Date of Promulgation 4-Jan-11 7-Jan-11 13-Jan-11 20-Jan-11 21-Jan-11 27-Jan-11 27-Jan-11 31-Jan-11 4-&e$-11 4-&e$-11 14-&e$-11 1(-&e$-11 17-&e$-11

1.-&e$-11 21-&e$-11 2.-&e$-11 17-Ma*-11 22-Ma*-11 4-Ap*-11 11-Ap*-11 13-Ap*-11 17-Ap*-11 2(-Ap*-11 13-Ma"-11 1(-Ma"-11 1.-Ma"-11 2-Jun-11 .-Jun-11 2-Jun-11 2-Aug-11 4-Aug-11 10-Aug-11 2(-Aug-11 (-Sep-11 22-Sep-11 23-Sep-11 30-Sep-11 4-81t-11 7-81t-11

Case Title PAL v CIR San Miguel v CIR Pilipinas Total v CIR Avon v CIR Mindanao S oppping v !avao Caga"n v #TC Caga"n v PL!T Sta$le%oods v CIR 'oulds v CIR Mone"line v CIR !iageo v CIR )ine$*enne* v CIR +a*ge C e*"l Ann v Co,, oCusto,s '*and Pla/a 0otel Inte*pu$li1 '*oup v CIR 0avi v CIR Repu$li1 v CIR 3nion +an4 v CIR 5a,an v CIR Caga"an Co*n v CIR P ile6 v CIR PCS8 v CIR La Sue*te v CIR Toledo v CIR Avon v CIR +P8 v CIR C ev*on v CIR +o*den C e, v CIR )inte*nit/ v CIR Repu$li1 v CIR 3PS v CIR #ippon v CIR S ell v Co,, Mo*ales Su,isetsu v CIR Lisp v CIR Ja*dine v CIR P#+ v CIR 3nioil v CIR Avon v CIR

Su$,itted $"9 Iona Jali:ali; '*et1 en Mond*agon; +ian1a +a1ani PHILIPPINE AIRLINES (PAL) v CIR Ponente: Palan1a-<n*i=ue/

Date Promulgated: Jan 4; 2011 To i!: Re-und o* Issuan1e o- Ta6 C*edit Ce*ti-i1ate "ACTS: 8n Jul" 200(; PAL ente*ed into a C a*te* Ag*ee,ent %it 8))A to t*anspo*t 2.. passenge*s -*o, Manila to +ang4o4; and $a14 to Manila -o* t e 1ont*a1t p*i1e o- P p 1(;411;700 PAL issued 2 invoi1es -o* t e -ollo%ing values9 1> P p 1(;411;700 2> P p 121;2.2 +ot invoi1es %e*e paid $" 8))A %it t e -ollo%ing dedu1tions9 2? C*edita$le In1o,e Ta6 @ P p 330;(77>7. 7? &inal AAT @ P p .2(;(32>47 P p 17;377;423>77 In e--e1t; It paid a total o- P p 17;377;423>77 Initiall"; PAL t*ied to *e1ove* t e 7? -inal AAT -*o, 8))A> 8))A *e-used to pa" $e1ause t e sa,e %as al*ead" *e,itted to t e +IR 8n Aug 200.; PAL -iled %it t e o--i1e o- t e CIR a %*itten *e=uest -o* a *e-und o- P p .(2;(32>47; *ep*esenting t e 7? &inal AAT %it eld $" t e 8ve*seas )o*4e*s )el-a*e Ad,inist*ation B8))AC -*o, P p 1(;732;7.2 $illed $" PAL to 8)) unde* its C a*te* Ag*ee,ent> In vie% o- CIRDs ina1tion; PAL -iled :udi1ial 1lai, -o* *e-und %it CTA> PAL#s Contention: PAL is a AAT *egiste*ed 1a**ie*; su$:e1t to /e*o pe*1ent B0?C AAT; unde* Se1tion 10. B+CB(C #IRC It e**oneousl" paid t e total a,ount o- P p .2(;(32>47; *ep*esenting t e 7? &inal AAT %it eld $" 8))A; t e*e-o*e; t e said a,ount s ould $e *e-unded to it CIR#s Contention: PAL is not entitled to t e *e-und o- t e alleged unapplied 1*edita$le in1o,e ta6 %it eld $e1ause petitione* PAL -ailed to p*ove t e -ollo%ing9 a> t at t e 1*edita$le %it olding ta6 a,ounting to P p .2(;(32>47 is dul" suppo*ted $" valid Ce*ti-i1ate o- C*edita$le Ta6 )it eld at Sou*1e $> t at t e allegedl" %it eld ta6es %e*e a1tuall" *e,itted to t e +IR 1> t at PAL -ailed to dis1 a*ge its $u*den o- p*oving its entitle,ent to a *e-und> Clai,s -o* *e-und a*e 1onst*ued st*i1tl" against t e 1lai,ant -o* t e sa,e pa*ta4e t e natu*e o- e6e,ption -o*, ta6ation> ISS$E: ) et e* o* not PAL is entitled to t e *e-und o- P p .2(;(32>47; *ep*esenting t e 7? -inal AAT %it eld $" 8))A unde* t ei* C a*te* Ag*ee,ent

DECISI%N: Cou*t *uled in -avo* o- petitione* PAL CIR is o*de*ed to *e-und o* to issue a ta6 1*edit 1e*ti-i1ate in -avo* o- PAL in t e total a,ount o- P p .2(;(32>47> HELD: Pu*suant to Se1tion 10. B+C o- #IRC 1 and Se1tion 4>10.-7 o- Revenue Regulations #o> 1(-20072; t e t*anspo*t o- passenge*s $" a do,esti1 ai* 1a**ie* is a t*ansa1tion su$:e1t to /e*o-pe*1ent B0?C AAT *ate> T e 2 p*es1*i$ed *e=uisites a*e9 B1C t at t e do,esti1 1a**ie* is a AAT-*egiste*ed pe*sonE and B2C t at t*anspo*t o- passenge*s andFo* 1a*go is -*o, t e P ilippines to a -o*eign 1ount*" T e Cou*t -ound t at PAL 1o,plied %it t e *e=ui*e,ents> As *ega*ds t e 1 st *e=uisite; PAL o--e*ed in eviden1e its Ce*ti-i1ates o- Regist*ation %it t e +IR La*ge Ta6pa"e*s !ivision> As *ega*ds t e 2nd *e=uisite; PAL p*esented its C a*te* Ag*ee,ent %it 8))A to p*ove t at t e t*ansa1tion $et%een PAL and 8))A involved t*anspo*t o- passenge*s -*o, t e P ilippines to a -o*eign 1ount*"> PALDs t*ansa1tion %it 8))A is su$:e1t to /e*o-*ated sale o- se*vi1es> &u*t e*; PAL is not lia$le to pa" t e %it olding ta6 on t e said t*ansa1tion> PAL as -ull" su$stantiated its 1lai, t at t e e**oneousl" %it eld P p .2(;(32>47 %as a1tuall" *e,itted $" 8))A to CIR $" p*esenting t e Ce*ti-i1ate o- &inal Ta6 )it eld at Sou*1e and a 1op" o- t e Mont l" Re,ittan1e Retu*n o- AAT and t e Annual In-o*,ation Retu*n o- C*edita$le In1o,e Ta6es )it eld -o* 200(> 3nde* t e p*in1iple o- solution inde$iti; +IR ta6es % i1 it as no *ig t to *e1eive> as t e o$ligation to *e-und t e

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#$ect to %ero Percent (0&! 'ate T(e follo)in* services perfor+ed in t(e P(ilippines #, V T re*istered persons s(all #e su#$ect to -ero percent (0&! rate. xxx xxx xxx xxx (/! Transport of passen*ers and car*o #, air or sea vessels fro+ t(e P(ilippines to a forei*n countr,. xxx xxx.0 2 Section 1.108-2. %ero-'ated Sale of Services xxx xxx (#! Transactions Su#$ect to %ero Percent (0&! V T 'ate. 3xx xxx (/! Transport of passen*ers and car*o #, do+estic air or sea carriers fro+ t(e P(ilippines to a forei*n countr, 4. 5ross receipts of international air carriers doin* #usiness in t(e P(ilippines and international sea carriers doin* #usiness in t(e P(ilippines are still lia#le to a percenta*e tax of t(ree percent (6&! #ased on t(eir *ross receipts as provided or in Section 118 of t(e Tax 7ode #ut s(all not #e lia#le to V T.0

To i!: Re-und o* Issuan1e o- Ta6 C*edit Ce*ti-i1ate "ACTS9 Petitione*; San Miguel Co*p BSMCC; t *oug M* Ai*gilio de 'u/,an BAssistant Ai1e P*esident G &inan1eC %*ote to +IR *e=uesting -o* t e *egist*ation o-; and aut o*it" to ,anu-a1tu*e HSan Mig Lig tI to $e ta6ed at P p 12>17 pe* lite*> +IR g*anted t e *e=uest M* de 'u/,an advised +IR t at San Mig Lig t %ill $e sold at P p 21>17; o* P p (>2. pe* $ottle; less value-added ta6 BAATC and spe1i-i1 ta6; to $e ta6ed at P p 2>17 pe* lite*> M* Al-*edo Ailla1o*te BSMC AP and Manage* o- t e '*oup Ta6 Se*vi1esC; %*ote to t e La*ge Ta6pa"e*s Assistan1e !ivision II BLTA! IIC o- +IR; *e=uesting -o* in-o*,ation on t e ta6 *ate and 1lassi-i1ation o- San Mig Lig t and anot e* $ee* p*odu1t - 'old <agle Jing> M* Cond*ad Ite, BC ie- o- LTA! IIC; *eplied t at San Miguel is allo%ed to *egiste*; ,anu-a1tu*e; and sell San Mig Lig t and its 1lassi-i1ation and *ate as a ne% $*and a*e in o*de*> Asst Co,,issione* <d%in A$ella o- La*ge Ta6pa"e*s Se*vi1e BLTSC issued a #oti1e o- !is1*epan1" against San Miguel; stating t at San Mig Lig t is a va*iant o- t e 1o,pan"Ds e6isting $ee* p*odu1ts; -o* t is *eason; it %as su$:e1ted to a ig e* e61ise ta6 *ate M* +ienvenido +anas BSMC &inan1e Manage*C *e=uested -o* t e %it d*a%al ot e #oti1e o- !is1*epan1" Assistant Co,,issione* A$ella sent its lette*-*e:oinde* to SMC; stating t at San Mig Lig t is t*ul" a va*iant o- San Miguel Pale Pilsen M*> Ailla1o*te BSMC AP and Manage* o- t e '*oup Ta6 Se*vi1esC; %*ote to Assistant Co,, A$ella *e=uesting t at San Mig Lig t $e *e1on-i*,ed as a ne% $*and and t at t e de-i1ien1" assess,ent $e set aside and de,and -o* pa",ent $e %it d*a%n> Co,,issione* 'uille*,o Pa*a"no issued a lette* to SMC sa"ing t at San Mig Lig t is a va*iant o- San Miguel Pale Pilsen and t at an assess,ent -o* de-i1ient e61ise ta6 is -o*t 1o,ing> A P*eli,ina*" Assess,ent #oti1e BPA#C against SMC %as issued in t e a,ount o- P p .72;032;41.>17; allegedl" *ep*esenting de-i1ien1" e61ise ta6 -o* t e pe*iod 1ove*ing 1222 to Janua*" 2004; 1iting t at San Mig Lig t is a va*iant o- t e e6isting $ee* p*odu1ts o- SMC T e*ea-te*; LTS issued a #oti1e o- !is1*epan1" against SMC in t e a,ount oP p 2.; .7(;10.>.4 in1luding inte*est -o* t e pe*iod 1ove*ing Jan .-22 2004> Anot e* PA# %as issued against SMS P p 2.; .7(;10.>.4 -o* t e pe*iod 1ove*ing Jan .-22 2004>

A &o*,al Lette*s o- !e,and %e*e issued %it atta1 ed Assess,ent #oti1e *e=uesting SMC to pa" t e de-i1ien1" e61ise ta6 assess,ent in t e total oP p .72;032;41.>17 Bpe*iod 1ove*ing 1222- Jan 7; 2004 and anot e* -o* P p .72;032;41.>17> SMC -iled a P*otestFRe=uest -o* Re1onside*ation on t e Lette*s o- !e,and> LTS denied t e P*otestFRe=uest -o* Re1onside*ation -o* la14 o- legal and -a1tual $asis> SMC -iled %it Cou*t o- Ta6 Appeal BCTAC; Petitions -o* Revie% -*o, t e +IR Rulings> SMC -iled its -i*st 1lai, -o* *e-und o- t e a,ount o- P p 7.2;23.;1(1>47 %it t e +IR> T en; SMC -iled a Petition -o* Revie% on its -i*st 1lai, -o* *e-und> &*o, !e1 2007-!e1 200( and Jan 2007-Jul"2007; SMC %as o$liged to 1ontinue pa"ing e61ise ta6es at t e in1*eased *ates> SMC -iled its 2nd 1lai, -o* *e-und %it t e +IR in t e a,ount o- P p 22(;3.2;172>02> !ue to t e ina1tion o- CIR on t is 1lai,; SMC -iled anot e* Petition -o* Revie% S&C#s C%NTENTI%N9 SMC is entitled to *e-und as San Mig Lig t is a ne% $*and and not a ,e*e va*iant o- San Miguel Pale Pilsen> CIR#s C%NTENTI%N: SMC is estopped -*o, =uestioning t e 1lassi-i1ation o- San ,ig Lig t as va*iant o- San Miguel Pale Pilsen ISS$ES: B1C ) et e* SMC is entitled to a *e-und in t e a,ount o- P p 22(;3.2;172>02 as 1onse=uen1e o- its *e1lassi-i1ation DECISI%N: Ruled in -avo* o- SMC 8*de*ed CIR to *e-und o* issue a ta6 1*edit 1e*ti-i1ate in -avo* o- SMC in t e a,ount o- P p 22(;1(2;07(>74 *ep*esenting e**oneousl" 1olle1ted and ove*paid e61ise ta6es on San Mig Lig t du*ing t e pe*iod o- !e1 1 2007 up to Jul" 2007 HELD: 5es> SMC is entitled to *e-und> #e% +*and $nder RR No( )*+, A $*and *egiste*ed a-te* Jan 1;1227 and s all in1lude p*eviousl" *egiste*ed $ut ina1tive $*ands o- al1o ol p*odu1ts A $*and on % i1 a ,odi-ie* is p*e-i6ed andFo* su--i6ed to t e *oot na,e o- t e $*and andFo* a di--e*ent $*and % i1 1a**ies $nder RA No( +--. A $*and *egiste*ed a-te* t e date o- e--e1tivit" o- RA .2403 A $*and on % i1 a ,odi-ie* is p*e-i6ed andFo* su--i6ed to t e *oot na,e o- t e $*and

Aa*iant o- +*and

8a+e of la)

t e sa,e logo o* design o- t e e6isting $*and San Mig Lig t is a ne% $*and; and not a va*iant o- an e6isting $*and CTA -ound t at KSan Mig Lig tK is a ne% $*and o- -e*,ented li=uo* %it

*etail p*i1e o- P21>17 pe* lite*; t e*e-o*e; t e sa,e s ould $e ta6ed at t e *ate o- P12>30 pe* lite*> +ased on t e *e1o*ds o- t e 1ase; t e total e61ise ta6 1lai,ed -o* *e-und in t e a,ount o- P22(;3.2;172>02 pe*tains to t e ove*paid e61ise ta6es $" petitione* on its *e,oval o- KSan Mig Lig t;K one o- its $ee* p*odu1ts; -*o, its t *ee plants lo1ated in Polo; Aalen/uela; San &e*nando; Pa,panga; and +a1olod Cit"; -o* t e pe*iod 1ove*ed !e1e,$e* 1; 2007 to Jul" 31; 2007> 8ut o- t e total a,ount o- P p 22(;3.2;172>02 $eing 1lai,ed -o* *e-und $" petitione* as ove*paid e61ise ta6es due on KSan Mig Lig tK *e,ovals -o* t e pe*iod !e1e,$e* 1; 2007 to Jul" 31; 2007; onl" t e a,ount o- P p 22(;1(2;07(>74 is -ull" suppo*ted $" *elevant do1u,ents CTA -inds ,e*it in petitione*Ls 1lai, -o* *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate o- its ove*paid e61ise ta6es $ut in t e *edu1ed a,ount oP22(;1(2;07(>7

T%TAL vs CIR Ponente: Palan1a-<n*i=ue/ Date Promulgated: Janua*" 13; 2011 To i!: Re-und o* Issuan1e o- Ta6 C*edit Ce*ti-i1ate "ACTS: Total -iled %it +8R its 8*iginal Mua*te*l" AAT Retu*ns -o* t e 1 st and 2nd =ua*te*s o- 2007> It -iled A,ended Mua*te*l" AAT Retu*ns *e-le1ting TotalDs vata$le sales; /e*o-*ated sales; do,esti1 pu*1 ases o- non-1apital; and se*vi1es> &o* t e 1st and 2nd =ua*te*s o- 2007; Total in1u**ed unutili/ed input AAT 1*edits -*o, its do,esti1 pu*1 ases o- non-1apital goods and se*vi1es in t e total o- P p .;124;400;37> 8ut o- t is a11u,ulated input AAT; t e a,ount oP p 7;.2.;433>2. is t e e61ess o* unutili/ed input AAT -o* t e =ua*te*s o2007> Total -iled an ad,inist*ative 1lai, -o* *e-und and su$,itted suppo*ting do1u,ents to t e +IR> +e1ause o- +IRDs ina1tion; Total -iled its :udi1ial 1lai, -o* *e-und %it Cou*t o- Ta6 Appeal BCTAC Pili inas Total#s Contention9 Total is entitled to a *e-und CIR#s Contention: TotalDs 1lai, o- *e-und is su$:e1t to ad,inist*ative *outine investigation $" t e +IR> A 1lai, o- *e-und is not ipso -a1to g*anted $e1ause t e CIR still as to investigate t e ve*a1it" o- 1lai, ISS$E: ) et e* o- no* Total is entitled to a *e-und o* issuan1e o- TCC in t e a,ount o- P p 7;.2.;433>2. *ep*esenting its e61ess and unutili/ed input AAT -o* t e 1st and 2nd =ua*te*s o- 2007 on its do,esti1 pu*1 ases o- non-1apital goods and se*vi1es DECISI%N: #o> Total is not entitled to a *e-und o* issuan1e o- TCC> Ruled in -avo* o- CIR>

