set aside>

Mo*eove*; *eo*ds also so% tat on June 30; 200.; petitione* paid tedeiien" assess,ents o* %itolding ta6es on o,pensation; e6panded%itolding ta6, inal %itolding ta6- R+; and inal %itolding ta6-&C!> Ape*usal o te PA# *eveals tat te a,ounts o deiien" assess,ents o*%itolding ta6es on o,pensation; e6panded %itolding ta6; inal%itolding ta6; and inal %itolding ta6-&C! a*e inlusive o penalties;

su as deiien" inte*est i,posed unde* &ection %54 of the IC of'447, asamended, *o, te date p*es*i$ed o* tei* pa",ents until June 30; 200.>Conside*ing tat petitione* paid te ao*e-,entioned deiien" assess,entson June 30; 200.; ten petitione*s pa",ent onstitutes ull pa",ent o saiddeiien" assess,ents> ene; %it ,o*e *easons tat te deiien"assess,ents o* %itolding ta6es on o,pensation; e6panded %itoldingta6; inal %itolding ta6-R+; and inal %itolding ta6- &C! sould $eanelled and set aside>

As *ega*ds te deiien" assess,ent o* !ST on R+-Speial SavingsAount; te issue is not novel as te sa,e as al*ead" $een *uled $" teSup*e,e Cou*t in a long line o ases> <ven p*io* to te passage o A 4%58,

a,ending &ection '6$ of the IC of'447 and *ena,ing it as &ection '74,Speial Savings !eposit Aounts; toug evidened %it pass$oos; a*eal*ead" su$:et to !ST; as te" a*e onside*ed e*tiiates o deposit $ea*inginte*est on %i !ST; unde* &ection '6$ of the IC of'447, as amended,an $e i,posed>

As to te deiien" assess,ent o* !ST on petitione*s &C!; %e ag*ee %itCIR tat altoug P9 '$8:, in *elation to evenue egulations '$-7#,p*ovides tat te net ino,e *o, o*eign u**en" deposit t*ansations sall$e su$:et to ? ta6; %i sall $e in lieu o all ta6es on said t*ansations;te p*ase Kin lieu o all ta6esK %as deleted in &ections %7/90/80 and %6/70/b0ofA 65%5, ote*%ise no%n as Kte #IRC o 17K; %i too eet on

Janua*" 1; 1.> Settled is te *ule tat a,end,ent $" deletion o e*tain%o*ds o* p*ases in te statute indiates tat te legislato*s intended toange te ,eaning o te statute> Tus; $" vi*tue o su deletion; evenueegulations '$-7#, %i i,ple,ented te old la%; is no longe* applia$le> Inote* %o*ds; te pa",ent o te 10? inal ta6 on &C! ino,e does note6e,pt petitione* *o, pa",ent o te !ST on su t*ansations>

Tat &C! ta6 e6e,ption *o, all ote* ta6es %as deleted $" te ICof'447, as amended, is $olste*ed $" te at tat on Ap*il 2.; 2004; te

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Cong*ess enated A 4%45 KAn At Resto*ing te Ta6 <6e,ption o 8so*e+aning nits B8+s and &o*eign Cu**en" !eposit nits B&C!s; A,endingo* te Pu*pose Setion 27B$ and Setion 2.; pa*ag*aps BAB4 and BAB7> ote #ational Inte*nal Revenue Code as A,endedK> Te at o Cong*ess in*esto*ing te ta6 e6e,ption o &C!s lea*l" so%s tat p*io* to teeetivit" o A 4%45, on Ma" 20; 2004; &C!s a*e su$:et to 10? inal ta6and not e6e,pt *o, te pa",ent o all ote* ta6es; as p*ovided in &ection

%7/90/80 and &ection %6;A0;70 of the IC of '447. 8te*%ise; o,,onsense ditates tat Cong*ess %ill not *esto*e an e6e,ption tat is al*ead"e6isting>

o%eve*; onside*ing tat te deiien" assess,ent o* !ST on &C!t*ansations against petitione* is o* ta6a$le "ea* 2004; sta*ting Ma" 20;2004; te date o eetivit" o A 4%45, petitione*s &!C t*ansations;e6ept net ino,e *o, su t*ansations; as ,a" $e speiied $" teSe*eta*" o &inane; a*e no% e6e,pt *o, all ta6es; inluding te p*esentassess,ent o* deiien" !ST; pu*suant to &ection ' of A 4%45, %ip*ovides o* an all inlusive e6e,ption *o, all ote* ta6es>

#ote tat on &e$*ua*" 1; 200.; nion +an availed o te Ta6 A,nest"unde* A 456$, &ection # of A 456$ p*ovides tat a ta6pa"e* %o availed ote ta6 a,nest" unde* &ection : of A 456$ and as ull" o,plied %it allits onditions sall $e i,,une *o, te pa",ent o ta6es; as %ell asadditions te*eto; and te appu*tenant ivil; *i,inal o* ad,inist*ativepenalties unde* te IC of '447, as amended, a*ising *o, te ailu*e to pa"an" and all inte*nal *evenue ta6es o* ta6a$le "ea* 200 and p*io* "ea*s>

Conside*ing tat !ST is one o te ta6es ove*ed $" te Ta6 A,nest"P*og*a, unde* A 456$, nion +an is i,,une *o, te pa",ent o ta6es;as %ell as additions te*eto; and te appu*tenant ivil; *i,inal o*ad,inist*ative penalties unde* te IC of '447, as amended, a*ising *o, its

ailu*e to pa" an" and all inte*nal *evenue ta6es o* ta6a$le "ea* 200 andp*io* "ea*s> Also note tat te one "ea* pe*iod allo%ed $" &ection 5 of A456$ to initiate p*oeedings to ove*tu*n te p*esu,ption o o**etness ote SAL# ad al*ead" p*es*i$ed> Te*e is no ote* *eou*se $ut to anelte deiien" assess,ents o* !ST on B1 R+-Regula* T*ansations on teg*ound tat te Assess,ent #otie %as issued $e"ond te p*es*iptive pe*iodto assess and in vie% o petitione*s avail,ent o Ta6 A,nest" unde* A456$< and B2 R+-Speial Savings Aount; and &C!; solel" in vie% onion +anDs avail,ent o te Ta6 A,nest" P*og*a, unde* RA 456$.

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3A&AN v CIR

Ponente9 PALA#CA-<#RI<; J

!ate P*o,ulgated9 Ap*il 4; 2011 Topi9 !a3 amnesty.

"ACTS: 5a,an Lai $eing a non-sto; non-p*oit eduational institution;%i ope*ates te <,ilio Aguinaldo College; is not su$:et to ta6es andduties on all its *evenues and assets; %i a*e used atuall"; di*etl" ande6lusivel" o* eduational pu*poses; as p*ovided unde* A*tile I; Setion4B3 o te 1.7 Pilippine Constitution> 8n Septe,$e* 1.; 200(; 5a,an *eeived a &inal Assess,ent #otie B&A#and %as assessed deiien" ta6es o P24;.;3>4 inlusive o inte*estand penalt">

8n Jul" 2; 200.; 5a,an iled an K8,ni$us Motion o* Coni*,ation oPetitione*s Rigts and I,,unities unde* te Ta6 A,nest" At o 2007ECanellation o Assess,entsE and )itd*a%al o Petition o* Revie%;K allegingtat te assess,ents against petitione* sould $e anelled sine it asal*ead" availed o te ta6 a,nest" unde* A456$.

Tus; on Ma" 2; 200; te Cou*t pa*tl" g*anted petitione*s K8,ni$usMotionK setting aside petitione*s deiien" assess,ents on ino,e ta6;

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value-added ta6 and dou,enta*" sta,p ta6 solel" in vie% o petitione*savail,ent o te Ta6 A,nest" unde* A 456$.

8n Septe,$e* 30; 200.; te Cou*t issued a *esolution g*anting 5a,anDs,otion and onside*ed te p*esent Petition o* Revie% as %itd*a%n in so a*as petitione*s deiien" ta6es on ino,e ta6; value- added ta6 anddou,enta*" ta6 a*e one*ned> Tus; te *e,aining deiien" pe*tains to

te inal %itolding ta6>

ISS$E=s: )o# 5a,an is lia$le o* deiien" ta6.

DECISI%N: No.

HELD: Te A,ended !eision dated &e$*ua*" 7; 2011 *ende*ed $" te CTA=n (ane; onside*ing te Petition &o* Revie% iled in C> T>A> as %itd*a%nsolel" in vie% o petitione*s avail,ent o te Ta6 A,nest" La% o 17; tea$ove-aptioned ase 1s no% onside*ed CL%SED and TER&INATED

CA'A3AN C%RN PR%D$CTS C%RP%RATI%N v CIR

Ponente9 ;A$TISTA6 5!ate P*o,ulgated9 Ap*il 11; 2011

Topi9 &iling o p*otest on ti,e

"ACTS: Caga"an Co*n P*oduts Co*po*ation is a do,esti o*po*ation> It isengaged in te $usiness o $u"ing; selling o* ote*%ise dealing in; at%olesale o* *etail; su goods as o*n sta*; o*n oil; o*n $*an; and ote**elated goods o si,ila* natu*e>

8n #ove,$e* 1.; 200.; Caga"an *eeived a &o*,al Lette* o !e,and dated#ove,$e* ; 200.; %it attaed !etails o !is*epanies and Assess,ent

#otie issued $" te Regional !i*eto* o +IR inding Caga"an allegeddeiien" e6panded %itolding ta6 in te total a,ount o P2;130;04>3inlusive o inte*est> Te*eate*; Caga"an p*otested te &o*,al Lette* o!e,and on #ove,$e* 21 ; 200.> CIR *eplied to te p*otest $" issuing a lette*dated !ee,$e* 3; 200. and *eeived $" Caga"an on !ee,$e* 22; 200.*eite*ating te de,and o* pa",ent o te assessed deiien" e6panded%itolding ta6>