Petition !enied> T e p*e,atu*e -iling o- TotalDs 1lai, -o* *e-und o- unutili/ed e61ess input AAT -o* t e 1st and 2nd =ua*te*s o- 2007 $e-o*e t e CTA %a**ants a dis,issal o- t e petition ; as no :u*isdi1tion %as a1=ui*ed $" t e 1ou*t> HELD: Pu*suant to Se1tion 112BAC; #IRC 4; a ta6pa"e* ,a" appl" a 1lai, -o* *e-und ounutili/ed input AAT pa",ents not ot e*%ise used -o* an" inte*nal *evenue ta6 due; %it in 2 "a*s *e14oned -*o, t e 1lose o- t e ta6a$le =ua*te* % en t e *elevant sales %e*e ,ade> Total -ailed to p*ove t at is as su$,itted t e 1o,plete suppo*ting do1u,ents to %a**ant t e g*anting o- t e appli1ation -o* ta6 *e-und Pu*suant to Se1tion 112 BCC #IRC 7; t e CIR as 120 da"s -*o, t e su$,ission o- t e 1o,plete suppo*ting do1u,ents to de1ide t e 1lai, -o* *e-und> T us; a ta6pa"e* ,ust 1st su$,it t e 1o,plete suppo*ting do1u,ents $e-o*e t e 120da" pe*iod s ould 1o,,en1e> +IR Co,,issione* 1annot de1ide t e 1lai, -o* *e-und %it out t e 1o,plete suppo*ting do1u,ents> &o* TotalDs -ailu*e to su$,it suppo*ting do1u,ents; t e -iling o- t e Petition -o* Revie% %it t e CTA is p*e,atu*e> In t e 1ase o- Lope/ v Cit" o- Manila; t e Sup*e,e Cou*t *uled t at % e*e a *e,ed" is availa$le %it in t e ad,inist*ative ,a1 ine*"; t is s ould $e *eso*ted to $e-o*e *eso*t 1an $e ,ade to 1ou*ts; not onl" to give t e ad,inist*ative agen1" t e oppo*tunit" to de1ide t e ,atte* $" itsel- di*e1tl"; $ut also to p*event unne1essa*" and p*e,atu*e *eso*t to 1ou*ts> <=uall" settled is t e *ule t at 1lai,s -o* ta6 *e-unds; % en $ased on statutes g*anting ta6 e6e,ptions; pa*ta4e o- t e natu*e o- an e6e,ptionE t us; t e *ule o- st*i1t inte*p*etation against t e ta6pa"e*-1lai,ant applies>

SEC( //)( Refunds or Tax Credits of Input Tax. (A) Zero-Rated or Effectively Zero-Rated Sales. - an" AAT-*egiste*ed pe*son; % ose sales a*e /e*o*ated o* e--e1tivel" /e*o-*ated ,a"; %it in t%o B2C "ea*s a-te* t e 1lose o- t e ta6a$le =ua*te* % en t e sales %e*e ,ade; appl" -o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate o* *e-und o- 1*edita$le input ta6 due o* paid att*i$uta$le to su1 sales; e61ept t*ansitional input ta6; to t e e6tent t at su1 input ta6 as not $een applied against output ta69 P*ovided; o%eve*; T at in t e 1ase o- /e*o-*ated sales unde* Se1tion 10(BACB2C BaCB1C; B2C and B+C and Se1tion 10. B+CB1C and B2C; t e a11epta$le -o*eign 1u**en1" e61 ange p*o1eeds t e*eo- ad $een dul" a11ounted -o* in a11o*dan1e %it t e *ules and *egulations o- t e +ang4o Sent*al ng Pilipinas B+SPC9 P*ovided; -u*t e*; T at % e*e t e ta6pa"e* is engaged in /e*o-*ated o* e--e1tivel" /e*o*ated sale and also in ta6a$le o* e6e,pt sale o- goods o- p*ope*ties o* se*vi1es; and t e a,ount o1*edita$le input ta6 due o* paid 1annot $e di*e1tl" and enti*el" att*i$uted to an" one o- t e t*ansa1tions; it s all $e allo1ated p*opo*tionatel" on t e $asis o- t e volu,e o- sales> 2 SEC( //)( Refunds or Tax Credits of Input Tax. (C) Cancellation of VAT Registration. - A pe*son % ose *egist*ation as $een 1an1elled due to *eti*e,ent -*o, o* 1essation o- $usiness; o* due to 1 anges in o* 1essation o- status unde* Se1tion 10(BCC o- t is Code ,a"; %it in t%o B2C "ea*s -*o, t e date o- 1an1ellation; appl" -o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate -o* an" unused input ta6 % i1 ,a" $e used in pa",ent o- is ot e* inte*nal *evenue ta6es>

A0%N v CIR Ponente: Cotang1o-Manalastas Date Promulgated: Jan 20; 2011 Topi19 &ACTS9 &o* t e pe*iod o- Ma" 172007 to &e$ 20;2007; Avon paid 20? e61ise ta6es i,posed on pe*-u,ed and toilet %ate*s unde* Se1 170 o- #IRC (> &o* t e sa,e pe*iod; Avon ele1t*oni1all" -iled (3 <61ise Ta6 Retu*ns -o* Auto,o$iles and #on-<ssential 'oods s o%ing an agg*egated a,ount o- P p 1(4;402;032>.7 as e61ise ta6 due> 8n Ma" 10; 2007; Avon -iled a %*itten 1lai, -o* *e-und o- e**oneousl" paid e61ise ta6es> Its g*ound -o* t e 1lai, is t at t e p*in1ipal ing*edient is denatu*ed al1o ol; % i1 is e6e,pt -*o, e61ise ta6 unde* Se1tion 134 #IRC 7; and t at its p*odu1t donDt 1ontain essential oils ,o*e t an 3? $" %eig t and as su1 s ould not $e su$:e1ted to e61ise ta6 unde* Se1 170 #IRC>
/

SEC( /12( Non-Essential oods. * T e*e s all $e levied; assessed and 1olle1ted a ta6 e=uivalent to t%ent" pe*1ent B20?C $ased on t e % olesale p*i1e o* t e value o- i,po*tation used $" t e +u*eau oCusto,s in dete*,ining ta*i-- and 1usto,s duties; net o- e61ise ta6 and value-added ta6; o- t e -ollo%ing goods9 BaC All goods 1o,,onl" o* 1o,,e*1iall" 4no%n as :e%el*"; % et e* *eal o* i,itation; pea*ls; p*e1ious and se,i-p*e1ious stones and i,itations t e*eo-E goods ,ade o-; o* o*na,ented; ,ounted o* -itted %it ; p*e1ious ,etals o* i,itations t e*eo- o* ivo*" Bnot in1luding su*gi1al and dental inst*u,ents; silve*-plated %a*es; -*a,es o* ,ountings -o* spe1ta1les o* e"eglasses; and dental gold o* gold allo"s and ot e* p*e1ious ,etals used in -illing; ,ounting o* -itting t e teet CE ope*a glasses and lo*gnettes> T e te*, "precious metals" s all in1lude platinu,; gold; silve* and ot e* ,etals o- si,ila* o* g*eate* value> T e te*, Ni,itations t e*eo- s all in1lude platings and allo"s o- su1 ,etalsE B$C Pe*-u,es and toilet %ate*sE B1C 5a1 ts and ot e* vessels intended -o* pleasu*e o* spo*ts> 9 SEC( /-.( !o"estic !enatured Alco#ol. - !o,esti1 al1o ol o- not less t an one und*ed eig t" deg*ees B1.08C p*oo- Bninet" pe*1ent O20?P a$solute al1o olC s all; % en suita$l" denatu*ed and *ende*ed un-it -o* o*al inta4e; $e e6e,pt -*o, t e e61ise ta6 p*es1*i$ed in Se1tion 1419 Provided, however, T at su1 denatu*ed al1o ol s all $e su$:e1t to ta6 unde* Se1tion 10(BAC o- t is Code9 Provided, further, T at isu1 al1o ol is to $e used -o* auto,otive po%e*; it s all $e ta6ed unde* Se1tion 14.BdC o- t is Code9 Provided, finally, T at an" al1o ol; p*eviousl" *ende*ed un-it -o* o*al inta4e a-te* denatu*ing $ut su$se=uentl" *ende*ed -it -o* o*al inta4e a-te* unde*going -e*,entation; dilution; pu*i-i1ation; ,i6tu*e o* an" ot e* si,ila* p*o1ess s all $e ta6ed unde* Se1tion 141 o- t is Code and su1 ta6 s all $e paid $" t e pe*son in possession o- su1 *ep*o1essed spi*its>

CIR did not g*ant t e 1lai, o- *e-und> T e 2 "ea* p*es1*iptive pe*iod is a$out to e6pi*e; en1e; Avon -iled t e instant petition -o* *evie% Avon#s Contention: T e de-inition o- toilet %ate*s in t e Cos,eti1 P*odu1ts Regulations %as not ,odi-ied $" eit e* statute o* *egulations> T e AAT and e61ise ta6 p*ovisions o- t e ta6 1ode ave sin1e $een a,ended seve*al ti,es $ut t e de-inition otoilet %ate*s *e,ained un1 anged> +IRDs Revenue Me,o*andu, Ci*1ula* 1 anged t e de-inition o- toilet %ate*s CIR#s Contention: T e RMC de-ined 1olognes % i1 p*ope*l" i,posed 1ove*s ite,s in =uestion> <61ise ta6 %as

ISS$E: ) et e* o* not Avon is entitled to a *e-und o- e**oneousl" paid e61ise ta6 in t e a,ount o- P p 74;(.1;0.0>2.> DECISI%N: Ruled in -avo* o- Avon> CIR is o*de*ed to *e-und o* issue a ta6 1*edit 1e*ti-i1ate to Avon in t e a,ount o- P p 4.;.17;17.>.7; *ep*esenting e**oneousl" paid e61ise ta6es on p*odu1ts %it essential oil 1ontent o- 3? o* less -o* t e pe*iod o- Ma" 17;2007 to &e$ 20; 2007> HELD: S1ented p*epa*ations 1ontaining essential oils o- 3? o* less $" %eig t a*e not su$:e1t to t e 20? e61ise ta6 unde* Se1tion 170B$C #IRC> T e de-inition o- toilet %ate*s as p*ovided $" Cos,eti1 P*odu1ts Regulations9 Toilet %ate*s a*e s1ented al1o oli1 o* non-al1o oli1 p*epa*ations p*i,a*il" used as $od" -*ag*an1e 1ontaining essential oils i>e> ,o*e t an 3? $" %eig t> <6a,ples9 Lavende* %ate*; <au de Cologne; <au de Toilette> A11o*ding to Avon; +IR in its Revenue Me,o*andu, Ci*1ula* #o> 17-02 dated Ma" 24; 2002 ,odi-ied t e de-inition o- toilet %ate*s> +IRDs de-inition e6panded t e 1ove*age o- toilet %ate*s to $*oaden t e de-inition to in1lude all ot e* 1olognes> T e +IR *uling and RMC 1annot $e seen as a,ending t e de-inition o- toilet %ate*s unde* t e *egulations> RMC is ,e*el" an ad,inist*ative inte*p*etation o- t e la% and 1annot $e given e--e1t i- it is 1ont*a*" to a Revenue Regulation> AvonDs p*odu1t % i1 ave less t an 3? essential oil 1ontent $" %eig t s ould not $e su$:e1t to t e 20? e61ise ta6 unde* Se1 170B$C #IRC> T e independent CPA as ve*i-ied t e a,ount o- P p 74;(.1;0.0>2. 1lai,ed $" Avon %e*e indeed paid as e61ise ta6es to +IR as s o%n in t e e61ise ta6 *etu*ns> T e pa",ents a*e p*ope*l" suppo*ted $" o*iginal dupli1ate sales invoi1es>

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T e independent CPA 1o,puted t e e61ise ta6es att*i$uted to ea1 o- t e do1u,ents e6a,ined> T e $at1 es % i1 %as not p*oven to ave essential oil 1ontent o- 3? o* less %ill not $e 1ounted -o* t e pu*pose o- t e *e-und> T e a,ount to $e *e-unded %as *edu1ed to P p 4.;.17;17.>.7> A&ENDED DECISI%N: Avon v CIR Ponente: Cotang1o-Manalastas Date Promulgated: Ma" 1(; 2011 DECISI%N: CIR -iled a Motion -o* Re1onside*ation and a*gued t at Revenue Me,o*andu, Ci*1ula* #o 43-2003 . is a valid inte*p*etation o- Se1 170B$C #IRC> Se1 170B$C #IRC ,a4es no distin1tion as to t e t"pe o- pe*-u,e o* toilet %ate*s % i1 s all $e su$:e1t to t e 20? e61ise ta6> T e ta6 1ode does not p*ovide t e de-inition o- pe*-u,es o* toilet %ate*s % i1 leads CTA to 1on1lude t at su1 te*,s ave $een used in t ei* o*dina*" ,eaning )it t e *epeal o- RR no .-.4 $" <8 #o 273; t e de-inition o- t e te*,s Hpe*-u,eI and Htoilet %ate*sI %e*e also *epealed> Pe*-u,es and toilet %ate*s a*e %idel" unde*stood to ,ean p*epa*ations o* li=uids ,eant -o* putting -*ag*an1e on t e s4in and a*e gene*all" inte*1 angea$le> 0a%le"Ds Condensed C e,i1al !i1tiona*"; % i1 %as 1ited in t e +IR *uling; *ein-o*1es t e inte*1 angea$ilit" o- pe*-u,e and toilet %ate*> T e*e-o*e +IR Ruling and RMC is t e p*ope* appli1ation o- Se1 170B$C #IRC> As su1 AvonDs p*odu1ts a*e su$:e1t to t e 20? e61ise ta6 i,posed on pe*-u,es and toilet %ate*s> !e1ision dated Janua*" 20;2011 is *eve*sed A&ENDED DECISI%N: Avon v CIR Ponente: Cotang1o-Manalastas Date Promulgated: 81t 7; 2011 DECISI%N: T e A,ended !e1ision !ated Ma" 1(; 2011 is set aside and t e 8*iginal !e1ision dated Janua*" 20;2011 is e*e$" *einstated> CIR is o*de*ed to *e-und o* issue TCC to Avon in t e a,ount o- P p 4.;.17;17.>.7 T e de-inition o- Ktoilet %ate*sK unde* t e Regulation ,ust still $e -ollo%ed in1luding t e *e=ui*e,ent -o* essential oil 1ontent o- ,o*e t an 3? $" %eig t> As su1 ; AvonLs p*odu1ts % i1 ave less t an 3? essential oil
8

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1ontent $" %eig t s ould not $e su$:e1t to t e 20? e61ise ta6 unde* Se1tion 170B$C o- t e 1227 Ta6 Code; as a,ended> #o% e*e in t e *e1o*ds o- t e 1ase does it appea* t at *espondent as assessed petitione* -o* t e 20? e61ise ta6 on t e su$:e1t p*odu1ts %it 3? o* less essential oil 1ontent; % at %as s o%n %as onl" t at *espondent *e1eived t e e**oneous pa",ent o- t e 20? e61ise ta6es on said p*odu1ts upon *e,oval -*o, t e pla1e o- p*odu1tion> T e A,ended !e1ision dated Ma" 1(; 2011 is S<T ASI!<; and t e o*iginal !e1ision dated Janua*" 20; 2011 is e*e$" R<I#STAT<!> Respondent is e*e$" 8R!<R<! to *e-und o* issue a ta6 1*edit 1e*ti-i1ate to petitione* in t e a,ount o- P4.;.17;17.>.7; *ep*esenting e**oneousl" paid e61ise ta6es on p*odu1ts %it essential oil 1ontent o- 3? o* less -o* t e pe*iod Ma" 17; 2007 to &e$*ua*" 20; 2007>

&INDANA% SH%PPIN' 0 DA0A% CIT3 Ponente: Cotang1o-Manalastas Date Promulgated: Janua*" 21; 2011 To i!: Lo1al Ta6 8*dinan1e "ACTS: !avao Cit" 1olle1ted lo1al $usiness ta6es against *etaile*s 1ondu1ting $usiness ope*ations; pu*suant to !avao Cit"Ds 8*dinan1e> T e *ate 1olle1ted %as 70? o- 1? o- g*oss *e1eipt o- sales -o* *etaile*s %it g*oss *e1eipt oP p2;000;000>00 -o* t e p*evious 1alenda* "ea*> In 2007; t e Ta6 8*dinan1e %as a,ended so a ne% ta6 *ate %as i,posed on lo1al $usinesses> T e lo1al $usiness ta6 *ate % i1 !avao Cit" 1olle1ted is 1 Q? o- g*oss *e1eipts o* sales -o* *e1eipts in e61ess o- P p400;000> &u*t e* a,end,ents %e*e ,ade on t e o*dinan1e &o* 2007;200( and 2007 Mindanao S opping et alDs g*oss *e1eipts e61eeded P p400;000; t e ne% ta6 *ates %e*e i,posed against t e,> Mindanao S opping et al assailed t e validit" o- t e o*dinan1e $" -iling an appeal $e-o*e t e !epa*t,ent o- Justi1e B!8JC on Jan 200( !8J dis,issed t e appeal>