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8n Janua*" 14; 200; Caga"an *eplied to te !ee,$e* 3; 200. lette* o teRegional !i*eto* *eite*ating its position in its lette* dated #ove,$e* 21;200.>CIR; t*oug te +IR Regional !i*eto*; again *eplied on Janua*" 21; 200 toCaga"ans lette* dated Janua*" 14; 200>

It ,ust also $e noted tat on Ma* ; 200; Caga"an again %*ote to CIR;

seeing a *eonside*ation o te Regional !i*eto*s position as ontained inis lette* o Janua*" 21; 200 and *e=uesting tat te sa,e $e *ealled andanelled and tat a ne% assess,ent $e issued o* a lesse* a,ount odeiien" %itolding ta6> Te sa,e ave*,ents %e*e late* on *eite*ated inCaga"ans lette* to CIR dated Ma* 10; 200> Ao*ding to Caga"an; it is dueto CIRs lette*-*epl" dated Jan 21; 200 tat it iled te instant Petition o*Revie% on Ma* 12; 200>

ISS$E: )8# Caga"anDs petition o* *evie% %as iled on ti,e>

DECISI%N: #o> Petition is !ISMISS<! o* aving $een iled late>

HELD: In gene*al; i a p*otest is denied; in %ole o* in pa*t; $" teCo,,issione* o* is dul" auto*i/ed *ep*esentative; te ta6pa"e* ,a" appealto te Cou*t o Ta6 Appeals %itin 30 da"s *o, date o *eeipt o te saiddeision; ote*%ise; te assess,ent sall $eo,e inal; e6euto*" andde,anda$le9 P*ovided; o%eve*; tat i te ta6pa"e* elevates is p*otest tote Co,,issione* %itin 30 da"s *o, date o *eeipt o te inal deision ote Co,,issione*s dul" auto*i/ed *ep*esentative; te latte*s deision sallnot $e onside*ed inal; e6euto*" and de,anda$le; in %i ase; tep*otest sall $e deided $" te Co,,issione*>

Counting *o, !ee,$e* 22; 200.; Caga"an ad until Janua*" 21; 200 o* 30da"s %itin %i to ile its :udiial appeal> o%eve*; instead o iling a

Petition o* Revie%; Caga"an iled on Janua*" 14; 200 its *epl" to te lette*issued $" *espondent *eite*ating its position in its p*otest> Caga"an iled teinstant Petition o* Revie% on Ma* 12; 200 onl"E o$viousl"; $e"ond te*egle,enta*" pe*iod p*ovided o* $" la%>

An MR o te denial o te ad,inist*ative p*otest does not toll te 30 -da"pe*iod to appeal to te CTA> ene; CIRDs denial o te p*otest as ontained inis lette* *eeived $" Caga"an on !ee,$e* 22; 200. as al*ead" $eo,einal and e6euto*" upon te e6pi*ation o te 30-da" pe*iod to appeal>

CTA is a ou*t o speial :u*isdition and as su it an tae ogni/ane onl"o su ,atte*s as a*e lea*l" %itin its :u*isdition> )ile te *igt to appeal

a deision o te Co,,issione* to te CTA is ,e*el" a statuto*" *e,ed"; te*e=ui*e,ent tat it ,ust $e $*ougt %itin 30 da"s is :u*isditional>

Caga"anDs ailu*e to o,pl" %it te 30-da" pe*iod p*ovided unde* teRevised Rules o te Cou*t o Ta6 Appeals as %ell as te #IRC %ould indeed$a* te appeal and tus; %ould eetivel" *e,ove te instant ase *o, tea,$it o tis Cou*ts :u*isdition>

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PHILE@ v CIR

Ponente: Palana-<n*i=ue/Date Promulgated: Ap*il 13;2011Toi!: Reund

"ACTS:Pile6 iled %it +IR its 8*iginal AT Retu*n o* te 2nd ua*te* o 200(> Tenit iled an A,ended AT Retu*n so%ing a total /e*o-*ated sales oPp2;17;4;10>(.; do,esti pu*ases o goods a,ounting toPp220;0.>2 %it input ta6 o Pp11;44;11>32>

Pile6 iled its lai, o* *eund o* ta6 *edit %it te one-stop-sop ente* ote !epa*t,ent o &inane in te a,ount o Pp11;70;(02>23>

!ue to CIRDs ination; Pile6 iled tis Petition o* Revie%

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P4ile8#s Contention:Pile6 is entitled to a *eund allegedl" *ep*esenting e6ess input ta6es o* te2nd =ua*te* o 200(

CIR#s Contention: Te lai, o *eund is still unde* investigation $" te +u*eau>

Te g*ant o lai, o* *eund is tanta,ount to an e6e,ption *o, ta6ation%i is onst*ued st*itl" against te lai,ant and in avo* o te ta6ingauto*it">

Te ta6es sougt to $e *eunded %e*e paid in ao*dane %it la%

ISS$E: )ete* o* not Pile6 is entitled to a *eund o* issuane o TCC in te totala,ount o Pp11;70;(02>23; allegedl" *ep*esenting e6ess input o* 2nd

=ua*te* o 200(

DECISI%N:Petition dis,issed o* aving $een iled late>

HELD:In o*de* to $e entitled to a *eund o* issuane o TCC o input AT paid;petitione* ,ust p*ove te ollo%ing9

B1 Clai,ant ,ust $e a AT-*egiste*ed pe*sonEB2 Te*e ,ust $e /e*o-*ated o* eetivel" /e*o-*ated salesEB3 Input ta6es %e*e inu**ed o* paidEB4 Su input ta6es a*e att*i$uta$le to said /e*o-*ated o* eetivel"

/e*o-*ated salesEB Said input ta6es %e*e not applied against an" output AT lia$ilit"E

andB( Te lai, o* *eund %as ailed %itin te p*es*iptive pe*iod

Pile6 sould $e a$le to p*ove te a$ove *e=ui*e,ents

Pu*suant to Se 112 #IRC; petitione* ,a" appl" o* *eund %itin 2 "*s *o,te lose o te ta6a$le =ua*te* %en te *elevant sales %e*e ,ade>

Te su$:et lai, ove*s 2nd =ua*te* o 200(; Pile6 ad until June 30;200.;%itin %i to ile its ad,inist*ative lai, o* *eund> Sine te lai, oPile6 %as iled Jan 10;2007; it %as iled on ti,e>

o%eve*; not%itstanding te ti,el" iling o te ad,in lai,; CTA deniedte petition o* aving $een iled late; %a" $e"ond te pe*iod p*es*i$ed inSe 112 #IRC12 %i p*ovides tat te Co,,issione* as one und*ed

12 SEC // Refunds or Tax Credits of Input Tax. -

(A) Zero-Rated or Effectively Zero-Rated Sales.- an" AT-*egiste*ed pe*son; %ose sales a*e /e*o-*ated o* eetivel" /e*o-*ated ,a"; %itin t%o B2 "ea*s ate* te lose o te ta6a$le =ua*te* %en tesales %e*e ,ade; appl" o* te issuane o a ta6 *edit e*tiiate o* *eund o *edita$le input ta6 due o*paid att*i$uta$le to su sales; e6ept t*ansitional input ta6; to te e6tent tat su input ta6 as not $eenapplied against output ta69 P*ovided; o%eve*; Tat in te ase o /e*o-*ated sales unde* Setion 10(BAB2BaB1; B2 and B+ and Setion 10. B+B1 and B2; te aepta$le o*eign u**en" e6ange p*oeedste*eo ad $een dul" aounted o* in ao*dane %it te *ules and *egulations o te +ango Sent*al ng

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t%ent" B120 da"s *o, te su$,ission o suppo*ting dou,ents to deidete lai, o* *eund> In ase o ull o* pa*tial denial; o* ination; te ta6pa"e*,a" appeal to CTA; %itin ti*t" B30 da"s *o, *eeipt o te deision o**o, te lapse o te one und*ed t%ent" B120 da" pe*iod>

To illust*ate9 &*o, Jan 10; 2007 Bdate o lai,; te CIR ad 120 da"s ; o*until Ma" 10;2007; %itin %i to deide te lai,> )itin 30 da"s *o, te

lapse o 120-da" pe*iod; o* *o, ,a"11until June ; 2007; Pile6 sould aveelevated its lai, o* *eund to CTA> Tus; Pile6 ad until June %itin %ito elevate its lai, on te g*ound o CIRDs ination> o%eve*; *eo*ds so%edtat Pile6 iled te p*esent Petition on June 27;200.>

Pile6D ailu*e to o,pl" %it te 30-da" pe*iod $a**ed te appeal and%a**ants te dis,issal o te petition; as te CTA as not a=ui*ed

:u*isdition ove* te sa,e

PCS% v CIR

Ponente: Palana-<n*i=ue/Date Promulgated: Ap*il 1;2011Toi!: I,position o !ou,enta*" Sta,p Ta6

"ACTS:Pilippine Ca*it" S%eepstaes 8ie BPCS8 ope*ates $" vi*tue o itsa*te*; RA 11(> It is te p*inipal gove*n,ent agen" to *aise and p*ovide

Pilipinas B+SP9 P*ovided; u*te*; Tat %e*e te ta6pa"e* is engaged in /e*o-*ated o* eetivel" /e*o-*ated sale and also in ta6a$le o* e6e,pt sale o goods o p*ope*ties o* se*vies; and te a,ount o*edita$le input ta6 due o* paid annot $e di*etl" and enti*el" att*i$uted to an" one o te t*ansations; itsall $e alloated p*opo*tionatel" on te $asis o te volu,e o sales> *ala%(;) Capital oods.- A AT-*egiste*ed pe*son ,a" appl" o* te issuane o a ta6 *edit e*tiiate o**eund o input ta6es paid on apital goods i,po*ted o* loall" pu*ased; to te e6tent tat su inputta6es ave not $een applied against output ta6es> Te appliation ,a" $e ,ade onl" %itin t%o B2 "ea*s ate* te lose o te ta6a$le =ua*te* %en tei,po*tation o* pu*ase %as ,ade>(C) Cancellation of VAT Registration. - A pe*son %ose *egist*ation as $een anelled due to*eti*e,ent *o, o* essation o $usiness; o* due to anges in o* essation o status unde* Setion 10(BC

o tis Code ,a"; %itin t%o B2 "ea*s *o, te date o anellation; appl" o* te issuane o a ta6 *edite*tiiate o* an" unused input ta6 %i ,a" $e used in pa",ent o is ote* inte*nal *evenue ta6es>(D) $eriod %it#in %#ic# Refund or Tax Credit of Input Taxes S#all &e 'ade. - In p*ope* ases; teCo,,issione* sall g*ant a *eund o* issue te ta6 *edit e*tiiate o* *edita$le input ta6es %itin oneund*ed t%ent" B120 da"s *o, te date o su$,ission o o,pete dou,ents in suppo*t o teappliation iled in ao*dane %it Su$setions BA and B+ e*eo>In ase o ull o* pa*tial denial o te lai, o* ta6 *eund o* ta6 *edit; o* te ailu*e on te pa*t o teCo,,issione* to at on te appliation %itin te pe*iod p*es*i$ed a$ove; te ta6pa"e* aeted ,a";%itin ti*t" B30 da"s *o, te *eeipt o te deision den"ing te lai, o* ate* te e6pi*ation o te oneund*ed t%ent" da"-pe*iod; appeal te deision o* te unated lai, %it te Cou*t o Ta6 Appeals>(E) 'anner of iving Refund. - Reunds sall $e ,ade upon %a**ants d*a%n $" te Co,,issione* o* $"is dul" auto*i/ed *ep*esentative %itout te neessit" o $eing ounte*signed $" te Cai*,an;Co,,ission on audit; te p*ovisions o te Ad,inist*ative Code o 1.7 to te ont*a*" not%itstanding9P*ovided; Tat *eunds unde* tis pa*ag*ap sall $e su$:et to post audit $" te Co,,ission on Audit>

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unds o* ealt p*og*a,s and a*ities o national a*ate*> It lie%ise aste gene*al po%e* and auto*it" to old and ondut a*it" s%eepstaes*aes; lotte*ies; a,ong ote*s>

&e$ 200; a Lette* o Auto*it" %as issued $" te La*ge Ta6pa"e*s Se*vieBLTS; ino*,ing PCS8 tat te *evenue oie*s a*e auto*i/ed to e6a,inePCS8Ds $oos o aounts and tei* aounting *eo*ds o* !ST o* te pe*iod

o Jan 1;200. to !e 31; 200.>

Sept 200; PCS8 *eeived a P*eli,ina*" Assess,ent #otie BPA# *o, teLTS; ino*,ing PCS8 o its alleged deiien" !ST o* alenda* 200.>

Te*eate*; PCS8 *eeived a &o*,al Lette* o !e,and and &inal Assess,ent#oties B&A#> Ao*ding to &A#; PCS8 %as assessed deiien" !ST in tea,ount o Pp777;7(;42>72>

PSC8 iled its p*otest lette* to te &A# allenging te legal $ases o teassess,ents ,ade $" te LTS !ivision>

&e$ 2010; PCS8 *eeived +IRDs &inal !eision> PCS8 appealed tis deision $"

%a" o te instant Petition o* Revie%

PCS%#s Contention: PSC8 is e6e,pt *o, !ST on te sale o lotto tiets pu*suant to its a*te*;RA 11( BPCS8 Ca*te*

PCS8 Ca*te* e6e,pts o*se *aes and sale o tiets in s%eepstaes *o, allta6es; e6ept tat ea tiet sall $ea* a t%elve entavo inte*nal *evenuesta,p> Tus; it is not lia$le o* deiien" !ST on te sale o lotto tiets o*ta6a$le "ea* 200.>

PCS8 Ca*te* %as no *epealed; a,ended o* ,odiied $" te *epealing lause

o RA .424>

CIR#s Contention: PCS8 is estopped *o, *aising an" a*gu,ent to tat eet t*oug volunta*"o,pliane %en it paid !ST on its lotte*" tiets al$eit t*oug an e**oneous$asis o te *ate>

PCS8 as $een dul" app*ised o its deiien" !ST lia$ilities o* ta6a$le "ea*200.

ISS$E:)ete* PCS8 is lia$le o* !ST on te sale o* Lotto tiets and ote* tiets

o* ote* ga,es $ased on Se 10 #IRC

DECISI%N:Petition is pa*tl" g*anted>

PCS8 is o*de*ed to pa" CIR Pp 70; 1;420>72; *ep*esenting deiien" !ST;inluding su*a*ge and inte*est o* ta6a$le "ea* 200.

HELD:

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Se 10 #IRC13 i,poses !ST on ea :ai-alai; o*se *ae tiet; lotto o* ote*auto*i/ed nu,$e* ga,es; %ile Se 4 o RA 11( e6p*essl" e6e,pts *o,all ta6es onl" o*se *aes and sale o s%eepstaes tiets> PCS8Ds a*te*doesnDt p*ovide tat te sale o lotto tiets is e6e,pt *o, pa",ent ota6es> Te e6p*ess inlusion o o*se *aes and sale o s%eepstaes tiets isa lea* e6lusion o an"ting un,entioned as e6e,pt *o, all ta6es> ad telegislatu*e intended te sale o lotto tiets to $e e6e,pted *o, all ta6es; it

ould ave easil" done so $" lea* and onise language>

PCS8 is lia$le to pa" !ST on te sale o lotto tiets> Pu*suant to Se 10#IRC; PCS8 sall pa" a !ST o ten entavos B>pp0>10 o* eve*" one pesoBPp1>0 o* an e=uivalent *ate o 10? on te sale o ea lotto tiet>

Te $asis o te 10? !ST is te ost o te lotto tiet> Reo*ds so% tatPCS8 paid te !ST on te sale o lotto tiets $ased on te net a,ount osales onl"> It sould te*eo*e; $e eld lia$le to pa" te die*ene $et%eente g*oss sales and net a,ount o sales>

PCS8 is also lia$le to pa" su*a*ge and deiien" inte*est o* te late

pa",ent o !ST

LA S$ERTE CI'AR v CIR

Ponente: Palana-<n*i=ue/

16 SEC /+2 Sta"p Tax on (ai-Alai) *orse Racing Tic+ets) lotto or ,t#er Aut#oried Nu"&ersa"es. * 8n ea :ai-alai; o*se *ae tiet; lotto; o* ote* auto*i/ed nu,$e* ga,es; te*e sall $eolleted a dou,enta*" sta,p ta6 o Ten entavos BP0>109 Provided, Tat i te ost o te tiete6eeds 8ne peso BP1>00; an additional ta6 o Ten entavos BP0>10 on eve*" 8ne peso BP1>00; o**ational pa*t te*eo; sall $e olleted>

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Date Promulgated: Ap*il 2(; 2011Toi!:

"ACTS: Te Se*eta*" o &inane BS8& issued RR #p> 1-7 p*es*i$ing te speiita6 ,etod in o,puting te e6ise ta6 on iga*s and iga*ettes andi,ple,enting Se 14 #IRC>

Te RR lassiies $*ands iga*ettes into9 a> dul" *egiste*ed o* e6isting $*andiga*ettesE $> ne% $*andsE > va*iant o a $*and; as deined unde* Se 2>

In June 1; ate* te su*ve" onduted pu*suant to te RR; La Sue*teDs ne%$*ands9 Ast*o Mentol; Ast*o &ilte* ing; Ast*o Mentol ing; Me,pisMentol 100s and Me,pis &ilte* ing %e*e lassiied unde* te Pp 1>00speii ta6; pe* pa> Te said e6ise ta6 %as auto,atiall" in*eased $"12? o* Pp1>12 pe* pa on Jan 2000; pu*suant to Se 14 #IRC

In &e$ 2003; S8& issued RR #o -2003 a,ending RR #o 1-7; p*es*i$ing te,anne* $" %i te u**ent net *etail p*ie o te ne% $*ands o iga* and

iga*ettes and te va*iants o ne% $*ands an $e esta$lised o* pu*poses odete*,ining tei* *espetive speii ta6 lassiiation> Te ne% RR p*ovideso* a pe*iodi *evie% and dete*,ination o te u**ent ne% *etail p*ie o ne%$*ands at an inte*val o 2 "*s

Anote* RR %as issued; RR 22-2003 in Aug 2003> Tis *esulted to te*elassiiation o La Sue*teDs ne% $*ands *o, Pp1>12 to Pp>2 pe* pae6ise ta6 $*aet

La Sue*te iled a o,plaint o* in:untion %it p*a"e* o* TR8 %it RTC;assailing te onstitutionalit" o RR -2003 and 22-2003; in so a* as te"*e=ui*e pe*iod *elassiiation o ne% $*ands o* $eing violative o unio*,it"

and e=ual p*otetion lauses o te Constitution>

RTC dela*ed te RRs unonstitutional>

)ile te ivil ase %as pending; La Sue*te ad $een allegedl" pa"ing tee6ise and AT o Pp >(0> In total it ad paid Pp27;;010>.4

!e 200; La Sue*te iled an ad,inist*ative lai, o* *eund %it +IR o*Pp27;;010>.4> +eause o te ination o +IR; La Sue*te iled tisPetition o* Revie%

La Suerte#s Contention:

It is entitled to a *eund o te e6ise and AT ta6es it e**oneousl" paid>

Te Revenue Regulations a*e unonstitutional in so a* as te" *e=ui*e tepe*iodi *elassiiation o ne% $*ands o* $eing violative o te unio*,it"and e=ual p*otetion lauses o te Constitution

CIR#s Contention:La Sue*teDs lai, is still unde* investigation> It ,ust p*ove tat te allegeda,ount *eunded %as e**oneousl" olleted

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ISS$E:)ete* o* not La Sue*te is entitled to te *eund o te e6ise and AT ta6esit paid

DECISI%N Petition is pa*tl" ,e*ito*ious> La Sue*te is entitled onl" te *eund on <6iseta6; not on te AT