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Mindanao S opping appealed to t e 8--i1e o- t e P*esident> T e appeal %as li4e%ise denied> T is p*o,pted Mindanao S opping to elevate t e 1ase to t e Cou*t o- Appeals Meanti,e; Mindanao S opping -iled %it !avao Cit"Ds T*easu*e* 1lai,s -o* *e-und> T*easu*e* denied t e *e-und -o* $eing p*e,atu*e> Jan 200.; Mindanao S opping -iled %it RTC a 1o,plaint 1lai,ing -o* *e-und o- t e lo1al $usiness ta6es paid -o* 200( and 2007> RTC *uled in -avo* o- !avao Cit"> T e 1lai, is p*e,atu*e &indanao S4o ing#s Contention: T e ne% *ates i,posed $" t e o*dinan1e a*e e61essive; opp*essive; illegal; 1on-is1ato*"; in *est*aint ot*ade; 1ont*a*" to t e Constitution and in violation o- t e Lo1al 'ove*n,ent Code> RTC e**ed in *uling t at t e 1ase %as a ,e*e *epetition o- t e CA 1ase> A ta6pa"e* s ould not a%ait t e -inalit" o- t e de1ision o- a 1ou*t de1la*ing a ta6 ,easu*e void $e-o*e -iling a 1lai, -o* *e-und Davao#s Contention: RTC 1o**e1tl" dis,issed t e 1ase> Re=uisites o- litis pendentia a*e p*esent9 t e*e is identit" o- pa*tiesE t e*e is identit" o- 1auseE t e identi1al *elie- soug t ISS$ES: ) et e* o* not t e *ates i,posed $" t e lo1al o*dinan1e is e61essive DECISI%N: A--i*,ed RTC> Ruled in -avo* o- !avao Cit" HELD: RTC did not e** in *uling t at t e RTC 1ase is a *epetition o- t e CA 1ase o* t at t e ele,ents o- litis pendentia a*e e6tant in t e RTC 1ase> Litis pendentia is p*edi1ated on t e p*in1iple t at a pa*t" s ould not $e allo%ed to ve6 anot e* ,o*e t an on1e *ega*ding t e sa,e su$:e1t ,atte* and -o* t e sa,e 1ause o- a1tion> T is p*in1iple is -ounded on pu$li1 poli1"> &u*t e*; an" :udg,ent t at ,a" $e *ende*ed $" CA; *ega*dless o- % i1 pa*t" is su11ess-ul; %ould a,ount to *es :udi1ata in t e RTC> RTC did not e** in t e *uling t at RTC 1ase %as p*e,atu*e and t at t e Mindanao S opping etal s ould ave -i*st a%aited t e out1o,e o- t e CA 1ase> T e 1lai, -o* *e-und lodged %it t e RTC is inged on t e alleged un1onstitutionalit" o- t e #e% Ta6 8*dinan1e; % i1 is t e ve*" sa,e issue pending -o* dete*,ination $" t e CA> T e Cou*t did not *ule on t e un1onstitutionalit" o- t e #e% Ta6 8*dinan1e> An o*dinan1e is p*esu,ed valid unless de1la*ed ot e*%ise $" a Cou*t in an app*op*iate p*o1eeding

16

CA'A3AN v NTC Ponente: Contang!o*&analastas Date Promulgated: 5an ),6 )2// To i!: Aut o*it" to i,pose -*an1 ise ta6 $" L'3 "ACTS: #TC t*ans,its and sells ele1t*i1 po%e* to CA'<LC8 I and CA'<LC8 II $ot Caga"an> in

T e P*ovin1e o- Caga"an; t *oug t e Sangguniang Panlala%igan ena1ted in 1222 t e P*ovin1ial Ta6 8*dinan1e> Ma*1 1.; 200.; 8IC P*ovin1ial T*easu*e* issued an Assess,ent Lette*; toget e* %it a State,ento - &*an1 ise Ta6 !ue and a state,ent o- &*an1 ise Ta6 Colle1ti$les C52001-2007> Caga"an assessed #TC -o* t e pa",ent o-*an1 ise ta6 1ove*ing t e "ea*s 2002-2007 in t e agg*egate a,ount o- P p 4;737..(>24 and t e annual -ee o- P p 20;000 B'ove*no*Es pe*,it -ee to po%e* p*odu1e*s #TC -iled a -o*,al p*otest Ma" 200.> T is %as denied $" Caga"an> #TC did not appeal t e denial>

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Ma*1 2002; Caga"an -iled t e instant 1o,plaint; p*a"ing t at T*ans1o $e o*de*ed to pa" -*an1 ise ta6 in t e a,ount o- P p4;737;..(>24; su*1 a*ges and penalties in t e a,ount o- P p 3;2(7;271>03; and 'ove*no*Ds -ee in t e a,ount o- P p20;000 Caga7an#s Contention: Caga"an 1an legall" i,pose and 1olle1t -*an1 ise ta6 against #TC pu*suant to its 8*dinan1e #o> 04-22; in *elation to Se1tion 137 o- t e Lo1al 'ove*n,ent Code BL'CC2> T e 1lai,ed e6e,ptions o- #TC %as %it d*a%n $" Se1 123; LC'10> NTC#s Contention: T e *e=uisites -o* ta6 lia$ilit" unde* A*t 22( o- t e Rules and Regulations I,ple,enting t e L'C a*e not p*esent> #TCDs su$station is lo1ated in Tuguega*ao Cit"; Caga"an; % i1 is not %it in t e te**ito*ial :u*isdi1tion ot e p*ovin1e> #TC %as 1*eated $" vi*tue o- RA 213(; t us; e61luded -*o, t e 1ove*age oSe1 133 o- L'C> T e*e is no *eason -o* lo1al gove*n,ents to ta6 national gove*n,ent inst*u,entalities -o* *ende*ing essential pu$li1 se*vi1es to in a$itants o- lo1al gove*n,ents> T e onl" e61eption is % en t e legislatu*e 1lea*l" intended to ta6 gove*n,ent inst*u,entalities and 1o,pelling poli1" 1onside*ations> T e*e ,ust $e e6p*ess language in t e la% e,po%e*ing lo1al gove*n,ents to ta6 national gove*n,ent inst*u,entalities> An" dou$t % et e* su1 po%e* e6ists is *esolved against t e lo1al gove*n,ents ISS$E: B1C ) et e* t e Cou*t o- Ta6 appeal as :u*isdi1tion ove* t e 1ase> B2C ) et e* o* not #TC 1an $e eld lia$le to pa" to t e P*ovin1e o- Caga"an -*an1 ise ta6 -o* C5 2002-2007; su*1 a*ges and 'ove*no*Ds -ee DECISI%N: Ruled in -avo* o- Caga"an> 8*de*ed #TC to pa" Caga"an P p 4;737..(>24 and 'ove*no*Ds -ee in t e a,ount o- P p20;000 HELD: B1C T e Assess,ent Lette* dated Ma*1 200. o- t e T*easu*e* o- Caga"an satis-ies t e *e=ui*e,ent p*ovided unde* Se1tion 127 LC' 11; pa*ti1ula*l"; $"
:

Se!tion /-,( "ran!4ise Ta8 > - #ot%it standing an" e6e,ption g*anted $" an" la% o* ot e* spe1ial la%; t e p*ovin1e ,a" i,pose a ta6 on $usinesses en:o"ing a -*an1 ise; at t e *ate not e61eeding -i-t" pe*1ent B70?C o- one pe*1ent B1?C o- t e g*oss annual *e1eipts -o* t e p*e1eding 1alenda* "ea* $ased on t e in1o,ing *e1eipt; o* *eali/ed; %it in its te**ito*ial :u*isdi1tion> In t e 1ase o- a ne%l" sta*ted $usiness; t e ta6 s all not e61eed one-t%entiet B1F20C o- one pe*1ent B1?C o- t e 1apital invest,ent> In t e su11eeding 1alenda* "ea*; *ega*dless o- % en t e $usiness sta*ted to ope*ate; t e ta6 s all $e $ased on t e g*oss *e1eipts -o* t e p*e1eding 1alenda* "ea*; o* an" -*a1tion t e*eon; as p*ovided e*ein 10 Se!tion /+-( 9it4dra:al of Ta8 E8em tion Privileges > - 3nless ot e*%ise p*ovided in t is Code; ta6 e6e,ptions o* in1entives g*anted to; o* p*esentl" en:o"ed $" all pe*sons; % et e* natu*al o* :u*idi1al; in1luding gove*n,ent-o%ned o* 1ont*olled 1o*po*ations; e61ept lo1al %ate* dist*i1ts; 1oope*atives dul" *egiste*ed unde* R>A> #o> (23.; non-sto14 and non-p*o-it ospitals and edu1ational institutions; a*e e*e$" %it d*a%n upon t e e--e1tivit" o- t is Code>

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stating t e natu*e o- t e ta6; -ee o* 1 a*ge; t e a,ount o- de-i1ien1"; su*1 a*ges; inte*ests and penalties> ) en #TC -iled t e Co,plaint; t e assess,ent o- Caga"an against it $e1a,e -inal and e6e1uto*"; t us %it in t e :u*isdi1tion o- CTA> B2C 5es> #TC is lia$le> T e aut o*it" o- Caga"an to i,pose -*an1 ise ta6 t *oug t e 8*dinan1e as not $een disputed> In #ational Po%e* Co*p B#PCC vs Cit" o- Ca$anatuan; t e Sup*e,e Cou*t up eld t e aut o*it" o- t e L'3 to i,pose -*an1 ise ta6 against #PC> Se1 137; L'C 1lea*l" states t at t e L'3s 1an i,pose -*an1 ise ta6 not%it standing an" e6e,ption g*anted $" an" la% o* ot e* spe1ial la%> Se1 123 $ut*esses t e %it d*a%al o- e6tant ta6 e6e,ption p*ivileges> #TC doesnDt dispute t at its 1usto,e*s a*e %it in t e te**ito*ial :u*isdi1tion oCaga"an> #TC -ailed to s o% t at it is e6e,pt -*o, su$:e1t -*an1 ise ta6 unde* t e 1 a*te* % i1 1*eated it> La%s g*anting e6e,ption -*o, ta6 a*e 1onst*ued st*i1tiss,i :u*is against t e ta6pa"e* and in -avo* o- t e ta6ing po%e*

CA'A3AN v PLDT Ponente: Palan1a-<n*i=ue/

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Se!tion /+1( Protest of Assessment> - ) en t e lo1al t*easu*e* o* is dul" aut o*i/ed *ep*esentative -inds t at 1o**e1t ta6es; -ees; o* 1 a*ges ave not $een paid; e s all issue a noti1e o- assess,ent stating t e natu*e o- t e ta6; -ee; o* 1 a*ge; t e a,ount o- de-i1ien1"; t e su*1 a*ges; inte*ests and penalties> )it in si6t" B(0C da"s -*o, t e *e1eipt o- t e noti1e o- assess,ent; t e ta6pa"e* ,a" -ile a %*itten p*otest %it t e lo1al t*easu*e* 1ontesting t e assess,entE ot e*%ise; t e assess,ent s all $e1o,e -inal and e6e1uto*"> T e lo1al t*easu*e* s all de1ide t e p*otest %it in si6t" B(0C da"s -*o, t e ti,e o- its -iling> It e lo1al t*easu*e* -inds t e p*otest to $e % oll" o* pa*tl" ,e*ito*ious; e s all issue a noti1e 1an1elling % oll" o* pa*tiall" t e assess,ent> 0o%eve*; i- t e lo1al t*easu*e* -inds t e assess,ent to $e % oll" o* pa*tl" 1o**e1t; e s all den" t e p*otest % oll" o* pa*tl" %it noti1e to t e ta6pa"e*> T e ta6pa"e* s all ave t i*t" B30C da"s -*o, t e *e1eipt o- t e denial o- t e p*otest o* -*o, t e lapse o- t e si6t" B(0C da" pe*iod p*es1*i$ed e*ein %it in % i1 to appeal %it t e 1ou*t o- 1o,petent :u*isdi1tion ot e*%ise t e assess,ent $e1o,es 1on1lusive and unappeala$le>

1/

Date Promulgated9 Janua*" 27;2011 To i!: "ACTS: T is de1ision *esolves a Motion -o* Re1onside*ation -iled $" $ot Caga"an and PL!T Caga7an#s Contention: PL!TDs *elian1e on t e +u*eau o- Lo1al 'ove*n,ent &inan1e B+L'&C 8pinion is ,ispla1ed sin1e t e +L'& is not an agen1" tas4ed to i,ple,ent t e ta6 la%E and t e assess,ent $eing =uestioned ad al*ead" $e1o,e -inal and e6e1uto*" -o* -ailu*e to 1ontest and *aise t e issue o- p*es1*iption %it in (0 da"s -*o, noti1e> PLDT#s Contention: PL!T 1ontends t at it %as a olde* in good -ait t at PL!T is e6e,pt -*o, -*an1 ise ta6 issued $" t e +L'& stating

ISS$ES: B1C ) et e* o* not t e inte*p*etation o- Ta6 la%s $" +L'& is aut o*itative> B2C ) et e* o* not t e *ig t o- Caga"an to 1olle1t ta6es due as al*ead" p*es1*i$ed PL!T is e6e,pt -*o, -*an1 ise ta6 DECISI%N: Pa*tl" g*anted HELD: B1C #o> T e Sup*e,e Cou*t al*ead" *uled t at +L'&Ds inte*p*etation o- lo1al ta6 la% is not aut o*itative sin1e its -un1tion is ,e*el" to p*ovide 1onsultative se*vi1es and te1 ni1al assistan1e to lo1al gove*n,ents and t e gene*al pu$li1 on ta6ation and *eal p*ope*t" assess,ent> It is t e Co,,issione* oInte*nal Revenue % o as $een given t e po%e* to inte*p*et t e Ta6 Code B2C 5es> T e *ig t o- Caga"an as al*ead" p*es1*i$ed> Se1 1(( LC' p*ovides t at all lo1al ta6es; -ees; and 1 a*ges s all a11*ue on t e 1 st da" o- Janua*" ea1 "ea*; and Se1 1(7 L'C p*ovides -o* t e pa",ent o- all lo1al ta6es; -ees; and 1 a*ges; %it in t e -i*st 20 da"s o- Janua*" o* o- ea1 su$se=uent =ua*te*; as t e 1ase ,a" $eE t en lo1al ta6es -o* t e 4 t =ua*te* o- 122.; % i1 in1lides -*an1 ise ta6; a11*ued on Jan 1;1222; and $e1o,e pa"a$le %it in t e -i*st 20 da"s o- Jan t e sa,e "ea*> In t is 1ase; t e assess,ent %as issued onl" in 2004> T us; PL!T is entitled to a *e-und o* issuan1e o- TCC

STA;LE9%%DS v CIR

19

Ponente: Cotang1o-Manalastas Date Promulgated: Janua*" 31; 2011 To i!: Se1 7( #IRC; I**evo1a$ilit" *ule "ACTS: 8n Ap*il 200(; Sta$le%oods ele1t*oni1all" -iled its Annual In1o,e Ta6 Retu*n BITRC -o* 2007; % i1 *e-le1ted an ove*pa",ent o- P p7(;247;344>22 An ad,inist*ative 1lai, o- *e-und o- t e e61ess C*edita$le %it olding Ta6 BC)TC -o* 2007 %as -iled %it +8R on #ov 200(> +IR -ailed to a1t on t e appli1ation -o* *e-und; p*o,pting Sta$le%oods to -ile t e p*esent Petition -o* Revie%> Sta<le:oods Contention: Sta$le%oods 1lai,sR t at it is entitled to a *e-und in t e a,ount o- P p (7;0.7;207>.2; *ep*esenting its alleged e61essFunutili/ed 1*edita$le %it olding ta6 -o* ta6a$le "ea* 2007> CIR#s Contention: Sta$le%oodsD 1lai, -o* *e-und is still su$:e1t to investigation> It -ailed to de,onst*ate t at t e ta6 %as e**oneousl" o* illegall" 1olle1ted> In t is a1tion -o* *e-und; Sta$le%oods as t e $u*den to p*ove t at it is entitled to su1 ISS$E: ) et e* o* not Sta$le%oods is entitled to t e *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate in t e a,ount o- P p(7;0.7;207>.2; *ep*esenting Sta$le%oodsD alleged e61essFunutili/ed 1*edita$le %it olding ta6 -o* 2007> DECISI%N: Ruled in -avo* o- CIR> Sat$le%oodsD Petition is !enied> HELD: Se1 7( #IRC o--e*s 2 options to a 1o*po*ation % ose total =ua*te*l" in1o,e pa",ents in a given ta6a$le "ea* e61eed its total in1o,e ta6 due9 B1C -iling a 1lai, -o* ta6 *e-und Beit e* in t e -o*, o- 1as o* ta6 1*edit 1e*ti-i1ateC o* B2C availing o- a ta6 1*edit> &o* t e -i*st option; an" ta6 in1o,e t at is paid in e61ess o- t e a,ount due t e gove*n,ent ,a" $e *e-unded; p*ovided t at a ta6pa"e* p*ope*l" applies -o* t e *e-und> T e se1ond option %o*4s $" appl"ing t e *e-unda$le a,ount; as s o%n on t e &inal Ad:ust,ent Retu*n o- a given ta6a$le "ea*; against t e esti,ated =ua*te*l" in1o,e ta6 lia$ilities o- t e su11eeding ta6a$le "ea*> 0o%eve*; on1e t e 1a**"-ove* option is 1 ose; it $e1o,es i**evo1a$le -o* t at ta6a$le pe*iod> In e6e*1ising its option; t e 1o*po*ation ,ust signi-" in its annual 1o*p ad:ust,ent *etu*n its intention eit e* to 1a**" ove* t e e61ess 1*edit o* to 1lai, a *e-und> As *e-le1ted in its annual *etu*n; Sta$le%oodsD o*iginal 1 osen option to *e-und Bin t e -o*, o- ta6 1*edit 1e*ti-i1ateC t e a,ount o- P p(7;0.7;207>.2

18

is a1tuall" negated $" its ve*" a1t o- 1a**"ing ove* said e61ess a,ount to t e su11eeding ta6a$le =ua*te*s o- 200(> Sta$le%oods is $ound $" t e i**evo1a$ilit" *ule unde* Se1 7( #IRC> It 1annot see4 *e-und o- P p(7;0.7;207>.2 even i- t e sa,e %as not utili/ed in t e su11eeding "ea*> Its onl" *e1ou*se is to appl" t e e61ess a,ount to t e su11eeding =ua*te*sF"ea*s until it is -ull" utili/ed9

'%$LD v CIR Ponente: Cotang1o-Manalastas

1:

Date Promulgated: &e$ 4; 2011 To i!: !e-i1ien1" )it olding Ta6 on Co,pensation "ACTS: 8n !e1 2003; 'oulds *e1eived CIRDs &inal Assess,ent #oti1e B&A#C assessing it -o* alleged de-i1ien1" in1o,e ta6; AAT; %it olding ta6 on 1o,pensation; e6panded %it olding ta6 and -inal %it olding ta6 -o* 2000; in t e agg*egate a,ount o- P p133;7.7720>14> In t e sa,e ,ont ; 'oulds p*otested t e assess,ent $" -iling a lette* p*otest %it t e +8R La*ge Ta6pa"e* !ist*i1t 8--i1e> Sin1e CIR did not *espond on t e p*otest; 'oulds -iled t is Petition -o* Revie% 'ould#s Contention: 'ould 1lai,s t at it is entitled to all t e i,,unities and p*ivileges unde* Se1tion ( o- R>A> #o> 24.0; su1 as t e i,,unit" -*o, t e de-i1ien1" in1o,e ta6; value-added ta6; and do1u,enta*" sta,p ta6 assess,ents; in1luding in1*e,ents t e*eon -o* ta6a$le "ea* 2000 in t e agg*egate a,ount o- P p 122;274;10(>4 7> CIR#s Contention: CIR alleged t at t e Petition -o* Revie% %as not -iled %it in t i*t" B30C da"s -*o, t e lapse o- t e one und*ed eig t" B1.0C-da" pe*iod pu*suant to Se1tion 22. ISS$E: ) et e* o* not t e assess,ents -o* de-i1ien1" AAT and <6panded )it olding Ta6 ave p*es1*i$ed DECISI%N: Petition Pa*tiall" g*anted> T e assess,ent -o* de-i1ien1" -inal %it olding ta6 -o* -is1al "ea* 2000 in t e a,ount o-P7;277;242>(2 is e*e$" CA#C<LL<!> 0o%eve*; t e assess,ents -o* de-i1ien1" %it olding ta6 on 1o,pensation and <)T ta6 issued $" *espondent against petitione* -o* -is1al "ea* 2000 a*e e*e$" A&&IRM<! %it so,e ,odi-i1ations> A11o*dingl"; petitione* is e*e$" 8R!<R<! to PA5 *espondent t e de-i1ien1" %it olding ta6 on 1o,pensation HELD: Petitione* ,a" -ile an ad,inist*ative p*otest %it in 30 da"s -*o, t e *e1eipt o- t e assess,ent> All t e *elevant suppo*ting do1u,ents s all $e su$,itted %it in (0 da"s -*o, t e date o- -iling o- p*otest; ot e*%ise; t e assess,ent s all $e1o,e -inal> I- t e p*otest is denied o* not a1ted upon %it in 1.0 da"s -*o, t e su$,ission o- do1u,ents; t e ta6pa"e* ,a" appeal to t e CTA %it in 30 da"s -*o, *e1eipt o- de1ision; o* -*o, t e lapse o- t e 1.0 da" pe*iodE ot e*%ise; t e de1ision s all $e1o,e -inal; e6e1uto*"; and de,anda$le !e-i1ien1" %it olding ta6 on 1o,pensation G T e*e %e*e no p*oo- to esta$lis t e 1lai, o- 'oulds t at t e e6pense a11ount is att*i$uta$le in its enti*et" to t e *eti*e,ent plan> As a *esult; t e assess,ent is up eld -o* 'ouldsD -ailu*e to su$stantiate its 1o,,ission e6pense and e,plo"ee %el-a*e e6pense a11ount

20

&%NE3LINE v CIR Ponente: Cotan1go-Manalastas Date Promulgated: &e$ 4; 2011 To i!: "ACTS: !e1e,$e* 23;2007; CIR sent to Mone"line a P*eli,ina*" Assess,ent #oti1e BPA#C %it t e details o- dis1*epan1ies; assessing Mone"line -o* de-i1ien" oin1o,e ta6; e6panded %it olding ta6; %it olding AAR; -inal %it olding ta6; and 1apital gains ta6 -o* 2002 in t e a,ount o- P p 27;.72;710>(2 Mone"line p*otested and *e=uested a *einvestigation> CIR *eplied in t e -o*, o- a &inal Assess,ent #oti1e B&A#C> CIR g*anted t e *e=uest -o* *einvestigation $ut still -ound Mone"line lia$le to pa" t e alleged de-i1ien1ies in in1o,e ta6> Mone"line -iled a -o*,al p*otest on 81t 27;200( disputing t e &A#> CIRDs -ailu*e to a1t on t e p*otest p*o,pted Mone"line to -iled t e instant Petition -o* Revie% on Jul" 17; 2007> &one7line#s Contention: It ,ust not $e assessed a de-i1ien1"> Mone"line opted not to in1lude t e data 1 a*ge -o* ta6a$le "ea* 2001; on t e g*ound t at t e sa,e is still disputed and is not "et -ull" dete*,ined> T e -a1t t at petitione* ad not "et *e1eived t e $illing state,ent -*o, MTI-3S B1lientC until Ma" 2002; it 1ould not *easona$l" $e e6pe1ted to ave 4no%n its lia$ilit" %it *easona$le a11u*a1" as o- !e1e,$e* 31; 2001; o* even up to t e last da" o- -iling o- t e 2001 In1o,e Ta6 Retu*n %it t e +IR>

Mone"lineDs *e1o*ds a*e 4ept on t e a11*ual $asis; does not dispute t at t e e6penses in =uestion %e*e in1u**ed in p*io* "ea* o* in 2001> +ut it is a*gued t at t e -inal a,ount o- data 1 a*ges %as onl" dete*,ined via *e1eipt o- t e $illing invoi1e in Ma" 2002E t us; it %as 1lai,ed as e6pense onl" in "ea* 2002>
CIR#s Contention: T e assess,ents in =uestion %e*e ,ade and issued in a11o*dan1e %it *ules and *egulations la%;

Ae*i-i1ation dis1losed t at e6penses in1u**ed in 2001 a,ounting to P71; 174;000>27 %e*e 1lai,ed as dedu1tion in t e 1o,putation o- net ta6a$le in1o,e -o* ta6a$le "ea* 2002 in violation o- Se1tion 34BACB I CBaC in *elation to Se1tion 47 o- t e 1227 Ta6 Code> ISS$E: B1C ) et e* o* not t e petition %as -iled on ti,e>

21

B2C ) et e* o* not Mone"line is lia$le to de-i1ien1" in1o,e ta6; %it &)T; <)T -o* 2002>

olding;

DECISI%N: Petition -o* Revie% is e*e$" PARTIALL5 'RA#T<!> T e de-i1ien1" in1o,e ta6; %it olding AAT; and -inal %it olding ta6 assess,ents -o* ta6a$le "ea* 2002 a*e e*e$" CA#C<LL<!> 8n t e ot e* and; t e de-i1ien1" e6panded %it olding ta6 assess,ent is e*e$" 3P0<L! in pa*t> A11o*dingl"; Mone"line is e*e$" 8R!<R<! to PA5 *espondent Co,,issione* o- Inte*nal Revenue t e *edu1ed a,ount o- T)<#T5 8#< T083SA#! 8#< 03#!R<! T0IRT5 SIS P<S8S A#! 77F100 BP21;l3(>77C; *ep*esenting de-i1ien1" e6panded %it olding ta6 -o* HELD: B1C KS<C> 22.> Protesting of Assessment.Su1 assess,ent ,a" $e p*otested ad,inist*ativel" $" -iling a *e=uest -o* *e1onside*ation o* *e investigation %it in t i*t" B30C da"s -*o, *e1eipt o- t e assess,ent in su1 -o*, and ,anne* as ,a" $e p*es1*i$ed $" i,ple,enting *ules and *egulations> )it in si6t" B(0C da"s -*o, -iling o- t e p*otest; all *elevant suppo*ting do1u,ents s all ave $een su$,ittedE ot e*%ise; t e assess,ent s all $e1o,e -inal> I- t e p*otest is denied in % ole o* in pa*t; o* is not a1ted upon %it in one und*ed eig t" B1.0C da"s -*o, su$,ission o- do1u,ents; t e ta6pa"e* adve*sel" a--e1ted $" t e de1ision o* ina1tion ,a" appeal to t e Cou*t o- Ta6 Appeals %it in t i*t" B30C da"s -*o, *e1eipt o- t e said de1ision; o* -*o, t e lapse o- t e one und*ed eig t" BI .0C-da" pe*iodE ot e*%ise; t e de1ision s all $e1o,e -inal; e6e1uto*" and de,anda$le>K
SSS SSS SSS

Appl"ing t e pe*iods p*ovided in t e a$ove-=uoted p*ovision; *e1o*ds *eveal t at Mone"line -iled its p*otest lette* %it t e +IR on 81to$e* 27; 200(; % i1 is e6a1tl" 30 da"s -*o, t e *e1eipt o- t e &o*,al Assess,ent #oti1e o* -*o, Septe,$e* 27; 200(> 0en1e; petitione* ti,el" -iled its p*otest> Su$se=uentl"; Mone"line su$,itted its suppo*ting do1u,ents on !e1e,$e* 20; 200(> Counting -*o, t e said date; CIR ad 1.0-da"s o* until June 1.; 2007 to de1ide on t e p*otest> 0o%eve*; in t is 1ase; t e*e is no indi1ation t at *espondent a1ted on Mone"line Ls p*otest> T us; 1ounting -*o, t e date o- t e e6pi*ation o- t e 1.0-da" pe*iod o* -*o, June 1.; 2007; Mone"line ad 30 da"s o* until Jul" 1.; 2007; %it in % i1 to -ile its appeal $e-o*e t is Cou*t> Clea*l"; t e instant Petition -o* Revie%; % i1 %as -iled %it t is Cou*t on Jul" 17; 2007; %as -iled %it in t e p*es1*iptive pe*iod p*ovided $" la%> B2C Mone"line is lia$le onl" -o* t e de-i1ien1" e6panded %it olding ta6; it -ailed to %it old and *e,it t e 1o**esponding %it olding ta6es due on 1e*tain in1o,e pa",ents du*ing t e "ea*E en1e; t e assess,ent ode-i1ien1" e6panded %it olding ta6 s all $e up eld> t e -und t*ans-e*s ,ade to MTI %e*e -o* pa",ent o- glo$al 1ost o* 1ost osales -o* t e se*vi1es petitione* *e1eived -*o, MTI; $ut in no %a" pe*tain to t e *o"alt" o* li1ense pa",ents -o* t e use o- se*vi1e; and s ould t e*e-o*e not $e su$:e1ted to %it olding o- AAT>

22

DIA'E% v( CIR6 Commissioner of Customs (C%C) Ponente9 C8TA#'C8-MA#ALASTAS !ate P*o,ulgated9 &e$ 14; 2011 Topi19 Re-und o- ta6 o- -o* #on-AAT *egiste*ed 1o,pan"> "ACTS: !iageo is a do,esti1 1o*po*ation engaged in i,po*tation and

% olesale t*ading o- li=uo*s and spi*its %it *etail outlets lo1ated %it in t e Su$i1 +a" &*eepo*t Tone BS+&TC> Its p*i,a*" pu*pose is to Kdeal in; $a*te*; e61 ange and dispose o- all 4inds o- goods; %a*es; a*ti1les; 1o,,odities; ,e*1 andise and p*odu1ts su1 as $ut not li,ited to li=uo*s; spi*its; 1 e,i1als; a*d%a*e; ele1t*i1al e=uip,ent and supplies; $oo4s and pe*iodi1als on % olesale $asis onl"; 1ondu1t and engage in t e $usiness as i,po*te*s and e6po*te*s o- all 4inds o- 1o,,odities; and a1t as agents o* *ep*esentatives o- -i*,s and individuals % et e* do,esti1 o* -o*eign and as su1 develop; p*o,ote and e6tend t e $usiness inte*ests osu1 -i*,s andFo* individualsK> !iageo is *egiste*ed in t e S+&T as a KSu$i1 +a" &*eepo*t <nte*p*iseK> It is *egiste*ed %it t e +IR Revenue !ist*i1t 8--i1e> !iageo i,po*ted 1e*tain li=uo*s and spi*its into t e Su$i1 Spe1ial <1ono,i1 and &*eepo*t Tone BSS<&TC in 2007> 0o%eve*; it e6po*ted out o- t e SS<&T also in 2007; so,e o- said i,po*ted li=uo*s and spi*its> 81to$e* 23; 200(; !iageo -iled %it CIR t e app*op*iate ad,inist*ative 1lai, -o* *e-undFta6 1*edit o- P74;13.;731>20; *ep*esenting e61ise ta6 and AAT paid $" !iageo -o* 2007 on its i,po*tation into S+&T o- li=uo*s and spi*its % i1 %e*e su$se=uentl" e6po*ted>
8n

8n 81to$e* 27; 200(; !iageo -iled %it CoC t e ad,inist*ative 1lai, -o* *e-undFta6 1*edit o- P17;232;2((>32; *ep*esenting alleged e**oneous pa",ent o- ta*i-- and 1usto,s duties $" !iageo -o* ta6a$le "ea* 2007; on its i,po*tation into and e6po*tation -*o, S+&T o- li=uo*s and spi*its> !iageo 1lai,s t at it is entitled to a *e-undFta6 1*edit -o* its p*eviousl" paid e61ise ta6; AAT; and ta*i-- and 1usto,s duties; pu*suant to Se1tion 12B1C o- RA 7227 and Se1 43 o- t e IRR % i1 allegedl" e6e,pt !iageo -*o, all national inte*nal *evenue ta6es and ta*i-- and 1usto,s duties on i,po*tations; in1luding e61ise ta6> 26

CIR 1ounte*s t at t e a,ount o- P74;13.;731>20 1lai,ed $" !iageo as e**oneous pa",ent o- AAT on t e i,po*tation into t e S+&T is not p*ope*l" do1u,ented> C8C adds t at !iageo is not e6e,pt pu*suant to RA 2334; % i1 spe1i-i1all" p*ovides t at ta6es; duties and 1 a*ges; in1luding e61ise ta6es; a*e ,ade to appl" even to SS<&T; 1iting Se1 131 o- #IRC; as a,ended $" RA 2334>

ISS$E: )8# !iageo is entitled to a *e-und o* issuan1e o- ta6 1*edit o-

P(2;377;727>72 BP37;272;711>2(; P1(;172;012>24 and P17;232;2((>32C allegedl" *ep*esenting e61ise ta6; AAT and ta*i-- and 1usto,s duties e**oneousl" paid $" !iageo on its i,po*ted and e6po*ted li=uo*s and spi*its in 2007>
DECISI%N: N%( Clai, -o* *e-und ,ust -ail> Petition -o* *evie% denied> HELD: Se1 112B0C involves a 1lai, -o* *e-und o* ta6 1*edit $" a AAT-

*egiste*ed ta6pa"e* o- unutili/ed input AAT att*i$uta$le to /e*o-*ated o* e--e1tivel" /e*o-*ated sales o* due to *eti*e,ent -*o, o* 1essation o$usiness unde* Se1tions 112BAC and BCC o- t e sa,e Code> 0e*e; petitione* is a non-AAT-*egiste*ed pe*son and t is is a 1lai, -o* *e-und o- AAT paid on i,po*tation $ased on petitione*Ls e6e,ption p*ivilege pu*suant to RA #o> 7227> T us; t e appli1a$le p*ovisions a*e Se1tions 222 andR204BCC o- t e #IRC o- 1227; instead o- Se1tion 112B0C> +ased on t e a,end,ent int*odu1ed $" RA 2334; it is 1lea* t at Kt e i,po*tation o- 1iga*s and 1iga*ettes; distilled spi*its; -e*,ented li=uo*s and %ines into t e P ilippines; even i- destined -o* ta6 and dut"--*ee s ops; s all $e su$:e1t to all appli1a$le ta6es; duties; 1 a*ges; in1luding e61ise ta6es due t e*eonKE t is s all appl" to 1iga*s and 1iga*ettes; distilled spi*its; -e*,ented li=uo*s and %ines $*oug t di*e1tl" into t e dul" 1 a*te*ed o* legislated -*eepo*ts o- t e SS<&T; 1*eated unde* RA 7227> It is 1atego*i1all" p*ovided t at t e a,end,ents %ill a--e1t 1 a*te*ed o* legislated -*eepo*ts o- SS<&T; 1*eated unde* RA 7227> T e la% is; t e*e-o*e; 1lea* t at Kt e i,po*tation o- 1iga*s and 1iga*ettes; distilled spi*its; -e*,ented li=uo*s and %ines into t e P ilippines; even i- destined -o* ta6 and dut"--*ee s ops; s all $e su$:e1t to all appli1a$le ta6es; duties; 1 a*ges; in1luding e61ise ta6es> T e p *ase Kall appli1a$le ta6esK in1ludes ta6 lia$ilit" -o* t e pa",ent o- AAT on i,po*tation unde* Se1tion 107 ot e #IRC; as a,ended> +" su$se=uentl" ena1ting RA 2334; Cong*ess e6p*essed its intention to %it d*a% !iageoLs ta6 e6e,ption p*ivilege on t ei* i,po*tations o1iga*s; 1iga*ettes; distilled spi*its; -e*,ented li=uo*s and %ines>

21

9INE;RENNER v CIR Ponente9 C8TA#'C8-MA#ALASTAS !ate P*o,ulgated9 &e$ 1(; 2011 Topi19 Re-und o- e61ess and unutili/ed 1*edita$le in1o,e ta6es %it

eld

"ACTS: 9INE;RENNER6 a do,esti1 1o*po*ation unde* P ilippine la%s; -iled %it t e +IR t e o*iginal 2007 In1o,e Ta6 Retu*n Ap*il 17 200(; t e &i*st A,ended ITR on Ma" 2; 200( and t e Se1ond A,ended ITR on Ma" 17; 200(> 8n Ap*il 2; 200.; petitione* -iled %it t e +IR Revenue !ist*i1t 8--i1e #o> 70 an ad,inist*ative 1lai, -o* *e-und o- e61ess and unutili/ed