HELD Te Sup*e,e Cou*t al*ead" eld in S8& v La Sue*te Ciga*14; te RRs in=uestion a*e void in so a* as te" e,po%e* +IR to pe*iodiall" *evie% o* *e-dete*,ine te u**ent net *etail p*ies o iga*ettes o* pu*poses o updatingtei* ta6 lassiiation eve*" 2 "ea*s>

La Sue*teDs lai, %as iled on ti,e and it as ull" su$stantiated it lai, o**eund on te e6ise ta6> o%eve*; it ailed to p*esent evidene; su as*eeipts and invoies; to p*ove its input AT *edits>

Tus; te *eund %ill onl" $e on te e**oneousl" olleted e6ise ta6>

T%LED% P%9ER C%&PAN3 v CIR

1 Secretar, of ;inance v La Suerte 7i*ar< 8: S7' 92<8/-89

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Ponente: +autistaDate Promulgated: Ma" 13;2011Toi!: Clai, o* *eund o* issuane o TCC

"ACTS Toledo iled an ad,inist*ative lai, o *eund and issuane o ta6 *edit

e*tiiate BTCC o its unutili/ed input A5 on do,esti pu*ases ogoodsFse*vies and i,po*tation o goods *elated to 0-*ated sale o se*vies ine a,ount o Pp 14;24;013>27

CIR issued a Lette* o Auto*it" BLA dated &e$ 2004; ten issued aP*eli,ina*" Assess,ent #otie BPA#> Te PA# alleged tat te*e a*edisallo%ed input ta6es; un*eogni/ed output AT on sales tat *esulted todeiien" AT pa"a$leE and tat ailu*e to pa" te *egist*ation ee plussu*a*ge and inte*est>

Ap*il 200(; a &o*,al Lette* o !e,and %it details o dis*epanies andassess,ent noties %as *eeived $" Toledo> Ma" 200(; Toledo iled a p*otest

on te assess,ents>

Jul" 200(; Toledo *eeived a lette* *o, +IR *e=uesting dou,enta*"evidene o* p*ope* evaluation o te p*otest> CIR o%eve*; ailed to *esolve

ToledoDs p*otest; tus; Toledo iled a Petition o* Revie% %it CTA &e$ 2007

Toledo#s Contentions:Ci* as lost te *igt to assess te deiien" AT and annual *egist*ationees $" *eason o p*es*iption> Se 203 #IRC p*ovides tat +IR is given tepo%e* to assess ta6es %itin 3 "ea*s ate* te last da" p*es*i$ed $" la% o*te iling o te *etu*n> Sine it did not sign a %aive* o te deense op*es*iption; te assess,ent as al*ead" p*es*i$e>

Te assess,ent is void o* ailu*e o CIR to lea*l" and p*ope*l" ino*,petitione* o te ats and la% on %i te assess,ent is ,ade

CIR#s Contentions: Ate* a to*oug investigation o* ta6a$le "ea* 2002; Toledo as ino,esu$:et to AT *eali/ed *o, te sale o s*ap to va*ious $u"e*> Te*e a*esales su$:et to AT %it ,issing invoies %i a,ounted to Pp1.7;3(4;41>00 %i *ep*esent .? o te total sales su$:et to AT o*2002> Te*e %as a su$stantial unde* dela*ation o ta6a$le sales; *eeipts; o*ino,e %i onstitute a p*i,a aie evidene o *audulent *etu*n> Tis; +IRis g*anted te *igt to assess %itin 10 "ea*s ate* disove* o te alsit"

ISS$E)ete* o* not te assess,ent ,ade $" CIR is valid

DECISI%N#o> Te assess,ents o* deiient AT and annual *egist*ation ee issued $"CIR a*e anelled>

HELD

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Te lette* o de,and and te details te*ein %e*e not suiient to ao*d Toledo o te oppo*tunit" to intelligentl" ans%e* te assess,ent and p*epa*eo* dou,enta*" evidene>

CIR ailed to indiate te $asis o te disallo%ane o te input ta6es> &u*te*;CIR negleted to state te sedule o te supposed disallo%ed input TA

Te Sup*e,e Cou*t in CIR v <n*on Su$i eld tat9 HTe la% *e=ui*es tat telegal and atual $ases o te assess,ent $e stated in te o*,al lette* ode,and and assess,ent notie> Su annot $e p*esu,ed>

Rega*ding te pe*iod o* assess,ent9 te 3 "ea* pe*iod to assess o,,enes*o, te date o atual iling o te *etu*n o* *o, te last da" p*es*i$ed $"la% o* te iling o su *etu*n; %ieve* o,es late*> Te*eo*e; te lastda" to ile and pa" AT is on te 2 t da" ollo%ing te lose o ea ta6a$le=ua*te*> I te *etu*n %as iled $e"ond te p*es*i$ed pe*iod; te 3 "ea*s sall$e ounted *o, te da" te *etu*n %as iled> Te &A# issued $" CIR %as$e"ond te pe*iod> Te 10 "ea* pe*iod e*e %ill not appl" sine CIR ailed top*ove *aud>

>Sine te assess,ent is invalid; it ant $e te $asis to ollet ta6

Rega*ding te annual ee9 it %as p*oved tat Toledo ad al*ead" paid tesa,e>

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;$SINESS PR%CESS %$TS%$RCIN' (;P%) v CIR

Ponente: Cotango-Manalastas

Date Promulgated: &a7 /62//Toi!: Clai, o* *eund o* issuane o TCC

"ACTS+P8 iled its &inal Co*po*ate Annual Ino,e Ta6 Retu*n BITR on Ma* 10;200(o* ta6a$le "ea* ended !e 31;2004> It *eleted a ta6a$le ino,e o Pp12;2.;33>; %i *esulted in an ino,e ta6 due a,ounting to Pp4;137;073>00> Te ta6 ino,e due %as oset against te Pp 13;1;311p*io* "ea*Ds e6ess *edits and *edita$le ta6es o* all te =ua*te*s o 2004;te*e$" leaving an e6ess ta6 *edit o* ove*pa",ent o Pp ;3.2;23.>00

&o* te ove*pa",ent; +P8 opted to $e *eunded>

&o* ta6a$le "ea* ended !e 31;200; +P8 iled its ITR on Ma" 2; 200( %e*eit dela*ed a ta6a$le ino,e o Pp 1.;(4(;..4>00; %i *esulted in anino,e ta6 due a,ounting to Pp(;0(0;237> Ate* deduting *o, its ino,eta6 due against it *edita$le ta6es o* all te =ua*te*s o 200; +P8 %as let%it an ove*pa",ent o Pp 3;.71;407>

Again; +P8 ose to $e *eunded o* te ove*pa",ent o Pp 3;.71;407>

Ma* 2007; +P8 iled a lai, o* *eund o* issuane o TCC o* ta6a$le "ea*s2004 and 200 in te agg*egate a,ount o Pp13;23;(4> Sine +IR did notat on te lai,; +P8 iled a Petition o* Revie% %it CTA

;P%#s Contention:+P8 lai,s tat du*ing te ta6a$le "ea* 2004; it ad *edita$le ino,e ta6es%iteld in te agg*egate a,ount o Pp12;7;043>00 and tat ate* o-setting its 2004 ino,e ta6 due *o, te p*io* "ea*Ds e6ess *edits and apo*tion o te 2004 ta6 *edits; its still ad e6ess *edita$le %itoldingino,e ta6es *o, 2004 in te a,ount o Pp;3.2;23.>00> 8n te ae ote ITR; it indiated its intention o iling a lai, o* *eund> Te sa,e is t*ue%it te ta6a$le ino,e o* 200

CIR#s Contention: Te lai, is still unde* investigation> +P8 ailed to p*ove tat te su$:et ta6

%as e**oneousl" o* illegall" olleted

ISS$ES:B1 )ete* o* not te lai, o *eund %as iled %itin te 2 "ea* p*es*iptivepe*iodB2 )ete* o* not +P8 is entitled o* te *eund

DECISI%NPetition denied> Ruled in avo* o CIR

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CHE0R%N H%LDIN'S INC v CIR

Ponente: Palana-<n*i=ue/Date Promulgated: June 2; 2011Toi!9 Pe*iod %itin %i to ile appeal o* lai,s o input AT *eund BSe>112-C

"ACTS9Petitione* Cev*on oldings In Bo*,e*l" Calte6 Asia Ltd is a R8 liensedas su %it te S<C> It is also *egiste*ed %it te +IR as a AT ta6pa"e*>

It iled %it te +8R its ua*te*l" AT *etu*ns o* 200 on9 Ap*il 22; 200E Jul"

22; 200EJan 2; 200(E and Ap* 2; 200(>

8n Ma" 17; 200(; it iled its ad,inist*ative lai, o* *eund o* unutili/edinput AT o* te ou* =ua*te*s o 200> !ue to te +IRDs ination; it iled %itte CTA a petition o* *evie% on Ap*il 20; 2007>

Rega*ding Petitione* and RespondentsD ontentions9 Te*e %e*e seve*ale**o*s assigned $" Petitione* and *aised $" Respondent; $ut te ase %asdisposed on te issue o ti,eliness>

ISS$E9 )o# te petition sould $e dis,issed o* $eing iled out o ti,e>DECIS%N9 5<S>

HELD9Se> 112 o te #IRC p*ovides9BA66BC

In CI vs Aichi; te Cou*t *uled tat te seond pa*ag*ap o S>112 Benvisions t%o sena*ios9 B1 %en a deision is issued $" te CIR $eo*e telapse o te 120-da" pe*iodE and B2 %en no deision is ,ade ate* te 120-da" pe*ios> In $ot instanes te ta6pa"e* as 30 da"s %itin %i to ile anappeal %it te CTA>

Reo*d o te ase so% tat Cev*on iled its ad,in lai, o* *eund o* te4 =ua*te*s o 200 on Ma" 17; 200( %itin te 2-"ea* p*es*iptive pe*iod>&*o, tis date; te CIR as 120 da"s o* until Septe,$e* 14; 200( %itin%i to deide te lai,> )itin 30 da"s *o, te lapse o su pe*iod Bo**o, Septe,$e* 1; 200( to 8to$e* 1; 200; petitione* sould aveeleveated its lai, to te CTA pu*suant to Setion 112 B> o%eve*; it dis soonl" on Ap*il 20; 2007 o* 1.7 da"s $e"ond te 30-da" p*es*i$ed pe*iod oappeal>