1*edita$le %it olding ta6es -o* ta6a$le "ea* 2007 in t e a,ount oP4;312;(24>00> T e*ea-te*; petitione* -iled t e instant Petition -o* Revie% on Ap*il 14; 200.> CIR inte*posed t at )I#<+R<##<R is not entitled to a *e-und o* ta6 1*edit $e1ause it opted to 1a**"-ove* its e61ess 1*edita$le %it olding ta6 -o* 2007 in its A,ended Annual In1o,e Ta6 Retu*n -iled on Ma" 2; 200(> 0en1e; said option is 1onside*ed i**evo1a$le and 1annot $e alte*ed $" -iling an a,ended annual in1o,e ta6 *etu*n pu*suant to Se1tion 7( o- t e 1227 Ta6 Code and t e !e1ision o- t e 0ono*a$le Cou*t in t e 1ase o- Cebu Holdings, Inc. vs. Commissioner of Internal evenue, C !.A. Case "o. #$#% dated &eptember '$, %$$%.
ISS$E: )8# )I#<+R<##<R is entitled to a *e-und o* issuan1e o- ta6

1*edit 1e*ti-i1ate in t e a,ount o- P4;312;(24>00; *ep*esenting alleged unutili/ed 1*edita$le %it olding ta6 -o* ta6a$le "ea* 2007>
DECISI%N: No( Petition denied(

T e Annual In1o,e Ta6 Retu*ns *eveals t at )I#<+R<##<R opted to 1a**" ove* and appl" its e61ess 1*edita$le in1o,e ta6es %it eld -o* ta6a$le "ea* 2007 to t e su11eeding "ea*> ) ile
HELD:

22

)I#<+R<##<R ,a*4ed t e $o6 pe*taining to t e p *ase KTo $e issued a

Ta6 C*edit Ce*ti-i1ateK -o* its unutili/ed e61ess 1*edita$le %it olding 12 ta6 in its o*iginal and se1ond a,ended Annual In1o,e Ta6 Retu*ns -o* 2007; its -i*st a,ended Annual In1o,e Ta6 Retu*n -o* 2007 e6pli1itl" s o%s t at )I#<+R<##<R 1 ose t e option o- 1a**"-ove* o- its e61ess 1*edita$le %it olding ta6 $" ,a*4ing t e $o6 1o**esponding to t e p *ase KTo $e 1a**ied ove* as ta6 1*edit ne6t "ea*F=ua*te*K> T e 1a**"-ove* option is 1onside*ed i**evo1a$le and 1annot $e alte*ed $" -iling an a,ended Annual In1o,e Ta6 Retu*n; pu*suant to Se1tion 7( o- t e #IRC o- 1227; as a,ended; and no appli1ation -o* a ta6 *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate s all t en $e allo%ed( In t e se1ond a,ended ITR -o* 2007; )I#<+R<##<R ad total ta6 1*edits o- P2;.00;2(3>00E % i1 1onsisted o- t e p*io* "ea*Ls e61ess 1*edits in t e a,ount o- P7;4..;2(2>00 and 1*edita$le ta6es %it eld du*ing t e "ea* 2007 in t e a,ount o- P4;312;(24>00> Petitione*Ls in1o,e ta6 due %as paid using a po*tion o- its p*io* "ea*Ls e61ess 1*edits o- P7;4..;2(2>00; leaving t e p*io* "ea*Ls e61ess 1*edits in t e a,ount o- P4;421;173>00 BP7;4..;2(2>00 less P1;0(7;02(>00C and 1*edita$le ta6es %it eld du*ing t e "ea* 2007 in t e a,ount oP4;312;(24>00; o* a total o- P.;733;.(7>00; unutili/ed as o- !e1e,$e* 31; 2007> Indeed; Cou*t -inds t at )I#<+R<##<R did not in -a1t 1a**" ove* and appl" t e 2007 unutili/ed e61ess ta6 1*edits oP4;312;(24>0027 as ,a" $e ve*i-ied in its 200( Annual In1o,e Ta6 Retu*n> #eve*t eless; in t e 1ase o- Commissioner of Internal evenue vs. (an) of the Philippine Islands, t e Sup*e,e Cou*t de1la*ed t at even if t4e e8!ess in!ome ta8 !redit :as not a!tuall7 a lied to a ta8 lia<ilit7; t e 1 oi1e to 1a**" ove* is still i**evo1a$le>

2/

;AR'E 0 C%&&ISSI%NER %" C$ST%&S AND $NDERSECRETAR3 %" "INANCE Ponente9 +A3TISTA; J !ate P*o,ulgated9 &<+ 17; 2011 Topi19 Illegal i,po*tation "ACTS: 8n August 23; 200(; MFT KJa1o$ 1;K to%ing $a*ge KC e*"l Ann;K 1ontaining used oil -*o, t e Repu$li1 o- Palau; ente*ed t e Po*t o- Su*igao> T e said tug$oatF$a*ge 1ontained p*o i$ited 1a*goes Bused oil %it out ne1essa*" pe*,its -*o, t e 1on1e*ned gove*n,ent agen1"C; t e vessels %e*e detained $" t e P ilippine Coast 'ua*d upon t e *e=uest o- t e !ist*i1t Colle1to* o- t e Po*t o- Su*igao> A )a**ant o- Sei/u*e and !etention %as issued against t e $a*ge KC e*"l AnnK and its 1a*go o- used oil> A Supple,ental ) a**ant o- Sei/u*e and !etention %as issued against tug$oat MFT KJa1o$ 1;K -o* t e i,po*tation; 1onve"an1e andF o* t*anspo*tation ounla%-ul ,ate*ials in violation o- Se1tion 2730 o- t e TCCP; as a,ended> Petitione*Ds Contention9 T e 1a*go %as destined and intended -o* Mala"sia> T e an1 o*age o- MFT Ja1o$ 1 at t e Po*t o- Su*igao %as 1aused $" t e need -o* Ke,e*gen1" $un4e*ingK as it %as *unning lo% on -uel; -ood p*ovisions and su--e*ing ,e1 ani1al p*o$le,> Po*t Aut o*ities and 1on1e*ned agen1ies %e*e noti-ied o- t e a**ival and an1 o*age o- Ja1o$ 1 at t e Su*igao Cit" % a*- -o* Ke,e*gen1" $un4e*ingK and *e=uested -o* assistan1e to -a1ilitate and e6pedite its <nt*an1e and Clea*an1e -o*,alities> MFT Ja1o$ 1 %as given p*ope* 1lea*an1e $" t e I,,ig*ation 8--i1e* in Su*igao Cit"; t e +u*eau oMua*antine and ot e* pe*tinent gove*n,ent agen1ies to depa*t -o* Manila o* Ce$u -o* *epai*s as t ese 1annot $e done in Su*igao> RespondentDs Contention9 Aiolation o- Se1tion 2730 o- t e TCCP; as a,ended>

29

S<CTI8# 2730> Property &ub*ect to +orfeiture ,nder !ariff and Customs -aws. - An" ve i1le; vessel o* ai*1*a-t; 1a*go; a*ti1les and ot e* o$:e1ts s all; unde* t e -ollo%ing 1onditions; $e su$:e1t to -o*-eitu*e9 a> An" ve i1le; vessel o* ai*1*a-t; in1luding 1a*go; % i1 s all $e used unla%-ull" in t e i,po*tation o* e6po*tation o- a*ti1les o* in 1onve"ing andFo* t*anspo*ting 1ont*a$and o* s,uggled a*ti1les in 1o,,e*1ial =uantities into o* -*o, an" P ilippine po*t o* pla1e> T e ,e*e 1a**"ing o* olding on $oa*d o1ont*a$and o* s,uggled a*ti1les in 1o,,e*1ial =uantities s all su$:e1t su1 vessel; ve i1le; ai*1*a-t; o* an" ot e* 1*a-t to -o*-eitu*e9 Provided, T at t e vessel; o* ai*1*a-t o* an" ot e* 1*a-t is not used as dul" aut o*i/ed 1o,,on 1a**ie* and as su1 a 1a**ie* it is not 1 a*te*ed o* leasedE ISS$E=s: )8# t e*e %as an illegal i,po*tation 1o,,itted; o* at least an atte,pt t e*eo-; % i1 %ould :usti-" t e -o*-eitu*e o- t e $a*ge KC e*"l Ann>K DECISI%N: N%( Petition 'RANTED( T e Co,,issione* o- Custo,s is 8R!<R<! to IMM<!IAT<L5 R<L<AS< t e $a*ge KC e*"l AnnI> HELD: +a*ge KC e*"l Ann;K $eing a non-,oto*i/ed vessel; and $eing to%ed $" t e tug$oat KJa1o$ 1;K ente*ed t e :u*isdi1tion o- t e P ilippines onl" $e1ause t e latte* %as -o*1ed to ente* t e Po*t o- Su*igao -o* an e,e*gen1" $un4e*ing> As dul" app*oved $" *espondent Co,,issione* o- Custo,s; t e do1u,enta*" e6 i$its %ould 1lea*l" point to t e 1on1lusion t at t e MFT LJa1o$ 1L %as $ound -o* Mala"sia; and %ould ave a**ived t e*eat; %e*e it not -o* t e da,age sustained $" t e MFT LJa1o$ 1L % ile in t*ansit -*o, Palau to Mala"sia; ne1essitating e,e*gen1" *epai*s in t e Po*t o- Su*igao; t e nea*est po*t>K1. T us; t e 1onse=uent ent*" o- t e $a*ge KC e*"l AnnK into t e P ilippine :u*isdi1tion %as onl" due to t e e,e*gen1" needs o- t e tug$oat KJa1o$ 1;K % i1 p*in1ipall" navigates and 1ont*ols t e *oute> <vident -*o, t e To% i*e Ag*ee,ent *e-e**ed to in t e !isposition &o*,; ente*ed into $" and $et%een 8SM S ipping P ils>; In1>; t e o%ne* o- MFT KJa1o$ 1;K and petitione*; as t e o%ne* o- t e $a*ge KC e*"l Ann;K 1atego*i/ed as a 1ont*a1t o- a--*eig t,ent; t at t e o%ne* o- t e tug$oat ,ans t e vessel %it its o%n people and *etains t e possession; 1o,,and and navigation osaid t e s ip> T e KC e*"l Ann;K $eing a non-,oto*i/ed vessel; and onl" to%ed $" KJa1o$ 1;K ,a4ing t e tug$oat t e p*in1ipal and t e $a*ge a ,e*e a11esso*"; ne1essa*il"; as no ,eans o- 1ont*olling its *oute o* destination> Cou*t -inds t e ele,ent o- intent on t e pa*t o- t e $a*ge KC e*"l AnnK %anting>

28

'RAND PLA>A H%TEL C%RP%RA TI%N v CIR Ponente9 C8TA#'C8-MA#ALASTAS; . !ate P*o,ulgated9 &e$*ua*" 1.; 2011 Topi19 <--e1t o- AAT e6e,ption o- a 1o*po*ation on ot e* entities it t*ansa1ts %it "ACTS: '*and Pla/a 0otel Co*po*ation is a do,esti1 1o*po*ation; *e1eived a P*eli,ina*" Assess,ent #oti1e BPA#C dated #ove,$e* 2.; 200( indi1ating its alleged lia$ilit" -o* de-i1ien1" AAT -o* ta6a$le "ea* 2002 a,ounting to P22.;243;7.2>17; in1lusive o- inte*est % i1 a*ose -*o, '*and Pla/aLs t*ansa1tion %it t e P ilippine A,use,ent and 'a,ing Co*po*ation BPA'C8RC> '*and Pla/a e**oneousl" *e1o*ded its t*ansa1tions %it PA'C8R; a,ounting to P124;122;224>.4; as e6e,pt sales % en t e t*ansa1tion s ould ave $een su$:e1t to AAT> CIR ave**ed t at PA'C8RLs 1 a*te* ad $een e--e1tivel" a,ended $" RA 771( o* t e <-AAT la% on Janua*" I; 122( and $" Se1tion 10. o- t e #IRC o- 1227> CIR li4e%ise alleged t at '*and pla/a is lia$le -o* output ta6 on p*evious "ea*sL B1ove*ing t e pe*iod -*o, 122( to 2001C t*ansa1tions %it PA'C8R totaling Pl0.;714;740>.3; sin1e PA'C8R is su$:e1t to A A T $eginning Janua*" l ; 122(> CIR is o- t e $elie- t at an" sale t*ansa1tion unde*ta4en in t e 1ou*se o$usiness % i1 does not 1onstitute sale o- goods BSe1tion 10(; #IRC o- 1227C;

2:

and % i1 is not e6p*essl" e6e,pt -*o, AAT unde* t e Code BSe1tion 102; # IRC o- 1227C; is e,$*a1ed in t e 1lassi-i1ation o - a Kse*vi1eK su$:e1t to t e 10? AAT Sin1e t e t*ansa1tion $et%een petitione* and PA'C8R is in1luded in t e 1lassi-i1ation o- a Kse*vi1eK; *espondent 1on1luded t at su1 t*ansa1tion is su$:e1t to AAT> '*and Pla/a; ,aintained t at PA'C8R *e-uses to pa" t e AAT on its t*ansa1tions %it '*and Pla/a; 1iting Se1tion 13B2CBaC o- P! 1.(2 BKPA'C8R C a*te*KC % i1 e6e,pts it -*o, all 4inds o- ta6es; levies; -ees o* assess,ents o- an" 4ind; natu*e o* des1*iption levied; esta$lis ed o* 1olle1ted $" an" ,uni1ipal; p*ovin1ial o* national gove*n,ent aut o*it"> PA'C8R is *el"ing on Se1tion 10.B+CB3C o- t e Ta6 Code; % i1 i,poses AAT at 0? on se*vi1es *ende*ed to ta6-e6e,pt entities unde* spe1ial la%s; su1 as PA'C8R; 1iting as its $asis t e *uling o- t e Sup*e,e Cou*t in Commissioner of Internal evenue vs. Acesite Hotel Corporation /Acesite case0. ISS$E: )8# '*and Pla/a t*ansa1tions %it PA'C8R a*e su$:e1t to I0? AAT $eginning Janua*" 1; 122( up to t e "ea* 2002> DECISI%N: #8> Petition is g*anted> Assess,ent issued against '*and Pla/a -o* de-i1ien1" AAT -o* ta6a$le "ea*s 122( to 2002 is e*e$" CA#C<LL<!> HELD: In Commissioner of Internal evenue vs. Acesite Hotel Corporation, t e Sup*e,e Cou*t al*ead" settled t e issue as to PA'C8RLs e6e,ption unde* P! 1.(2> It *uled t at unde* PA'C8RLs C a*te*; it is g*anted e6e,ption -*o, pa",ent o- ta6es e61ept -*an1 ise ta6E % i1 s all $e in lieu o- all 4inds o- ta6es; levies; -ees o* assess,ents o- an" 4ind; natu*e o* des1*iption; levied; esta$lis ed o* 1olle1ted $" an" ,uni1ipal; p*ovin1ial; o* national gove*n,ent aut o*it"> Su1 e6e,ption is e6tended to entities o* individuals dealing %it PA'C8R in 1asino ope*ations> Sin1e '*and Pla/aDs t*ansa1tion %it PA'C8R pe*tains to latte*Ls 1asino ope*ations; PA'C8RL s e6e,ption -*o, ta6es; spe1i-i1all" -*o, AAT; e6tends to its t*ansa1tion %it '*and Pla/a> CIRDs assess,ent involves '*and Pla/aDs t*ansa1tions %it PA'C8R -*o, 122( to 2002> '*and Pla/aDs se*vi1es to PA'C8R *elate to se*vi1es *ende*ed to an entit" % ose e6e,ption unde* spe1ial la%; % i1 is PA'C8RLs C a*te*; e--e1tivel" %ould su$:e1t t e suppl" o- su1 se*vi1es to 0? *ate> Su1 0? *ate is 1atego*i1all" p*ovided unde* Se1tion 10.B+CB3C o- t e #IRC o- 1227; to %it9 B3C Se*vi1es *ende*ed to pe*sons o* entities % ose e6e,ption unde* spe1ial la%s o* inte*national ag*ee,ents to % i1 t e P ilippines is a signato*" e--e1tivel" su$:e1ts t e suppl" o- su1 se*vi1es to /e*o pe*1ent B0?C *ate>K A t o*oug stud" o- t e p*ovisions 1ited $" CIR; % i1 supposedl" *epealed t e e6e,ption p*ovided unde* P! 1.(2 and t ose % i1 pu*po*tedl" su$:e1ted petitione* to 10? A A T ; *eveals t at said p*ovisions -ailed to 1lea*l"; e6p*essl" and una,$iguousl" esta$lis t at '*and Pla/a ,a" *ig t-ull" $e su$:e1ted to pa" t e 10? AAT>

60

P! 1.(2 is a spe1ial la% % i1 gove*ns t e -*an1 ise o- PA'C8R> +et%een t e p*ovisions o- P! 1.(2 as against t e p*ovisions unde* t e #IRC o- 1227; % i1 is a gene*al la%; t e -o*,e* ne1essa*il" p*evails> T is is in a11o*dan1e %it t e *ule t at on a spe1i-i1 ,atte*; t e spe1ial la% s all p*evail ove* t e gene*al la%E % i1 s all $e *eso*ted to onl" to suppl" de-i1ien1ies in t e -o*,e*> In addition; % e*e t e*e a*e t%o statutes; t e ea*lie* spe1ial and t e late* gene*al - t e te*,s o- t e gene*al $*oad enoug to in1lude t e ,atte* p*ovided -o* in t e spe1ial - t e -a1t t at one is spe1ial and t e ot e* is gene*al 1*eates a p*esu,ption t at t e spe1ial is to $e 1onside*ed as *e,aining an e61eption to t e gene*al; one as a gene*al la% o- t e land; t e ot e* as t e la% o- a pa*ti1ula* 1ase>

INTERP$;LIC v( CIR Ponente9 +autista; J> !ate P*o,ulgated9 &e$*ua*" 21; 2011 Topi19 Ad,inist*ative 1lai, -o* *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate $" non-*esident -o*eign 1o*po*ation on ove*paid -inal %it olding ta6 B&)TC on 1as dividends -*o, a do,esti1 1o*po*ation> "ACTS: Inte*pu$li1 is a non-*esident -o*eign 1o*po*ation dul" o*gani/ed and e6isting unde* and $" vi*tue o- t e la%s o- t e State o- !ela%a*e; 3SA; %it p*in1ipal

61

pla1e o- $usiness in #e% 5o*4; 3SA> Inte*pu$li1 o%ns 2;222;22. s a*es o* 30? o- total outstanding and voting 1apital sto14 o- M1Cann )o*ldg*oup P ilippines; In1> BKM1CannKC; a do,esti1 1o*po*ation engaged in t e gene*al adve*tising $usiness> In 200(; M1CannLs +oa*d o- !i*e1to*s de1la*ed 1as dividends and Inte*pu$li1 *e1eived 1as dividends -*o, M1Cann in a,ount oP(1 ;(24;(07>71> 8n June 17; 200(; M1Cann %it eld a -inal %it olding ta6 o- 37? on petitione*Ls 1as dividends and *e,itted t e pa",ent o- &)T in a,ount o- P21;723;111>23 to t e CIR> 8n Septe,$e* 27; 2007; petitione* esta$lis ed a Regional 0ead=ua*te*s BR0MC in t e P ilippines> 8n Ap*il 30; 200.; petitione*Ls R0M %as 1onve*ted into its Regional 8pe*ating 0ead=ua*te*s BR80MC> 8n Ma*1 7; 200.; petitione* -iled an ad,inist*ative 1lai, -o* *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate %it t e +IR; *e=uesting *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate in t e a,ount o- P12;33.;221>00; *ep*esenting t e alleged ove*paid &)T on dividends paid $" M1Cann to Inte*pu$li1> Inte*pu$li1 1lai,s t at as a non-*esident -o*eign 1o*po*ation; it ,a" avail ot e p*e-e*ential &)T *ate o- 17? on dividends *e1eived -*o, a do,esti1 1o*po*ation unde* Se1tion 2.B.CB7C B$C o- t e #ational Inte*nal Revenue Code B#IRCC> CIR inte*posed t at 1lai,s -o* *e-und a*e 1onst*ued st*i1tl" against t e 1lai,ant -o* t e sa,e pa*ta4e t e natu*e o- e6e,ption -*o, ta6ation> In an a1tion -o* *e-und t e $u*den o- p*oo- is on t e ta6pa"e* to esta$lis its *ig t to *e-und and -ailu*e to sustain t e $u*den is -atal to t e 1lai, -o* *e-undF1*edit> T is is so $e1ause e6e,ptions -*o, ta6ation a*e ig l" dis-avo*ed in la% and e % o 1lai,s e6e,ption ,ust $e a$le to :usti-" is 1lai, $" t e 1lea*est g*ant o- o*gani1 o* statuto*" la%> An e6e,ption -*o, 1o,,on $u*den 1annot $e pe*,itted to e6ist upon vague i,pli1ations> ISS$E: )8# Inte*pu$li1 is entitled to a *e-und o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate o- ove*paid -inal %it olding ta6 on t e 1as dividends dist*i$uted $" M1Cann> DECISI%N: 5<S> Petition g*anted> Ci* o*de*ed to *e-und ove*paid -inal %it olding ta6 on 1as dividends to Inte*pu$li1> HELD: I- t e 1ount*" o- do,i1ile o- t e *e1ipient 1o*po*ation; % i1 in t is 1ase is t e 3S; allo%s as 1*edit against t e ta6 i,posa$le $" it an a,ount e=uivalent to 20? o- t e dividends *e,itted -*o, a P ilippine do,esti1 1o*po*ation to 1o*po*ations do,i1iled t e*ein; t e dividends *e,itted a*e su$:e1t to a -inal %it olding ta6 at t e p*e-e*ential *ate o- 17?; in a11o*dan1e %it Se1tion 2.B+C B7C B$C o- t e #IRC o- 1227> +IR ad p*eviousl" 1on-i*,ed t at a 1o*po*ation; % i1 %as in1o*po*ated unde* t e la%s o- t e 3S; is su$:e1t to 17? ta6 *ate o- t e a,ount o- dividend *e1eived $ased on Se1tion 2.B+C B7C B$C o- t e #IRC o- 1227; as a,ended> Conse=uentl"; dividends *e1eived -*o, a P ilippine 1o*po*ation $" a 1o*po*ation in1o*po*ated outside o- t e P ilippines and do,i1iled in t e 3>S>

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a*e su$:e1t to t e p*e-e*ential ta6 *ate o- 17?; 1onside*ing t at t e 3>S> allo%s a 1*edit against t e ta6 due -*o, t e non-*esident -o*eign 1o*po*ation ta6es dee,ed to ave $een paid in t e P ilippines; as 1on-i*,ed in Commissioner of Internal Revenue vs> Procter and 1amble Philippine 2anufacturing Co*p>; et al., pa*ti1ula*l"; Se1tions 201 and 202 o- t e 3>S> Inte*nal Revenue Code> As 1o**e1tl" pointed out $" Inte*pu$li1; i- it %ill $e su$:e1ted to t e ta6 *ate o- 37? instead o- t e 17? p*e-e*ential *ate $ased on t e said 1as dividend; it %ill $e a depa*tu*e and 1ont*a*" to t e intention o- t e RP- 3S Ta6 T*eat"E % i1 1lea*l" p*ovided t e 1ont*a1ting pa*ties spe1i-i1 p*e-e*ential *ates ot e* t an t e 37? ta6 *ate> In vie% o- t e -o*egoing; t is Cou*t -inds petitione*; as a -o*eign 1o*po*ation in1o*po*ated and do,i1iled in t e 3>S>; entitled to t e 17?>

HA0I "%%D SER0ICES v( CIR Ponente9 C8TA#'C8-MA#ALASTAS; J !ate P*o,ulgated9 &<+ 2.; 2011

66

Topi19 +asi1 *e=ui*e,ents in o*de* -o* it to $e entitled to t e *e-und o- e61ess 1*edita$le %it olding ta6es "ACTS: 0avi &ood Se*vi1es P ils> In1 is a do,esti1 1o*po*ation> 8n Ma*1 2.; 200( and Ma*1 22; 2007; 0avi -iled its Annual In1o,e Ta6 Retu*ns -o* ta6a$le "ea*s 2007 and 200(; *espe1tivel"> 0avi -iled 2 -o*,al %*itten appli1ations -o* *e-und %it t e +IR Revenue !ist*i1t 8--i1e #o> 047-Ma*i4ina Cit" on &e$*ua*" 20; 200. and August 31;2007 in t e a,ount o-P7;23.;4(1>00; *ep*esenting its unutili/ed e61ess 1*edita$le in1o,e ta6es %it eld -o* 2007 and 200(> CIR 1lai,s t at t e $u*den o- p*oo- is on 0avi to p*ove t at it is entitled to t e 1lai, -o* *e-undE a 1lai, -o* *e-und is 1onst*ued st*i1tl" against t e 1lai,ant and in -avo* o- t e ta6ing aut o*it"E t e $u*den o- p*oo- is on 0avi to s o% %it 1lea* and una,$iguous p*ovision o- la% to suppo*t t e *e-und> ISS$E: )8# 0avi is entitled to $e *e-unded its e61ess 1*edita$le %it ta6es -o* 200( in t e a,ount o-P7;23.;4(1>00> DECISI%N: #8> Petition is denied> HELD: T e 1o*po*ate ta6pa"e*Ls e61ess ta6 1*edits o* ove*paid in1o,e ta6 in a given ta6a$le "ea* ,a" eit e* $e *e-unded Beit e* in t e -o*, o- 1as o* ta6 1*edit 1e*ti-i1ateC o* 1a**ied ove*Fapplied to t e su11eeding ta6a$le "ea*s> 0o%eve*; on1e t e option to 1a**"-ove* as $een ,ade; t e sa,e $e1o,es i**evo1a$le -o* t at ta6a$le pe*iod> In &hell &ervices International &endirian (erhad vs. Commissioner ofInternal evenue t e dete*,ination o- t e option 1 osen $" t e ta6pa"e* in a11o*dan1e %it Se1tion 7( o-t e#IRCo-1227> 0aviDs Annual In1o,e Ta6 Retu*n -o* 200( s o%s t at 0avi 1a**ied ove* t e 2007 e61ess 1*edits in t e a,ount o- P234;7(7>00; % i1 %as in1luded in t e 1a**"-ove* a,ount o- P7;272;340>00> T e sa,e %as *e-le1ted in petitione*Ls 2007 Annual In1o,e Ta6 Retu*n; % i1 s o%s p*io* "ea*Ls e61ess 1*edits> Se1t 2>7. o- RR 2-2.; as a,ended; *e=ui*e 1o,plian1e %it 3 $asi1 *e=ui*e,ents in o*de* -o* it to $e entitled to t e *e-und o- e61ess 1*edita$le %it olding ta6es9 1> T at t e 1lai, -o* *e-und %as -iled %it in t e t%o-"ea* p*es1*iptive pe*iod as p*ovided unde* Se1tion 204BCC; in *elation to Se1tion 222 o- #IRC o- 1227E 2> T at t e -a1t o- %it olding is esta$lis ed $" a 1op" o- a state,ent dul" issued $" t e pa"o* B%it olding agentC to t e pa"ee; s o%ing t e a,ount paid and t e a,ount o- ta6 %it eld t e*e-*o,E and 3> T at t e in1o,e upon % i1 t e ta6es %e*e %it eld %e*e in1luded in t e *etu*n o- t e *e1ipient T e a,ount t at 1an $e a p*ope* su$:e1t o- a 1lai, -o* *e-und on t e $asis oSe1tion 7( o- t e #IRC o- 1227 is t e 1lai,ed e61ess 1*edita$le %it olding ta6es -o* ta6a$le "ea* 200(; -o* % i1 petitione* -iled its 1o**esponding Annual In1o,e Ta6 Retu*n on Ma*1 22; 2007> Counting -*o, t is date; petitione* ad until Ma*1 22; 2002 %it in % i1 to -ile its 1lai, -o* *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate -o* ta6a$le "ea* 200(; $ot in t e ad,inist*ative and :udi1ial levels> Petitione*Ls ad,inist*ative 1lai,s -o* *e-und olding

61

%e*e -iled on &e$*ua*" 20; 200. and August 31; 2007E % ile its :udi1ial 1lai, via t e instant Petition -o* Revie% %as -iled on Ma*1 10; 200.> Clea*l"; $ot t e ad,inist*ative and :udi1ial 1lai,s -o* *e-und %e*e -iled %ell %it in t e t%o-"ea* p*es1*iptive pe*iod> 0en1e; t e -i*st *e=uisite %as ,et $" petitione*> In 1o,plian1e %it t e 2nd *e=uisite; 0avi su$,itted S1 edules o- C*edita$le )it olding Ta6es Clai,ed; !etails o- C*edita$le Ta6es )it eld ; and Ce*ti-i1ates o- C*edita$le Ta6 )it eld at Sou*1e B+IR &o*, #o> 2307C E % i1 %e*e e6a,ined $" t e Co,i-1o,,issioned Independent Ce*ti-ied Pu$li1 A11ountant BCPAC; Ms> M"*a Celeste 0> !a$alos> In e* -inal *epo*t; Ms> !a$alos noted a P8>ll *ounding o-- di--e*en1e $et%een t e 1*edita$le %it olding ta6es *e-le1ted in t e Ce*ti-i1ates o- C*edita$le Ta6 )it eld at Sou*1e and t e a,ounts s o%n in t e S1 edule o- C*edita$le )it olding Ta6es> 0o%eve*; 1e*ti-i1ates %it 1*edita$le %it olding ta6es in t e a,ount o- P.;727>(2 %e*e not dul" signed $" t e *espe1tive pa"o*sF%it olding agents> T e*e-o*e; petitione* %as a$le to p*ove t e -a1t o- %it olding onl" as to t e a,ount o-P4;227;370>31> As to t e 3*d *e=uisite; t e*e is a dis1*epan1" o- P27;747;704>70 $et%een t e total g*oss in1o,e *e-le1ted pe* 0aviDs in1o,e ta6 *etu*n vis-a-vis t e total a,ount s o%n pe* +IR &o*,s #o> 2307> 0avi -ailed to *e1on1ile su1 dis1*epan1"> In vie% o- 0aviDs -ailu*e to p*ove t at it de1la*ed t e in1o,e upon % i1 t e su$stantiated 1*edita$le %it olding ta6 o- P4;227;370>31 -o* ta6a$le "ea* 200( %as %it eld; t e *e-und 1lai, 1annot $e g*anted>

62

REP$;LIC CE&ENT v( CIR Ponente9 C8TA#'C8-MA#ALASTAS; J !ate P*o,ulgated9 MARC0 17; 2011 Topi19 Pa",ents o- se*vi1es to non-*esident -o*eign 1o*po*ation "ACTS: &R Ce,ent Co*po*ation; a do,esti1 1o*po*ation; is engaged in t e ,anu-a1tu*e and dist*i$ution o- 1e,ent; 1on1*ete agg*egates and 1on1*ete p*odu1ts gene*all" -o* t e $uilding and 1onst*u1tion indust*"; and to 1a**" on all $usinesses in1ident t e*eto o* 1onne1ted t e*e%it > 8n Ap*il 22; 2003; Repu$li1 Ce,ent *e1eived a P*eli,ina*" Assess,ent #oti1e dated Ma*1 3; 2003 -o* alleged de-i1ien1" in1o,e ta6; %it olding o- -inal value-added ta6; and %it olding ta6 on 1o,pensation -o* ta6a$le "ea* ended !e1e,$e* 31; 1222 in1lusive ointe*est and 1o,p*o,ise penalties> In t e assess,ent o- de-i1ien1" in1o,e ta6; CIR disallo%ed t e dedu1tion -*o, Repu$li1 Ce,entLs g*oss in1o,e -*o, t e %*ite-o-- o- invest,ent du*ing ta6a$le "ea* 1222 -o* $eing unsu$stantiated; and noted a dis1*epan1" in t e volu,e o- 1e,ent $ags p*odu1ed in t e !ail" 8pe*ation Repo*t and t e P*odu1tion Cost Su,,a*" o- Repu$li1 Ce,ent -o* ta6a$le "ea* 1222> T e a-o*esaid dis1*epan1" %as t en 1on1luded to ave *esulted in an unde*de1la*ation o- in1o,e> CIR also assessed Repu$li1 Ce,ent o- de-i1ien1" in1o,e ta6 pe*taining to t e 1lin4e* sales -o* ta6a$le "ea* 1222 on t e assu,ption t at 1lin4e* sales a*e not 1ove*ed $" Repu$li1 Ce,entLs In1o,e Ta6 0olida" in 1222; and t at a 1o**e1ting ent*" in *elation to t e pu*po*ted disposal o- eav" e=uip,ent in 122. is not a dedu1ti$le e6pense $ut s ould ave $een 1 a*ged to Retained <a*nings in 1222> CIR disallo%ed dedu1tion -*o, Repu$li1 Ce,entL s g*oss in1o,e in 1222 o- va*ious pa",ents to supplie*s o- goods and se*vi1es t at %e*e allegedl" not su$:e1ted to %it olding ta6> CIR also disallo%ed dedu1tion -*o, g*oss in1o,e; *ep*esenting dep*e1iation e6pense 1o**esponding to pa",ents ,ade to non-*esident -o*eign 1o*po*ations; % i1 %e*e 1 a*ged to p*ope*t" a11ount $ut %e*e not su$:e1ted to -inal %it olding ta6> CIR alleged t at Repu$li1 Ce,ent -ailed to %it old 10? AAT on its pa",ents to non-*esident -o*eign 1o*po*ations -o* Manage,ent -ee B *o"alt" C; Retention and Se*vi1e o- <le6 <nginee*s J*upp Pol"sius Se*vi1e Cont*a1t; +M0 Claudius <nginee*s; Retention and Se*vi1e &ee o- M*> Jadg,ann; and +M0 Claudius <nginee*s> ISS$E: )8# Repu$li1 is lia$le -o* de-i1ien1" in1o,e ta6 U %it AAT 1222 olding -inal

DECISI%N: 5<S> Petition is PARTIALL 5 'RA#T<!> Assess,ent o- de-i1ien1" 1*edita$le %it olding AAT -o* 1222 is A&&IRM<! %it M8!I&ICATI8#S> HELD: In vie% o- Repu$li1 Ce,entDs avail,ent o- ta6 a,nest"; evaluation is li,ited to validit" o- assess,ent o- de-i1ien1" %it olding o- -inal AAT -o* 1222> Repu$li1 Ce,ent -ailed to -ile a *etu*n ta6es $eing assessed against it> #o eviden1e %as p*esented $" Repu$li1 Ce,ent to p*ove t at it dul" -iled ta6