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In >er and Company vs C!A; te Sup*e,e Cou*t as eul%s tat %ile te*igt to appeal a deision o te Co,,issione* to te CTA is ,e*el" astatuto*" *e,ed"; neve*teless; te *e=ui*e,ent tat it ,ust $e $*ougt%itin 30 da"s is :u*isditional>

;%RDEN CHE& 0 CIR

Ponente: +autistaDate Promulgated: June .;2011Toi!:

"ACTSMa* 2004; +o*den *eeived P*eli,ina*" Assess,ent #otie BPA# o* allegeddeiient ino,e ta6; %itolding ta6 on o,pensation; <)T; &)T; AT; AT

on *o"alt"; !ST; inte*est and o,p*o,ise penalties o* ta$le "ea*s 2001 and2002

Ap*il 12; 2004; +o*den iled in position pape*s *euting said deiienies

Ap*il 23;2004; +o*den *eeived a &o*,al Lette* o !e,and dated Ap*il 12;*e=uesting it to pa" te deiien"Ma" 2004; +o*den p*otested te &o*,al Lette* o de,and> !ue to +IRDsination; it iled a Petition o* Revie% %it CTA

&e$ 200; +o*den *eeived CIRDs &inal !eision on !isputed Assess,entB&!!A date #ov 2004

;orden#s Contentions:+o*den lai,s tat it is Ki,,une *o, te pa",ent o ta6es; as %ell asadditions te*eto; and te appu*tenant ivil; *i,inal o* ad,inist*ativepenaltiesK unde* te #IRC o 17; e6ept %itolding ta6es; pu*suant toSetion (Ba o R>A> #o> 4.0> It lai,s tat te assess,ents o* ino,e ta6;AT; AT on Ro"alt"; and !ST o* te "ea*s 2001 and 2002 ave al*ead"$een anelled $" its avail,ent o ta6 a,nest">

+o*den lai,s tat it paid te +IR on Ma" ; 200. te total a,ount oPl;3.;.4>27 allegedl" *ep*esenting its total deiien" %itolding ta6lia$ilit" o* 2001 and 2002; inlusive o inte*est and penalties>

It p*esented in evidene te Ce*tiiate o #o 8utstanding Ta6 Lia$ilit"s1 B8C#3TC000000340( dated Ma* 1(; 200 to p*ove tat it as no outstandinginte*nal *evenue ta6 lia$ilit" as o Ma* 1(; 200

CIR#s Contentions: Te assess,ents %e*e ,ade in ao*dane %it la%> Te allegeddis*epanies %e*e disove*ed upon investigation

ISS$E:

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9INTERNIT> ASS%CIATES INS$RANCE ;R%?ERS C%RP 0 CIR

Ponente9 +autistaPromulgated9 June ; 2011Toi!9 #on-lia$ilit" o an insu*ane $*oe* Bnot insu*ane agentV o* AT onp*e,iu, pa",ents *eeived *o, lients and *e,itted to insu*aneo,panies

"ACTS:

Petitone* )inte*nit/ Co*p> is a do,esti o*po*ation> 8# 8t> 27; 2004;*espondent CIR issued a Lette* #otie to )inte*nit/ advising ot tat $ased onte pa*tial tall" *o, o,pute*i/ed ,ating onduted $" te +IR; t is lia$leo* deiient ta6es due tounde* dela*ed sales in te a,ount oP1;(4;2.>2>

8n &e$*ua*" 22; 200(; te CIR issued anote* lette* advising )inte*nit/ tatit is lia$le o* deiien" ino,e ta6 and AT o* te "ea* 2003; and*e=uested an ino*,al one*ene>

At te ino*,al one*ene; )inte*nit/ a*gued tat as an insu*ane $*oe*; itdid not unde*-dela*e its ino,e $eause te undela*ed sales %e*e due all

to te insu*ane o,panies; not to itsel as a $*oe*>

PA# %as issued against )inte*nit/ on Ma* 27; 2007> In te PA#; it %asound lia$le o* deiien" ta6es in te a,ount o P2>.MWW o* te ta6a$le"ea* 2003> A &A# %as te*eate* issued *eite*ating te indings in te PA#>

)inte*nit/ iled its lette*-p*otest; to %i *espondent CIR issued an &!!A onAugust 12; 200; *eite*ating te indings as stated in te &A#>

)inte*nit/ iled its Petition o* Revie% %it te CTA on Septe,$e* 14; 200p*a"ing tat te &!!A $e set aside>

?internit@s contention9 Te alleged unde*-dela*ed ino,e o P1M*ep*esent p*e,iu, pa",ents %i te" *eeived as $*oe*-o-*eo*d odie*ent insu*ane o,panies> As su; te" %e*e not *e=ui*ed to dela*e aspa*t o its ta6a$le ino,e>

ISS$E: )8# )inte*nit/; an insu*ane $*oe*; is lia$le o* te assesseddeiien" ino,e ta6 and AT o* te "ea* 2003 Bi>e>; )8# an insu*ane$*oe* is lia$le o* AT on te p*e,iu, pa",ents it *eeives *o, lients and*e,its to te insu*ane o,paniesX

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DECISI%N9 #8> Petition g*anted>

Se> 301 o P! (12 deines and Hinsu*ane $*oe* as Han" pe*son %o o*o,pensation; o,,ission o* anote* ting o value ats o* aids in an",anne* in soliiting; negotiating o* p*ou*ing te ,aing o an" insu*aneont*at o* in plaing *is o* taing out insu*ane; on $eal o an insu*edote* tan i,sel>

In Anscor Insurance (ro)ers v CI and C!A; te SC eld tat an insu*ane$*oe* is die*ent *o, an insu*ane A'<#T sine te $*oe* ats as aH,iddle,an $et%een te insu*ed and te insu*ane o,pan" and soliitsinsu*ane unde* no e,plo",ent *o, an" speial o,pan" and plaes o*de*so insu*ane %it te o,pan" seleted $" te insu*ed; o* in te a$sene osu a seletion; $" te $*oe*> &*o, te o*egoing; an insu*ane $*oe* does#8T *eeive an" ino,e *o, te insu*ane o,pan" $ut de*ives its ino,e,ainl" *o, o,,issions o* insu*ane poliies tat it plaes %it teinsu*ane o,panies upon *e,ittane o p*e,iu,s $" te lients>

Tis *esolved; o% sould ino,e de*ived $" insu*ane +R8<RS $e ta6edX

Ree*ene to RR #o> 2-.9

HSetion 2>7>2> Ino,e Pa",ent Su$:et to C*edita$le )itolding Ta6 andRates P*es*i$ed te*eon; - <6ept as e*ein ote*%ise p*ovided; te*e sall$e %iteld a *edita$le ino,e ta6 at te *ates e*ein speiied o* ealass o pa"ee *o, te ollo%ing ite,s o ino,e pa",ents to pe*sons*esiding in te Pilippines9

666

B' Ino,e pa",ents to e*tain $*oe*s and agents> G 8n g*oss o,,issions

o* se*vie ees o usto,s; insu*ane; sto; *eal estate; i,,ig*ation ando,,e*ial $*oe*s and ees o agents o p*oessional ente*taine*s G Tenpe*ent B10?>

e*e; it is lea* tat )inte*nit/ ino,e o,es *o, o,,issions; and notp*e,iu, pa",ents> ene; $asis o* ta6 sould $e te o,,issions it*eeives and not te p*e,iu, pa",ents it *eeives and *e,its to teinsu*ane o,pan"> Su sales onstitute pa*t o te ta6a$le ino,e o teinsu*ane o,panies; and not )inte*nit/ as a $*oe*>

Conse=uentl"; onl" su o,,issions *eeived $" )inte*nit/ a*e su$:et toAT sine te $*oe* is su$:et to output ta6 onl" on te o,,ission it

*eeives and not on te p*e,iu, pa",ents> It is te insu*ane o,pan" tatis lia$le o* te AT on te p*e,iu, pa",ents and sould issue te AT*eeipt %i an $e te $asis o AT input *edit>

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REP$;LIC CE&ENT v CIR

Ponente: Cotango- Manalastas

Date Promulgated: Aug 2; 2011Toi!: !elin=uen" inte*est

"ACTS: Tis deision ove*s te ,otions o* *eonside*ation o Repu$li and CIR oCTA o*de* o* Repu$li to pa" delin=uen" inte*est and CIRDs de,and o*o,p*o,ise penalt"> BPlease see o*iginal deision a$ove

Reu<li!#s Contention: Repu$li lai,s tat it dul" iled p*ope* *etu*ns o**e,ittane o %itolding AT on pa",ents o* se*vies *ende*ed to non-*esidents; ene te 3 "* p*es*iptive pe*iod applies>

CIR as until Jan 2;2003 to assess deiien" %itolding AT o* ta6a$le "*1; %i is 3 "ea*s *o, te date o iling te AT *etu*n on Jan 2;2000>

Te CIRDs assess,ent notie o* te said deiien" ta6 dated &e$ 2004;%i it *eeived Ma* 2004; is $e"ond te 3 "ea* p*es*iptive pe*iod o*assess,ent and olletion o ta6es

Repu$li alleged tat pa",ents %e*e ,ade to non-*esidents9 <le6 <nginees;+M Claudius <nginees; M* Jadg,ann and *upp Pol"sius; p*io* to 1;ene; said t*ansations sould not ave $een inluded in te deiien"assess,ent

CIR#s Contention:

Te investigation onduted $" its *evenue oie*s dislosed tat e*tainpa",ents o se*vies to non-*esident o*eign o*po*ations %e*e not su$:etedto C*edita$le )itolding on AT and tat Repu$li ailed to su$,it p*oo;ene te assess,ent %as sustained>