6/

*etu*ns -o* t e de-i1ien1" %it olding o- -inal AAT> T us; t e Cou*t -inds t at Repu$li1 Ce,entLs de-i1ien1" %it olding o- -inal AAT ,a" $e assessed at an" ti,e %it in ten B10C "ea*s a-te* t e dis1ove*" o- t e said o,ission> A11o*dingl"; CIRL s *ig t to assess Repu$li1 Ce,entL s de-i1ien1" %it olding o- -inal AAT -o* 1222 as not p*es1*i$ed % en e issued on Ma*1 3; 2004 t e &o*,al Lette* o- !e,and t e appli1a$ilit" o- t e 10-"ea* p*es1*iptive pe*iod> As to pa",ents o- se*vi1es to non-*esident -o*eign 1o*po*ation % i1 %e*e not su$:e1ted to t e pa",ent o- -inal %it olding AAT p*es1*i$ed unde* Se1tion 114BCC o- t e #IRC o- 1227 and unde* Se1 4>102 o- Rev Reg 7-27; Repu$li1 Ce,ent is *e=ui*ed to %it old 10? 1*edita$le AAT on its pa",ents o- se*vi1es to non- *esident -o*eign 1o*po*ation> - Manage,ent &ee BRo"alt"C not su$:e1ted to 1*edita$le %it olding AAT; Repu$li1 Ce,ent availed o- t e Aolunta*" Assess,ent and A$ate,ent P*og*a, BAAAPC and paid t e 10? 1*edita$le %it olding AAT; t e*e-o*e; in1lusion o- t is ite, in t e total de-i1ien1" -inal %it olding AAT is e**oneous> - Retention and Se*vi1e o- <le6 <nginee* - *e1lassi-i1ation ent*" -*o, KP*epaid I,po*tation C a*gesK to a te,po*a*" a11ount K&a1to*" Ledge*K; % i1 ,eans t at t e -i6ed assets %e*e *e1o*ded in t e $oo4s is unve*i-ia$le and sel-se*ving> #o ot e* suppo*ting do1u,ents %e*e p*esented to p*ove t at it %as indeed 1apitali/ed> 0en1e; t is do1u,ent ,e*its ve*" little %eig t and CIRLs assess,ent t e*eon is p*ope*> - J*upp Pol"sius Se*vi1e Cont*a1t G it %as p*oved t at pa",ent %as ,ade to do,esti1 1o*po*ations; t us; t e pa",ents s all not $e su$:e1ted to %it olding o- 1*edita$le AAT> +ut unve*i-ied a,ounts s all $e su$:e1t to %it olding o- -inal AAT > - M0 Claudius <nginee* G is a non-*esident -o*eign 1o*po*ation in 'e*,an"; % ose se*vi1es %e*e engaged $" Repu$li1 Ce,ent to ove*see and supe*vise *e1onst*u1tion o- its Te*esa Plant> Pa",ent o- se*vi1es to +M0 Claudius <nginee*s ,ust $e su$:e1t to %it olding o- -inal AAT> Repu$li1 Ce,ent did not -ile no* *e,it %it olding AAT on pa",ents ,ade to +M0 Claudius <nginee*s; so CIRLs assess,ent s all $e up eld> - Retention and Se*vi1e &ee o- M*> Jadg,ann - M*> Rein a*d Jagd,ann; +M0 Co,,issioning Supe*viso*; is a non-*esident individual engaged $" Repu$li1 Ce,ent to *ende* enginee*ing se*vi1es -o* t e 1onst*u1tion o- Pa14 ouse U Ce,ent Silo P*o:e1t> Cou*t is not 1onvin1ed pa",ent %as -o* *etention -ee -o* t e pu*1 ase o- ,a1 ine*" and e=uip,ent sin1e Repu$li1 Ce,ent p*esented in eviden1e onl" its :ou*nal vou1 e*> I,po*t <nt*" and Inte*nal Revenue do not a1tuall" *e-le1t t e said *etention value to 1o**o$o*ate t e :ou*nal vou1 e*> T us; it s ould $e su$:e1t to %it olding o- 1*edita$le AAT> - +M0 Claudius <nginee* - is a non-*esident -o*eign 1o*po*ation; $ased in 'e*,an"; % ose se*vi1es %e*e engaged $" Repu$li1 Ce,ent -o* t e e*e1tion and 1o,,issioning o- Pa14 ouse #o> 3> Repu$li1 Ce,ent 1lai,s t at *e1lassi-i1ation ent*" -*o, KP*epaid I,po*tation C a*gesK to a -i6ed asset a11ount; KPP< <6pansionK; and not t e a1tual pa",ent to +M0 Claudius

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<nginee*s in 1222; $ut did not su$,it an" ot e* suppo*ting do1u,ents to p*ove> T us; assess,ent t e*eon s all $e up eld>

$NI%N ;AN? %" THE PHILIPPINES v( CIR Ponente9 PALA#CA-<#RIM3<T; J !ate P*o,ulgated9 Ma*1 22; 2011 Topi19 P*es1*iptive pe*iod and ta6 a,nest" "ACTS: 3nion +an4 o- t e P ilippines is a 1o,,e*1ial $an4ing 1o*po*ation; dul" o*gani/ed and e6isting unde* P ilippine la%s> 8n &e$ 2(; 2007; a K)aive* o- t e !e-ense o- P*es1*iption 3nde* t e Statute o- Li,itations o- t e #IRC e6tending t e 3-"ea* p*es1*iptive pe*iod t e assess,ent andFo* 1olle1tion o- de-i1ien1" ta6es -o* 1alenda* "ea* 2004 to !e1 31; 2007 and to June 30; 200. %as e6e1uted $" 3nion +an4> 8n &e$ 12; 200.; 3nion +an4 availed o- t e !a3 Amnesty unde* A 456$. !espite t at; 3nion +an4 *e1eived a P*eli,ina*" Assess,ent #oti1e BKPA#KC -*o, t e +IR; -o* de-i1ien1" %it olding ta6es and !ST -o* 2004; in1lusive o- su*1 a*ge; inte*ests and 1o,p*o,ise penalties> A-te* evaluation o- t e PA#; 3nion +an4 volunta*il" paid t e assess,ents -o* %it olding ta6es on 1o,pensation; e6panded %it olding ta6es; -inal %it olding ta6es-R+3 and -inal %it olding ta6es- &C!3> 0o%eve*; on t e sa,e date; June 30; 200.; petitione* *e1eived a &inal Assess,ent #oti1e BK&A#KC -*o, t e +IR; assessing petitione* o- t e alleged de-i1ien1" %it olding ta6es on 1o,pensation; e6panded %it olding ta6; -inal %it olding ta6es on R+3 and &C!3; and !ST -o* R+3-Spe1ial Savings A11ount and &C!3 -o* 1alenda* "ea* 2004> 8n Jul" 24; 200.; 3nion +an4 -iled a &o*,al Lette* o- P*otest on t e g*ound t at on June 30; 200.; petitione* paid to t e +IR t e de-i1ien1" %it olding ta6es assess,ents on its R+3 and &C!3 t*ansa1tionsE and as *ega*ds t e !ST on Regula* T*ansa1tions; Spe1ial Savings A11ount and &C!3 in t e a,ounts o- P74;0(7;2.7>37; P1.;200;707>70 and P72;71.;770>27; *espe1tivel"; petitione* inte*posed as a de-ense its avail,ent o- t e Ta6 A,nest" P*og*a, unde* A 456$. CIR 1lai,s 3nion +an4 did not su$,it do1u,ents t at %ill su$stantiate its alleged avail,ent o- ta6 a,nest"; t e assess,ents against petitione* -o* de-i1ien1" -inal %it olding ta6 on its on-s o*e in1o,e and !o1u,enta*" Sta,p Ta6 s ould not $e 1an1elled as avail,ent o- ta6 a,nest" as not $e1o,e in1ontesta$le; and &C!3 8ns o*e In1o,e is not e6e,pt -*o, !o1u,enta*" Sta,p Ta6>

68

ISS$E: )8# 3nion +an4 is lia$le -o* de-i1ien1" %it olding ta6es on 1o,pensation; e6panded %it olding ta6es; -inal %it olding ta6es on its R+3 and &C!3> )8# 3nion +an4 is lia$le to t e de-i1ien1" !ST on its &C!3> DECISI%N: #8; #8 HELD: T e Assess,ent #oti1es -o* de-i1ien1" %it olding ta6es on 1o,pensation; e6panded %it olding ta6; -inal %it olding ta6 BR+3C; and -inal %it olding ta6 B&C!3C %e*e issued $e"ond t e 3-"ea* p*es1*iptive pe*iodE 1onse=uentl"; said de-i1ien1" assess,ents s ould ave $een o*de*ed 1an1elled and set aside> Mo*eove*; *e1o*ds also s o% t at on June 30; 200.; petitione* paid t e de-i1ien1" assess,ents -o* %it olding ta6es on 1o,pensation; e6panded %it olding ta6, -inal %it olding ta6- R+3; and -inal %it olding ta6-&C!3> A pe*usal o- t e PA# *eveals t at t e a,ounts o - de-i1ien1" assess,ents -o* %it olding ta6es on 1o,pensation; e6panded %it olding ta6; -inal %it olding ta6; and -inal %it olding ta6-&C!3 a*e in1lusive o- penalties; su1 as de-i1ien1" inte*est i,posed unde* &ection %54 of the "I C of'447, as amended, -*o, t e date p*es1*i$ed -o* t ei* pa",ents until June 30; 200.> Conside*ing t at petitione* paid t e a-o*e-,entioned de-i1ien1" assess,ents on June 30; 200.; t en petitione*Ls pa",ent 1onstitutes -ull pa",ent o- said de-i1ien1" assess,ents> 0en1e; %it ,o*e *easons t at t e de-i1ien1" assess,ents -o* %it olding ta6es on 1o,pensation; e6panded %it olding ta6; -inal %it olding ta6-R+3; and -inal %it olding ta6- &C!3 s ould $e 1an1elled and set aside> As *ega*ds t e de-i1ien1" assess,ent -o* !ST on R+3-Spe1ial Savings A11ount; t e issue is not novel as t e sa,e as al*ead" $een *uled $" t e Sup*e,e Cou*t in a long line o- 1ases> <ven p*io* to t e passage o- A 4%58, a,ending &ection '6$ of the "I C of'447 and *ena,ing it as &ection '74, Spe1ial Savings !eposit A11ounts; t oug eviden1ed %it pass$oo4s; a*e al*ead" su$:e1t to !ST; as t e" a*e 1onside*ed 1e*ti-i1ates o- deposit $ea*ing inte*est on % i1 !ST; unde* &ection '6$ of the "I C of'447, as amended, 1an $e i,posed> As to t e de-i1ien1" assess,ent -o* !ST on petitione*Ls &C!3; %e ag*ee %it CIR t at alt oug P9 '$8:, in *elation to evenue egulations '$-7#, p*ovides t at t e net in1o,e -*o, -o*eign 1u**en1" deposit t*ansa1tions s all $e su$:e1t to 7? ta6; % i1 s all $e in lieu o- all ta6es on said t*ansa1tions; t e p *ase Kin lieu o- all ta6esK %as deleted in &ections %7/90/80 and %6/70/b0 of A 65%5, ot e*%ise 4no%n as Kt e #IRC o- 1227K; % i1 too4 e--e1t on Janua*" 1; 122.> Settled is t e *ule t at a,end,ent $" deletion o- 1e*tain %o*ds o* p *ases in t e statute indi1ates t at t e legislato*s intended to 1 ange t e ,eaning o- t e statute> T us; $" vi*tue o- su1 deletion; evenue egulations '$-7#, % i1 i,ple,ented t e old la%; is no longe* appli1a$le> In ot e* %o*ds; t e pa",ent o- t e 10? -inal ta6 on &C!3 in1o,e does not e6e,pt petitione* -*o, pa",ent o- t e !ST on su1 t*ansa1tions> T at &C!3 ta6 e6e,ption -*o, all ot e* ta6es %as deleted $" t e "I C of'447, as amended, is $olste*ed $" t e -a1t t at on Ap*il 2.; 2004; t e

6:

Cong*ess ena1ted A 4%45 KAn A1t Resto*ing t e Ta6 <6e,ption o- 8--s o*e +an4ing 3nits B8+3sC and &o*eign Cu**en1" !eposit 3nits B&C!3sC; A,ending -o* t e Pu*pose Se1tion 27B$C and Se1tion 2.; pa*ag*ap s BACB4C and BACB7C> ot e #ational Inte*nal Revenue Code as A,endedK> T e a1t o- Cong*ess in *esto*ing t e ta6 e6e,ption o- &C!3s 1lea*l" s o%s t at p*io* to t e e--e1tivit" o- A 4%45, on Ma" 20; 2004; &C!3s a*e su$:e1t to 10? -inal ta6 and not e6e,pt -*o, t e pa",ent o- all ot e* ta6es; as p*ovided in &ection %7/90/80 and &ection %6;A0;70 of the "I C of '447. 8t e*%ise; 1o,,on sense di1tates t at Cong*ess %ill not *esto*e an e6e,ption t at is al*ead" e6isting> 0o%eve*; 1onside*ing t at t e de-i1ien1" assess,ent -o* !ST on &C!3 t*ansa1tions against petitione* is -o* ta6a$le "ea* 2004; sta*ting Ma" 20; 2004; t e date o- e--e1tivit" o- A 4%45, petitione*Ls &!C3 t*ansa1tions; e61ept net in1o,e -*o, su1 t*ansa1tions; as ,a" $e spe1i-ied $" t e Se1*eta*" o- &inan1e; a*e no% e6e,pt -*o, all ta6es; in1luding t e p*esent assess,ent -o* de-i1ien1" !ST; pu*suant to &ection ' of A 4%45, % i1 p*ovides -o* an all in1lusive e6e,ption -*o, all ot e* ta6es> #ote t at on &e$*ua*" 12; 200.; 3nion +an4 availed o- t e Ta6 A,nest" unde* A 456$, &ection # of A 456$ p*ovides t at a ta6pa"e* % o availed ot e ta6 a,nest" unde* &ection : of A 456$ and as -ull" 1o,plied %it all its 1onditions s all $e i,,une -*o, t e pa",ent o- ta6es; as %ell as additions t e*eto; and t e appu*tenant 1ivil; 1*i,inal o* ad,inist*ative penalties unde* t e "I C of'447, as amended, a*ising -*o, t e -ailu*e to pa" an" and all inte*nal *evenue ta6es -o* ta6a$le "ea* 2007 and p*io* "ea*s> Conside*ing t at !ST is one o- t e ta6es 1ove*ed $" t e Ta6 A,nest" P*og*a, unde* A 456$, 3nion +an4 is i,,une -*o, t e pa",ent o- ta6es; as %ell as additions t e*eto; and t e appu*tenant 1ivil; 1*i,inal o* ad,inist*ative penalties unde* t e "I C of'447, as amended, a*ising -*o, its -ailu*e to pa" an" and all inte*nal *evenue ta6es -o* ta6a$le "ea* 2007 and p*io* "ea*s> Also note t at t e one "ea* pe*iod allo%ed $" &ection 5 of A 456$ to initiate p*o1eedings to ove*tu*n t e p*esu,ption o- 1o**e1tness ot e SAL# ad al*ead" p*es1*i$ed> T e*e is no ot e* *e1ou*se $ut to 1an1el t e de-i1ien1" assess,ents -o* !ST on B1C R+3-Regula* T*ansa1tions on t e g*ound t at t e Assess,ent #oti1e %as issued $e"ond t e p*es1*iptive pe*iod to assess and in vie% o- petitione*Ls avail,ent o- Ta6 A,nest" unde* A 456$< and B2C R+3-Spe1ial Savings A11ount; and &C!3; solel" in vie% o3nion +an4Ds avail,ent o- t e Ta6 A,nest" P*og*a, unde* RA 456$.

10

3A&AN v( CIR Ponente9 PALA#CA-<#RIM3<T; J !ate P*o,ulgated9 Ap*il 4; 2011 Topi19 !a3 amnesty. "ACTS: 5a,an La i $eing a non-sto14; non-p*o-it edu1ational institution; % i1 ope*ates t e <,ilio Aguinaldo College; is not su$:e1t to ta6es and duties on all its *evenues and assets; % i1 a*e used a1tuall"; di*e1tl" and e61lusivel" -o* edu1ational pu*poses; as p*ovided unde* A*ti1le SIA; Se1tion 4B3C o- t e 12.7 P ilippine Constitution> 8n Septe,$e* 1.; 200(; 5a,an *e1eived a &inal Assess,ent #oti1e B&A#C and %as assessed de-i1ien1" ta6es o- P24;7.7;273>74 in1lusive o- inte*est and penalt"> 8n Jul" 22; 200.; 5a,an -iled an K8,ni$us Motion -o* Con-i*,ation oPetitione*Ls Rig ts and I,,unities unde* t e Ta6 A,nest" A1t o- 2007E Can1ellation o- Assess,entsE and )it d*a%al o- Petition -o* Revie%;K alleging t at t e assess,ents against petitione* s ould $e 1an1elled sin1e it as al*ead" availed o- t e ta6 a,nest" unde* A456$. T us; on Ma" 22; 2002; t e Cou*t pa*tl" g*anted petitione*Ls K8,ni$us MotionK setting aside petitione*Ls de-i1ien1" assess,ents on in1o,e ta6;

11

value-added ta6 and do1u,enta*" sta,p ta6 solel" in vie% o- petitione*Ls avail,ent o- t e Ta6 A,nest" unde* A 456$. 8n Septe,$e* 30; 200.; t e Cou*t issued a *esolution g*anting 5a,anDs ,otion and 1onside*ed t e p*esent Petition -o* Revie% as %it d*a%n in so -a* as petitione*Ls de-i1ien1" ta6es on in1o,e ta6; value- added ta6 and do1u,enta*" ta6 a*e 1on1e*ned> T us; t e *e,aining de-i1ien1" pe*tains to t e -inal %it olding ta6> ISS$E=s: )o# 5a,an is lia$le -o* de-i1ien1" ta6 . DECISI%N: No. HELD: T e A,ended !e1ision dated &e$*ua*" 7; 2011 *ende*ed $" t e CTA =n (ane; 1onside*ing t e Petition &o* Revie% -iled in C>T>A> as %it d*a%n solel" in vie% o- petitione*Ls avail,ent o- t e Ta6 A,nest" La% o- 1227; t e a$ove-1aptioned 1ase 1s no% 1onside*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 Topi19 &iling o- p*otest on ti,e "ACTS: Caga"an Co*n P*odu1ts Co*po*ation is a do,esti1 1o*po*ation> It is engaged in t e $usiness o- $u"ing; selling o* ot e*%ise dealing in; at % olesale o* *etail; su1 goods as 1o*n sta*1 ; 1o*n oil; 1o*n $*an; and ot e* *elated goods o- si,ila* natu*e> 8n #ove,$e* 1.; 200.; Caga"an *e1eived a &o*,al Lette* o- !e,and dated #ove,$e* 7; 200.; %it atta1 ed !etails o- !is1*epan1ies and Assess,ent #oti1e issued $" t e Regional !i*e1to* o- +IR -inding Caga"an alleged de-i1ien1" e6panded %it olding ta6 in t e total a,ount o- P27;130;074>37 in1lusive o- inte*est> T e*ea-te*; Caga"an p*otested t e &o*,al Lette* o!e,and on #ove,$e* 21 ; 200.> CIR *eplied to t e p*otest $" issuing a lette* dated !e1e,$e* 3; 200. and *e1eived $" Caga"an on !e1e,$e* 22; 200. *eite*ating t e de,and -o* pa",ent o- t e assessed de-i1ien1" e6panded %it olding ta6>