Repu$liDs ailu*e to ile a *etu*n o* te ta6es assessed ,e*its santion o teCo,p*o,ise Penalt" in lieu o instituting a *i,inal ation

ISS$ES:

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)ete* o* not Repu$li is lia$le to te delin=uen" inte*est a*ge;su*a*ge and o,p*o,ise penalt"

DECISI%N:Pa*tiall" '*anted>

Te *eoning date o* te delin=uen" inte*est anged to Janua*" 200>

HELD:Laing an" evidene to onlude tat petitione* iled te *etu*n ando**espondingl" paid te *edita$le %itolding AT o*; o* on $eal o tesaid non-*esident o*eign o*po*ations; CIR as 10 "ea*s *o, te disove*" ote o,ission as p*ovided in Se 222Ba #IRC; to assess te petitione*>

Te*eo*e; tis p*esent ase as not p*es*i$ed> Repu$li ailed to suppo*tsits allegations tat pa",ents to te ,entioned non-*esident o*po*ations%e*e ,ade p*io* to 1>

)ell settled is te *ule tat ta6 assess,ents a*e p*esu,ed to $e o**etunless te ont*a*" is so%n and te $u*den o p*oo *ests upon te ta6pa"e*to ove*o,e tis p*esu,ption> Repu$li ailed to disa*ge tis $u*den; tus

te assessed deiien" %itolding AT sould $e sustained>

&u*te*; Repu$li is lia$le to pa" 2? su*a*ge in ao*dane %it Se24.BA #IRC> Te la% is lea* tat te i,position o su*a*ge is ,andato*">

Te alleged good ait o te ta6pa"e* is not suiient :ustiiation o*seeing e6e,ption *o, te pa",ent o su*a*ge>

Su*a*ge is an ove*a*ge o* e6ation i,posed $" la% as an addition to te,ain ta6 *e=ui*ed to $e paid> It is not *eall" a penalt" as used in *i,inal la%$ut a ivil ad,inist*ative santion p*ovided as a saegua*d o* te p*otetiono te State *evenueE it is o,pensato*" in natu*e

Te i,position o deiien" inte*est is also santioned unde* Se 24B+#IRC and delin=uen" inte*est unde* Se 24BC #IRC> Te la% allo%s tei,position o tese 2 inds o inte*ests si,ultaneousl">

CTA *eonside*ed te *eoning date o* te pa",ent o delin=uen"inte*est9 it sould $e assessed on te due date appea*ing in te notie andde,and o Co,,issione*> As it appea*s; te &A# stated Jan 31; 200>

As *ega*ds CIRDs ontention on te i,position o o,p*o,ise penalt"; tesa,e sould onl" $e applied i te ta6pa"e* and CIR $ot onsented> In tisase; te*e is no so%ing tat $ot pa*ties *eaed a o,p*o,iseag*ee,ent; ene; su penalt" annot $e sustained

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DECISI%N9 5<S> Assess,ent ailed to o,pl" %it Se; 22. and is te*eo*evoid> Petition g*anted; and )a**ant o !ist*aint andFo* Lev" anelled>

HELD9$reli"inarily /as $etition for Revie/ filed out of ti"e0 N,.Respondent CIR ontends tat ate* *eeiving te denial o its p*otest; PS

iled an MR %it te CIR and te*eo*e; its *e,ed" is to ile an appeal %it teCTA *ate* tat te petition o* *evie%>

In te p*esent ase; it is te R!Ds deision %i is $eing appealed $eo*e teCIR> Te *egulation i,ple,enting Se> 22. speiiall" states tat i teta6pa"e* appeals te R!Ds deision %it te CIR; te o*,e*Ds deision does#8T onstitute a inal deision appeala$le $eo*e te CTA> Petitione* PSo**etl" appealed te deision o te CIR; and not tat te R! $eo*e teou*t and ti,el" iled its Petition o* Revie% on August 23; 3007 ate* *eeipto te )a**ant o !ist*aintFLev" on Jul" 2; %i at an $e onside*ed adenial o its p*otest>

Re validity of t#e assess"entIt %as appa*ent tat te &o*,al Lette* o !e,and ailed to state te legal andatual $ases o* te assess,ent> BRep*oduing te dou,ent ve*$ati,; itonl" stated te o,putations and dis*epanies $ut te*e *eall" %as nostate,ent *e legal $asesY

Te evidene tat te CR t*ied to so% to p*ove tat e app*ised tePetitione* o su legal $ases %as a ,e,o*andu, tat %as atuall" a ,e*einte*nal ,e,o*andu, issued to te +IRDs Regional !i*eto*; and not to tepetitione* PS>

)it te inding tat te assess,ent %as not valid; te ote* issues *aised

%e*e dee,ed ,oot and no longe* disposed o>

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NIPP%N E@PRESS 0 CIR

Ponente: +autistaDate Promulgated: August 10;2011Toi!: Issuane o Ta6 C*edit Ce*tiiate

"ACTS8n Ap*il 2; 20024; Jul" 2; 2002; 8to$e* 2; 2002(; and Janua*" 27; 2003;petitione* iled its ua*te*l" AT Retu*ns o* te ou* =ua*te*s o 2002 %it

te +IR; t*oug te <let*oni &iling and Pa",ent S"ste, B<&PS

8n Ap*il 22; 2004; petitione* iled an ad,inist*ative lai, o* te issuane ota6 *edit e*tiiate BTCC in te a,ount o P24;(44;0(>.(; *ep*esenting tee6essFunused input ta6es att*i$uta$le to its /e*o-*ated sales

+eause o +IRDs ination; #ippon iled tis p*esent Petition o* Revie%

CIR#s Contentions: Te lai, is still unde* investigation

ISS$E: )ete* o* not petitione* is entitled to te issuane o ta6 *edit

e*tiiate in te a,ount o Pp 24;(44;0(>.(; *ep*esentinge6essFunutili/ed input ta6 att*i$uta$le to its /e*o-*atedsales o* ta6a$le "ea*2002>

DECISI%N:PARTIALL3 'RANTED CIR is e*e$" %RDERED to ISS$E A TA@ CREDITCERTI"ICATE to petitione* in te *edued a,ount o T9% &ILLI%N SI@H$NDRED "%$RTEEN TH%$SAND T9% H$NDRED NINET3*SI@ PES%SAND .=/ 22 (P6B/.6+B.)6 *ep*esenting e6essFunutili/ed input ATatt*i$uta$le to its /e*o-*ated sales o* ta6a$le "ea* 2002>

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HELDSe 112 #IRC1; enu,e*ated te *e=uisites o* te issuane o ta6 *edite*tiiate o* *eund o input ta6 due o* paid att*i$uta$le to /e*o-*ated o*eetivel" /e*o-*ated sales>

in o*de* to $e entitled to a *eund o* issuane o ta6 *edit e*tiiate;

petitione* ,ust o,pl" %it te ollo%ing *e=uisites91 > tat te*e ,ust $e /e*o-*ated o* eetivel" /e*o-*ated salesE2> tat input ta6es %e*e inu**ed o* paidE3> tat su input AT pa",ents a*e di*etl" att*i$uta$le to /e*o-*ated

sales o* eetivel" /e*o-*ated salesE4> tat te input AT pa",ents %e*e not applied against an" output

AT lia$ilit"E and> tat te lai, o* *eund %as iled %itin te t%o-"ea* p*es*iptive

pe*iod>

Rega*ding te ti,eliness o iling te lai,9 Te Sup*e,e Cou*t in AtlasConsolidated 2ining

and 9evelopment Corporation vs> Commissioner of Internal Revenue22; eldtat te *eoning o te t%o-"ea* p*es*iptive pe*iod is *o, te date oiling o te ua*te*l" AT Retu*n> In tis ase; te ea*liest =ua*te* ove*ed$" te instant lai, is te i*st =ua*te* o 2002 o* %i petitione* iled itso*iginal ua*te*l" AT Retu*n on Ap*il 2; 2002> Counting *o, tis date; $otte ad,inist*ative and te :udiial lai,s iled on Ap*il 22; 2004 and Ap*il 23;2004; *espetivel"; %e*e iled %itin te t%o-"ea* pe*iod

As to te 1st *e=uisite o* te issuane o TCC; #ipponDs AT Retu*ns o* teou* =ua*te*s o 2002 so%ed tat it ad te ollo%ing ta6a$le; e6e,pt; and/e*o-*ated salesF*eeipts> o%eve*; in its lai, o* ta6 *edit and Petition o*Revie%; petitione* dela*ed a total sales o P2;033;((>.3> It sould $e

noted tat te*e is a dis*epan" $et%een petitione*s sales as lai,ed andas *epo*ted in its ua*te*l" AT Retu*ns

in o*de* o* te suppl" o se*vies to $e AT /e*o-*ated unde* Setion 1 0.B+B2 o te #IRC o 17; as a,ended Oten Setion 1 02B$ B2 o te #IRC o177; as a,ended; te ollo%ing *e=uisites ,ust $e ,et9

1> te se*vies ,ust $e ote* tan p*oessing; ,anuatu*ing o**epaing o goodsE2> pa",ent o* su se*vies ,ust $e in aepta$le o*eign u**en"

aounted o* in ao*dane %it te +SP *ules and *egulations; and3> te *eipient o su se*vies is doing $usiness outside te

Pilippines>

inds tat petitione* o,plied %it te i*st *e=uisite as te *eigt o*%a*dingse*vies it *ende*s a*e not in te sa,e atego*" as Kp*oessing;,anuatu*ing o* *epaing o goodsK> Lie%ise; te seond *e=uisite %as,et> &o* *eigt o*%a*ding se*vies *ende*ed in te "ea* 2002; petitione**eeived o*eign u**en" pa",ents; %i %e*e aounted o* in ao*dane

1 =SEC. 112. Refunds or Tax Credits of Input Tax.-

(! Zero-rated or Effectively Zero-rated Sales. -n, VTre*istered person< )ose sales are ero-rated or effectivel, ero-rated may,

within two (2) years after the close of the taxable quarter when the sales were made, aly for the issuance of a tax credit

certificate or refund of creditable inut tax due or aid attributable to such sales, !!!!!

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%it te +SP *ules and *egulations; as evidened $" $illing state,ents; salesinvoies; in%a*d *e,ittanes; and $an *edit advies>

o%eve*; petitione* ailed to o,pl" %it te e=uall" signiiant ti*d*e=uisite> )ile te S<C Ce*tiiates o #on-Regist*ation31 su$,itted $"petitione* so% tat te alleged non-*esident o*eign lients o petitione* a*enot *egiste*ed o*po*ations in te Pilippines; te sa,e do not p*ove tat

su o*po*ations a*e non-*esidents Kdoing $usiness outside te Pilippines>K Tus; o* ailu*e to p*ove tat te *eigt o*%a*ding se*vies it *ende*ed o*te "ea* 2002 %e*e ,ade to non-*esident o*eign lients doing $usinessoutside te Pilippines; petitione*s pu*po*ted sales te*e*o, in te a,ounto P.3;.31;(4>7. annot =uali" o* AT /e*o-*ating unde* Setion 1 0.B+B2 o te #IRC o 17; as a,ended> Conse=uentl"; te input AT allegedl"att*i$uta$le to said sales annot $e *eunded>

Inas,u as onl" a po*tion o petitione*s /e*o-*ated sales is p*ope*l"su$stantiated; onl" te po*tion o te input AT lai,ed att*i$uta$le to tesu$stantiated /e*o-*ated sales %ill $e onside*ed o* *eund>

#ippon as suiientl" p*oven tat it is entitled to te issuane o ta6 *edite*tiiate o**esponding to its unutili/ed input AT o* ta6a$le "ea* 2002 inte *edued a,ount o P2;(14;2(>.4

PILIPINAS SHELL PETR%LE$& C%RP v C%&& &%RALES

Promulgated9 Aug 2(; 2011

Ponente9 Cotango-ManalastasToi!: Indi*et onte,pt

"ACTS9 Te su$:et petition e*ein is a Petition o* Conte,pt iled $" petitione* Sell;a do,esti o*p; against *espondent +8CDs Co,,issione* Mo*ales ; andColleto* Tan and !o,ingo>

Sell alleged tat te +8C oiials %e*e guilt" o indi*et onte,pt ate* tesaid usto,s oiials allegedl" eld a p*ess one*ene; in ont*avention ote CTA Resolution dated Ma* 12; 2010 %i advised te pa*ties to CTACase #o> .004; also $et%een te Pa*ties e*ein; to H*e*ain *o, disussing

te ,e*its o te ase in te ,edia as it ,a" $e onside*ed onte,ptuous $"te Cou*t> Sell alleged; tat not onl" dis te *espondents old a p*essone*ene in dis*ega*d o te ou*tDs o*de*s; $ut te*ein aused teP*esiding Judge i i,p*op*iet" and engaged in un%a**anted attas againstSell>

ISS$E9 )8# te *espondent +8C oiials a*e lia$le o* indi*et onte,ptunde* Setions 3B$ and Bd o Rule 71; RoC>

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5ARDINE LL%3D v CIR

Ponente: Cotango-ManalastasDate Promulgated: Sept 23; 2011Toi!: Clai, o* *eund o* issuane o TCC

"ACTS:8n Ap*il 1(; 2007; Ja*dine iled its Annual Ino,e Ta6 Retu*n o* ta6a$le "ea*200(2 ; $ut su$se=uentl" iled an a,ended Annual Ino,e Ta6 Retu*n3 on

Ap*il 2(; 2007; so%ing a Ta6 Pa"a$le Bove*pa",ent o Pp 0;31;123>(.>

8n Ap*il 3; 200; Ja*dine iled %it te La*ge Ta6pa"e*s Audit andInvestigation !ivision o te +u*eau o Inte*nal Revenue a lai, o* *eund oits pu*po*ted unutili/ed *edita$le ta6 %iteld o* te "ea* 200( in tea,ount o P.;021 ;037>00>4

+eause o CIRDs ination; Ja*dine iled %it CTA te instant Petition o*Revie% on Ap*il 1; 200>

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5ardine#s Contentions: Ja*dine ontends tat it %as in a net loss position o* ta6a$le "ea* 200(E tus;it ailed to ull" utili/e te p*io* "ea*s e6ess *edits o P43;(;70>00 andte *edita$le %itolding ta6 o* 200( in te a,ount oP.;021 ;037>00>

It ,aintains tat it is entitled to $e *eunded o* issued a ta6 *edit e*tiiate

o* its unutili/ed *edita$le %itolding ta6 o* te "ea* 200(

CIR#s Contentions: Te lai, is unde* investigation>

Ja*dine ,ust so% tat it as ull" o,plied %it te *e=uisites to sustain alai, o* *eund o* ta6 *edit o unutili/ed *edita$le ta6 *edits> Tese*e=uisites a*e as ollo%s 9

a> Tat te lai, o* *eund %as iled%itin te t%o-"ea* pe*iodE$> Tat te at o %itolding is esta$lised $" a op" o a state,ent

dul" issued $" te pa"o* B%itolding agent to te pa"ee so%ingtea,ount paid and te a,ount o ta6 %iteld te*e*o,E and

> Tat te ino,e upon %i te ta6es %e*e %iteld in te *etu*no te *eipient>

ISS$E)ete* o* not Ja*dine is entitled to a *eund o* issuane o ta6 *edite*tiiate in te a,ount o P.;021 ;03 7 >00; allegedl" *ep*esenting itsunutili/ed *edita$le ta6 %iteld o* ta6a$le "ea* 200(>

DECISI%NPetition denied> Ruled in avo* o CIR

HELD

i a o*po*ate ta6pa"e* as e6ess ta6 *edits o* ove*paid ino,e ta6 in agiven ta6a$le "ea*; te sa,e ,a" eite* $e *eunded in te o*, o as o*ta6 *edit e*tiiate; o* a**ied ove*Fapplied to te sueeding ta6a$le "ea*suntil ull" utili/ed>

Te t%o options a*e in te alte*native and te oie o one p*eludes teote*> Tis is so $eause o te i**evoa$ilit" *ule e,$odied in te lastsentene o Setion 7( o te #IRC o 17; as a,ended; %e*e te p*aseKsu option sall $e onside*ed i**evoa$le o* tat ta6a$le pe*iodK ,eanstat te option to a**" ove* te e6ess ta6 *edits o a pa*tiula* ta6a$le"ea* an no longe* $e *evoed>

In te p*esent ase; Ja*dine opted to $e *eunded $" ,a*ing te $o6 KTo $e*eundedK in its o*iginal and a,ended Annual Ino,e Ta6 Retu*ns>

Reo*ds so% tat petitione* iled its o*iginal Annual Ino,e Ta6 Retu*n21 onAp*il 1(; 2007> Tis ,eans tat petitione* ad until Ap*il 1; 200 %itin%i to ile a lai, o* *eund o* ta6a$le "ea* 200(; $ot in tead,inist*ative and :udiial levels> Ja*dineDs ad,inist*ative and :udiial lai,sall %itin te p*es*iptive pe*iod>

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Reo*ds *eveal tat Ja*dine ailed to p*ove tat it did not a**" ove* andFo*appl" te lai,ed e6ess *edita$le %itolding ta6es to te sueeding=ua*te*s o 2007; and tat te ino,e; *elated to te e6ess *edita$le%itolding ta6es; %as *epo*ted in petitione*s *etu*n>

Ja*dine sould ave p*esented its ua*te*l" Ino,e Ta6 Retu*ns o* te i*st;seond; and ti*d =ua*te*s o 2007 in o*de* o* te Cou*t to ase*tain tat

petitione* did not a**" ove* te 200( e6ess *edita$le %itolding ta6es tote su$se=uent ta6a$le =ua*te*Fs>

Lie%ise; Ja*dine ailed to esta$lis te e6istene o its p*io* "ea*s e6ess*edits in te a,ount o P43;(;70>00; *o, %i te a,ount o Mini,u,Co*po*ate Ino,e Ta6 BMCIT due o* 200( %as applied o* *edited> It is*uial o* Ja*dine to so% tat indeed it ad enoug p*io* "ea*s e6ess*edits to ove* its MCIT lia$ilit"E i not; te said MCIT lia$ilit" sall $ededuted *o, petitione*s 200( *edita$le %itolding ta6es> Petitione*sould ave su$,itted te Ce*tiiates o C*edita$le Ta6es )iteld atSou*e and Annual Ino,e Ta6 Retu*ns o* p*io*

5ea*s

Ja*dine sould ave su$,itted dou,ents su as; $ut not li,ited to; leaseont*ats; $*eado%n o te *ental e6pense pe* ino,e ta6 *etu*n; $oos oaounts su as gene*al :ou*nal; detailed gene*al ledge*; sales :ou*nal; salesinvoiesF$illing state,ents; oiial *eeipts; p*io* "ea*s ino,e ta6 *etu*n o*an" ote* dou,ent %e*e$" te Cou*t an ve*i" tat it p*ope*l" *epo*tedte ino,e *elated to te lai,ed C)T eite* in te u**ent o* p*io* "ea*>

Ja*dines nono,pliane %it te ti*d *e=uisite is atal to its lai,>

Clai,ant as te $u*den o p*oo to esta$lis te atual $asis o is o* e*lai, o* ta6 *edit o* *eund> Ta6 *eunds a*e in te natu*e o ta6e6e,ptions> As su; te" a*e *ega*ded as in de*ogation o sove*eign

auto*it" and to $e onst*ued strictissimi *uris against te pe*son o* entit"lai,ing te *eund>

LISP*II L%CAT%RS# ASS%CIATI%N INC vs CIR

Ponente9 Cotango-ManalastasPromulgated9 Sep 22; 2011Toi!9 T%o-"ea* p*es*iptive pe*iod o* lai,s o* *eund unde* Setions 204B and 20; in te ase o e**oneousl" %iteld *edita$le %itolding ta6>

"ACTS9Petitione* Lisp-II is a non-sto; non-p*oit assoiation o*gani/ed unde*Pilippine la%s; *eated to Hadvane and p*o,ote te o,,e*ial;eono,i ; eduational and soial inte*ests and %ell-$eing o te ,e,$e*s o

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LISP-II Indust*ial Pa* BHSiene Pa* in OCala,$a; and te gene*al %ela*eo te o,,unit"E to tae pa*t in deli$e*ations; onside*ations; and deision;gove*n,ent o* ote*%ise; aeting te eono,i lie o te ,e,$e*s o teo,,unit" and aving *elations; di*et o* indi*et; to t*ade; o,,e*e andindust*">

8n Ap*il 13; 2007; Lisp iled its Annual ITR o* 200(; *eleting no ino,e ta6

lia$ilit" allegedl" $eause its ino,e is e6e,pt *o, ta6> Late* on; ate* aninte*nal audit i*a 200.-ea*l" 200; it lea*ned tat te*e %e*e +IR &o*,s2307 tat %e*e not *eleted in te 200( ITR; and tat one o its ,e,$e*-loato*s e**oneousl" %iteld ta6es *o, its *evenues e6e,pt *o, ino,eta6>

8n Ma* 4; 200; Lisp iled an ad,in lai, o* *eund o te e**oneousl"%iteld ta6 o* 200( a,ounting to P21.;42; iting as legal $ases Ses> 7(;204; and 22 o te Ta6 Code and Se> 2>.>3B+ o RR2-.>

ISS$E: )8# Lisp is entitled to te *eund Bi>e> )8# it is e6e,pt *o, ino,eta6>

DECISI%N: #8; due to p*es*iption> Petition dis,issed>

HELD:A a*eul stud" o Setion 7(1( Bused as $asis $" Lisp *eveals tat it isapplia$le onl" to a o*po*ation lia$le to ta6 unde* Se> 27; and in ase it isentitled to a ta6 *edit o* *eund; te e6ess a,ount is so%n on te inalad:ust,ent *etu*n> e*e; Lisp lai,s e6e,ption unde* Setion 30 and tat allits ino,e is e6e,pt> It also does not so% an" e6ess a,ount on its 200(ITR as in at; it dela*ed no ino,e ta6 lia$ilit" o* tat "ea* and teallegedl" e**oneousl" %iteld *edita$le ta6 %as not so%n te*ein>

Te*eo*e; Setion 7( is not applia$le>

o%eve*; te allegedl" e**oneousl" %iteld *edita$le ta6 ,a" instead $e*eunded unde* Setions 204 B and 22; %i ave $een settled in tis

:u*isdition to gove*n all inds o *eund o inte*nal *evenue ta6es> Se> 204B applies to ad,inist*ative lai,s iled %it te CIR; and 22 *ee*s to

:udiial ations o* *eove*" o ta6 e**oneousl" olleted; iled %it te CTA>o%eve*; $ot ations ,ust $e iled %itin te t%o-"ea* pe*iod *o, te dateo pa",ent o te ta6>

e*e; sine te lai, pe*tains to *edita$le ino,e ta6 e**oneousl" %iteld;Setions 204 B and 22 ,ust $e *ead togete* %it Se> 2>. o RR 2-. as

1/ SEC. "#. Final Adjustment Return. - >ver, corporation lia#le to tax under Section 29 sall file a finalad$ust+ent return coverin* te total taxa#le inco+e for te precedin* calendar or fiscal ,ear.

?f te su+ of te @uarterl, tax pa,+ents +ade durin* te said taxa#le ,ear is not e@ual to te total tax due

on te entire taxa#le inco+e of tat ,ear< te corporation sall eiter

(! Pa, te #alance of tax still dueA or

("! 7arr,-over te excess creditA or

(7! "e credited or refunded )it te excess a+ount paid< as te case +a, #e.

?n case te corporation is entitled to a tax credit or refund of te excess esti+ated @uarterl, inco+e taxes

paid< te excess a+ount so)n on its final ad$ust+ent return +a, #e carried over and credited a*ainst te

esti+ated @uarterl, inco+e tax lia#ilities for te taxa#le @uarters of te succeedin* taxa#le ,ears.

xxx

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a,ended $" Se> o RR 17-2003> +ased on tese *egulations; te *eoningo te t%o-"ea* p*es*iptive pe*iod %ould $e te date o ,ontl" *e,ittaneo te lai,ed *edita$le %itolding ta6es o* Janua*" to !ee,$e* 200(>

Te last ,ont ove*ed $" te su$:et lai, is !ee,$e* 200(; %i unde*RR 2-.; ,ust $e paid on o* $eo*e Janua*" 1; 2007 o* not late* tan Janua*"20; 2007 in ase o avail,ent o <&PS> Te*eo*e; ounting te t%o-"ea*pe*iod *o, tese dates; Lisp ad onl" until Janua*" 1; 200; o* until Janua*"

20; 200 at te ,ost; to ile its lai, o* *eund o*e !ee,$e* 200( $ot%it te CIR and te CTA> Sine te lai, %as iled onl" on Ma* 4; 200and te su$se=uent appeal iled %it te CTA on Ap*il 13; 200; LispsDslai,s o* te ,onts o Janua*"-!ee,$e* 200( ad al*ead" p*es*i$ed>

PHILIPPINE NATI%NAL ;AN? (PN;) v CIR

Ponente: +autistaDate Promulgated Sep 30;2011Toi!: Clai, o* *eund o* issuane o TCC

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Te p*esentation o te sueeding Annual Ino,e Ta6 Retu*n is notsuiient to esta$lis tat petitione* did not appl" its lai,ed unutili/ed*edita$le %itolding ta6es o* te i*st t*ee =ua*te*s o 200(>

Sine ta6 *eunds a*e in te natu*e o ta6 e6e,ptions; and te sa,e a*e*ega*ded as in de*ogation o sove*eign auto*it"E ene; te sa,e sall $e

onst*ued strictissimi *uris against te pe*son lai,ing su e6e,ption> Te*eo*e; te ta6pa"e* as te $u*den o p*oving tat it is entitled to itslai,>

$NI%IL C%RP vs CIR

Ponente9 Cotango-ManalastasDate Promulgated9 8t 4; 2011Toi!9 Mandato*" natu*e o issuane o te PA# unde* Setion 22.

"ACTS:

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Petitione* ni8il is a do,esti o*po*ation> 8n Janua*" 2(; 200; it *eeived a&o*,al Lette* o !e,and and &A# inding it lia$le o* deiien" %itoldingta6 on o,pensation and deiien" e6panded %itolding ta6 o* te "ea*ending !ee,$e* 31; 200>

ni8il iled its p*otest on &e$*ua*" 2; 200 and su$,itted its suppo*tingdos on Ap*il 24; 200> It te*eate* iled te instant Petition o* Revie% on

#ove,$e* 20; 200 ate* te CIR ailed to at on its p*otest and te lapse ote 1.0-da" pe*iod>

8ut o te seve*al issues identiied $" te Pa*ties Bsu as p*es*iption;validit" o te &A#; et; tis ase %as *esolved on te issue o te*e=ui*e,ent o te issuane o a PA#>

ISS$E9 )8# te ailu*e $" te CIR to issue a PA# voids te assess,ents,ade>

DECISI%N9 5<S> Assess,ents voidE Cou*t inds o* petitione* ni8il>

HELD9Setion 22. o te #IRC p*ovides9

- )en te Co,,issione* o* is dul" auto*i/ed *ep*esentative indstat p*ope* ta6es sould $e assessed; e sall i*st noti" te ta6pa"e*o is indingsY Band ten enu,e*ates %en su PA# sall not $e*e=ui*ed

- Tat ta6pa"e*s sall $e ino*,ed in %*iting o te la% and te ats on%i te assess,ent is ,adeE ote*%ise te assess,ent sall $evoid>

Co*olla*" to S> 22. is Setion 3 o RR 12- %i deines te due p*oess*e=ui*e,ent in te issuane o assess,ents>

Appa*ent *o, tese p*ovisions a*e te *e=ui*e,ents tat ,ust $e o$se*vedto ono*, %it te *e=ui*e,ents o* p*oedu*al p*oess vital to te validit" ote assess,ent91 Sending o a notie o ino*,al one*ene to te TP ao,panied $" aSu,,a*" o &indings o* Repo*t o InvestigationE2 I te CIR o* is *ep; ate* te ino*,al one*ene; inds tat ta6es sould$e assessed; te TP %ill $e notiied in %*iting>in te o*, o a PA#> Te PA#%ill state te $asis o te assess,entE3 TP given 1 da"s *o, *eeipt o PA# to ,ae a *epl">E ailing so; a o*,allette* o de,and assess,ent notie sall $e issued alling o* pa",ent o te

TPDs ta6 lia$ilit"E

4 I TP disag*ees o* %ises to p*otest; it ,ust send p*otest to +IR stating*easons te*eo* and su$,itting su p*oo as neessa*"> Te assess,ent$eo,es a disputed assess,ent on %i te CIR ,a" *ende* a deision>

Te issuane o a PA# is indispensi$le *e=ui*e,ent Bunless alling unde* tee6e,ptions p*ovided in Setion 22.> Citing te SC in CIR v Met*o Sta*; HYsending o Pan to te ta6pa"e* to ino*, i, o te assess,ent ,ade is $utpa*t o te die p*oess *e=ui*e,ent in te issuane o a deiien" ta6assess,entY te %o*d Hsall in su$setion 3>1>2 des*i$es te ,andato*"natu*e o te se*vie o te PA#>

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In tis ase; ni8il denies *eeiving te PA#> Te*eo*e; it is inu,$ent on*espondent CIR to p*ove tat *eeipt $" ni8il o te PA#> Tis it ailed to do>BIt onl" oe*ed in evidene a d*at Pan dated #ove,$e* 27; 200. $ut ailed top*ove *eeipt $" petitione* te*eo eite* t*oug pe*sonal se*vie o* ,ail>

&ailu*e to o,pl" %it te PA# *e=ui*e,ent @ denial o due p*oess @ void

assess,ents>

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DIV 3 2011 Cases