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8n Janua*" 14; 2002; Caga"an *eplied to t e !e1e,$e* 3; 200. lette* o- t e Regional !i*e1to* *eite*ating its position in its lette* dated #ove,$e* 21; 200.> CIR; t *oug t e +IR Regional !i*e1to*; again *eplied on Janua*" 21; 2002 to Caga"anLs lette* dated Janua*" 14; 2002> It ,ust also $e noted t at on Ma*1 7; 2002; Caga"an again %*ote to CIR; see4ing a *e1onside*ation o- t e Regional !i*e1to*Ls position as 1ontained in is lette* o- Janua*" 21; 2002 and *e=uesting t at t e sa,e $e *e1alled and 1an1elled and t at a ne% assess,ent $e issued -o* a lesse* a,ount ode-i1ien1" %it olding ta6> T e sa,e ave*,ents %e*e late* on *eite*ated in Caga"anLs lette* to CIR dated Ma*1 10; 2002> A11o*ding to Caga"an; it is due to CIRLs lette*-*epl" dated Jan 21; 2002 t at it -iled t e instant Petition -o* Revie% on Ma*1 12; 2002> ISS$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; $" t e Co,,issione* o* is dul" aut o*i/ed *ep*esentative; t e ta6pa"e* ,a" appeal to t e Cou*t o- Ta6 Appeals %it in 30 da"s -*o, date o- *e1eipt o- t e said de1ision; ot e*%ise; t e assess,ent s all $e1o,e -inal; e6e1uto*" and de,anda$le9 P*ovided; o%eve*; t at i- t e ta6pa"e* elevates is p*otest to t e Co,,issione* %it in 30 da"s -*o, date o- *e1eipt o- t e -inal de1ision ot e Co,,issione*Ls dul" aut o*i/ed *ep*esentative; t e latte*Ls de1ision s all not $e 1onside*ed -inal; e6e1uto*" and de,anda$le; in % i1 1ase; t e p*otest s all $e de1ided $" t e Co,,issione*> Counting -*o, !e1e,$e* 22; 200.; Caga"an ad until Janua*" 21; 2002 o* 30 da"s %it in % i1 to -ile its :udi1ial appeal> 0o%eve*; instead o- -iling a Petition -o* Revie%; Caga"an -iled on Janua*" 14; 2002 its *epl" to t e lette* issued $" *espondent *eite*ating its position in its p*otest> Caga"an -iled t e instant Petition -o* Revie% on Ma*1 12; 2002 onl"E o$viousl"; $e"ond t e *egle,enta*" pe*iod p*ovided -o* $" la%> An MR o- t e denial o- t e ad,inist*ative p*otest does not toll t e 30-da" pe*iod to appeal to t e CTA> 0en1e; CIRDs denial o- t e p*otest as 1ontained in is lette* *e1eived $" Caga"an on !e1e,$e* 22; 200. as al*ead" $e1o,e -inal and e6e1uto*" upon t e e6pi*ation o- t e 30-da" pe*iod to appeal> CTA is a 1ou*t o- spe1ial :u*isdi1tion and as su1 it 1an ta4e 1ogni/an1e onl" o- su1 ,atte*s as a*e 1lea*l" %it in its :u*isdi1tion> ) ile t e *ig t to appeal a de1ision o- t e Co,,issione* to t e CTA is ,e*el" a statuto*" *e,ed"; t e *e=ui*e,ent t at it ,ust $e $*oug t %it in 30 da"s is :u*isdi1tional> Caga"anDs -ailu*e to 1o,pl" %it t e 30-da" pe*iod p*ovided unde* t e Revised Rules o- t e Cou*t o- Ta6 Appeals as %ell as t e #IRC %ould indeed $a* t e appeal and t us; %ould e--e1tivel" *e,ove t e instant 1ase -*o, t e a,$it o- t is Cou*tLs :u*isdi1tion>

16

PHILE@ v CIR Ponente: Palan1a-<n*i=ue/ Date Promulgated: Ap*il 13;2011 To i!: Re-und "ACTS: P ile6 -iled %it +IR its 8*iginal AAT Retu*n -o* t e 2 nd Mua*te* o- 200(> T en it -iled an A,ended AAT Retu*n s o%ing a total /e*o-*ated sales oP p2;177;274;170>(.; do,esti1 pu*1 ases o- goods a,ounting to P p220;0.2>27 %it input ta6 o- P p11;244;121>32> P ile6 -iled its 1lai, -o* *e-und o* ta6 1*edit %it t e one-stop-s op 1ente* ot e !epa*t,ent o- &inan1e in t e a,ount o- P p11;270;(02>23> !ue to CIRDs ina1tion; P ile6 -iled t is Petition -o* Revie%

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P4ile8#s Contention: P ile6 is entitled to a *e-und allegedl" *ep*esenting e61ess input ta6es -o* t e 2nd =ua*te* o- 200( CIR#s Contention: T e 1lai, o- *e-und is still unde* investigation $" t e +u*eau> T e g*ant o- 1lai, -o* *e-und is tanta,ount to an e6e,ption -*o, ta6ation % i1 is 1onst*ued st*i1tl" against t e 1lai,ant and in -avo* o- t e ta6ing aut o*it"> T e ta6es soug t to $e *e-unded %e*e paid in a11o*dan1e %it la% ISS$E: ) et e* o* not P ile6 is entitled to a *e-und o* issuan1e o- TCC in t e total a,ount o- P p11;270;(02>23; allegedl" *ep*esenting e61ess input -o* 2 nd =ua*te* o- 200( DECISI%N: Petition dis,issed -o* aving $een -iled late> HELD: In o*de* to $e entitled to a *e-und o* issuan1e o- TCC o- input AAT paid; petitione* ,ust p*ove t e -ollo%ing9 B1C Clai,ant ,ust $e a AAT-*egiste*ed pe*sonE B2C T e*e ,ust $e /e*o-*ated o* e--e1tivel" /e*o-*ated salesE B3C Input ta6es %e*e in1u**ed o* paidE B4C Su1 input ta6es a*e att*i$uta$le to said /e*o-*ated o* e--e1tivel" /e*o-*ated salesE B7C Said input ta6es %e*e not applied against an" output AAT lia$ilit"E and B(C T e 1lai, -o* *e-und %as -ailed %it in t e p*es1*iptive pe*iod P ile6 s ould $e a$le to p*ove t e a$ove *e=ui*e,ents Pu*suant to Se1 112 #IRC; petitione* ,a" appl" -o* *e-und %it in 2 "*s -*o, t e 1lose o- t e ta6a$le =ua*te* % en t e *elevant sales %e*e ,ade> T e su$:e1t 1lai, 1ove*s 2nd =ua*te* o- 200(; P ile6 ad until June 30;200.; %it in % i1 to -ile its ad,inist*ative 1lai, -o* *e-und> Sin1e t e 1lai, oP ile6 %as -iled Jan 10;2007; it %as -iled on ti,e> 0o%eve*; not%it standing t e ti,el" -iling o- t e ad,in 1lai,; CTA denied t e petition -o* aving $een -iled late; %a" $e"ond t e pe*iod p*es1*i$ed in Se1 112 #IRC12 % i1 p*ovides t at t e Co,,issione* as one und*ed
12

SEC( //)( Refunds or Tax Credits of Input Tax. (A) Zero-Rated or Effectively Zero-Rated Sales. - an" AAT-*egiste*ed pe*son; % ose sales a*e /e*o*ated o* e--e1tivel" /e*o-*ated ,a"; %it in t%o B2C "ea*s a-te* t e 1lose o- t e ta6a$le =ua*te* % en t e sales %e*e ,ade; appl" -o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate o* *e-und o- 1*edita$le input ta6 due o* paid att*i$uta$le to su1 sales; e61ept t*ansitional input ta6; to t e e6tent t at su1 input ta6 as not $een applied against output ta69 P*ovided; o%eve*; T at in t e 1ase o- /e*o-*ated sales unde* Se1tion 10(BACB2C BaCB1C; B2C and B+C and Se1tion 10. B+CB1C and B2C; t e a11epta$le -o*eign 1u**en1" e61 ange p*o1eeds t e*eo- ad $een dul" a11ounted -o* in a11o*dan1e %it t e *ules and *egulations o- t e +ang4o Sent*al ng

12

t%ent" B120C da"s -*o, t e su$,ission o- suppo*ting do1u,ents to de1ide t e 1lai, -o* *e-und> In 1ase o- -ull o* pa*tial denial; o* ina1tion; t e ta6pa"e* ,a" appeal to CTA; %it in t i*t" B30C da"s -*o, *e1eipt o- t e de1ision o* -*o, t e lapse o- t e one und*ed t%ent" B120C da" pe*iod> To illust*ate9 &*o, Jan 10; 2007 Bdate o- 1lai,C; t e CIR ad 120 da"s ; o* until Ma" 10;2007; %it in % i1 to de1ide t e 1lai,> )it in 30 da"s -*o, t e lapse o- 120-da" pe*iod; o* -*o, ,a"11until June 2; 2007; P ile6 s ould ave elevated its 1lai, -o* *e-und to CTA> T us; P ile6 ad until June 2 %it in % i1 to elevate its 1lai, on t e g*ound o- CIRDs ina1tion> 0o%eve*; *e1o*ds s o%ed t at P ile6 -iled t e p*esent Petition on June 27;200.> P ile6D -ailu*e to 1o,pl" %it t e 30-da" pe*iod $a**ed t e appeal and %a**ants t e dis,issal o- t e petition; as t e CTA as not a1=ui*ed :u*isdi1tion ove* t e sa,e

PCS% v CIR Ponente: Palan1a-<n*i=ue/ Date Promulgated: Ap*il 17;2011 To i!: I,position o- !o1u,enta*" Sta,p Ta6 "ACTS: P ilippine C a*it" S%eepsta4es 8--i1e BPCS8C ope*ates $" vi*tue o- its 1 a*te*; RA 11(2> It is t e p*in1ipal gove*n,ent agen1" to *aise and p*ovide
Pilipinas B+SPC9 P*ovided; -u*t e*; T at % e*e t e ta6pa"e* is engaged in /e*o-*ated o* e--e1tivel" /e*o*ated sale and also in ta6a$le o* e6e,pt sale o- goods o- p*ope*ties o* se*vi1es; and t e a,ount o1*edita$le input ta6 due o* paid 1annot $e di*e1tl" and enti*el" att*i$uted to an" one o- t e t*ansa1tions; it s all $e allo1ated p*opo*tionatel" on t e $asis o- t e volu,e o- sales> 1*ala% (;) Capital oods.- A AAT-*egiste*ed pe*son ,a" appl" -o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate o* *e-und o- input ta6es paid on 1apital goods i,po*ted o* lo1all" pu*1 ased; to t e e6tent t at su1 input ta6es ave not $een applied against output ta6es> T e appli1ation ,a" $e ,ade onl" %it in t%o B2C "ea*s a-te* t e 1lose o- t e ta6a$le =ua*te* % en t e i,po*tation o* pu*1 ase %as ,ade> (C) Cancellation of VAT Registration. - A pe*son % ose *egist*ation as $een 1an1elled due to *eti*e,ent -*o, o* 1essation o- $usiness; o* due to 1 anges in o* 1essation o- status unde* Se1tion 10(BCC o- t is Code ,a"; %it in t%o B2C "ea*s -*o, t e date o- 1an1ellation; appl" -o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate -o* an" unused input ta6 % i1 ,a" $e used in pa",ent o- is ot e* inte*nal *evenue ta6es> (D) $eriod %it#in %#ic# Refund or Tax Credit of Input Taxes S#all &e 'ade. - In p*ope* 1ases; t e Co,,issione* s all g*ant a *e-und o* issue t e ta6 1*edit 1e*ti-i1ate -o* 1*edita$le input ta6es %it in one und*ed t%ent" B120C da"s -*o, t e date o- su$,ission o- 1o,pete do1u,ents in suppo*t o- t e appli1ation -iled in a11o*dan1e %it Su$se1tions BAC and B+C e*eo-> In 1ase o- -ull o* pa*tial denial o- t e 1lai, -o* ta6 *e-und o* ta6 1*edit; o* t e -ailu*e on t e pa*t o- t e Co,,issione* to a1t on t e appli1ation %it in t e pe*iod p*es1*i$ed a$ove; t e ta6pa"e* a--e1ted ,a"; %it in t i*t" B30C da"s -*o, t e *e1eipt o- t e de1ision den"ing t e 1lai, o* a-te* t e e6pi*ation o- t e one und*ed t%ent" da"-pe*iod; appeal t e de1ision o* t e una1ted 1lai, %it t e Cou*t o- Ta6 Appeals> (E) 'anner of iving Refund. - Re-unds s all $e ,ade upon %a**ants d*a%n $" t e Co,,issione* o* $" is dul" aut o*i/ed *ep*esentative %it out t e ne1essit" o- $eing 1ounte*signed $" t e C ai*,an; Co,,ission on audit; t e p*ovisions o- t e Ad,inist*ative Code o- 12.7 to t e 1ont*a*" not%it standing9 P*ovided; T at *e-unds unde* t is pa*ag*ap s all $e su$:e1t to post audit $" t e Co,,ission on Audit>

1/

-unds -o* ealt p*og*a,s and 1 a*ities o- national 1 a*a1te*> It li4e%ise as t e gene*al po%e* and aut o*it" to old and 1ondu1t 1 a*it" s%eepsta4es *a1es; lotte*ies; a,ong ot e*s> &e$ 2002; a Lette* o- Aut o*it" %as issued $" t e La*ge Ta6pa"e*s Se*vi1e BLTSC; in-o*,ing PCS8 t at t e *evenue o--i1e*s a*e aut o*i/ed to e6a,ine PCS8Ds $oo4s o- a11ounts and t ei* a11ounting *e1o*ds -o* !ST -o* t e pe*iod o- Jan 1;200. to !e1 31; 200.> Sept 2002; PCS8 *e1eived a P*eli,ina*" Assess,ent #oti1e BPA#C -*o, t e LTS; in-o*,ing PCS8 o- its alleged de-i1ien1" !ST -o* 1alenda* 200.> T e*ea-te*; PCS8 *e1eived a &o*,al Lette* o- !e,and and &inal Assess,ent #oti1es B&A#C> A11o*ding to &A#; PCS8 %as assessed de-i1ien1" !ST in t e a,ount o- P p777;27(;427>72> PSC8 -iled its p*otest lette* to t e &A# 1 allenging t e legal $ases o- t e assess,ents ,ade $" t e LTS !ivision> &e$ 2010; PCS8 *e1eived +IRDs &inal !e1ision> PCS8 appealed t is de1ision $" %a" o- t e instant Petition -o* Revie% PCS%#s Contention: PSC8 is e6e,pt -*o, !ST on t e sale o- lotto ti14ets pu*suant to its 1 a*te*; RA 11(2 BPCS8 C a*te*C PCS8 C a*te* e6e,pts o*se *a1es and sale o- ti14ets in s%eepsta4es -*o, all ta6es; e61ept t at ea1 ti14et s all $ea* a t%elve 1entavo inte*nal *evenue sta,p> T us; it is not lia$le -o* de-i1ien1" !ST on t e sale o- lotto ti14ets -o* ta6a$le "ea* 200.> PCS8 C a*te* %as no *epealed; a,ended o* ,odi-ied $" t e *epealing 1lause o- RA .424> CIR#s Contention: PCS8 is estopped -*o, *aising an" a*gu,ent to t at e--e1t t *oug volunta*" 1o,plian1e % en it paid !ST on its lotte*" ti14ets al$eit t *oug an e**oneous $asis o- t e *ate> PCS8 200. as $een dul" app*ised o- its de-i1ien1" !ST lia$ilities -o* ta6a$le "ea*

ISS$E: ) et e* PCS8 is lia$le -o* !ST on t e sale -o* Lotto ti14ets and ot e* ti14ets -o* ot e* ga,es $ased on Se1 120 #IRC DECISI%N: Petition is pa*tl" g*anted> PCS8 is o*de*ed to pa" CIR P p 70; 271;420>72; *ep*esenting de-i1ien1" !ST; in1luding su*1 a*ge and inte*est -o* ta6a$le "ea* 200. HELD:

19

Se1 120 #IRC13 i,poses !ST on ea1 :ai-alai; o*se *a1e ti14et; lotto o* ot e* aut o*i/ed nu,$e* ga,es; % ile Se1 4 o- RA 11(2 e6p*essl" e6e,pts -*o, all ta6es onl" o*se *a1es and sale o- s%eepsta4es ti14ets> PCS8Ds 1 a*te* doesnDt p*ovide t at t e sale o- lotto ti14ets is e6e,pt -*o, pa",ent ota6es> T e e6p*ess in1lusion o- o*se *a1es and sale o- s%eepsta4es ti14ets is a 1lea* e61lusion o- an"t ing un,entioned as e6e,pt -*o, all ta6es> 0ad t e legislatu*e intended t e sale o- lotto ti14ets to $e e6e,pted -*o, all ta6es; it 1ould ave easil" done so $" 1lea* and 1on1ise language> PCS8 is lia$le to pa" !ST on t e sale o- lotto ti14ets> Pu*suant to Se1 120 #IRC; PCS8 s all pa" a !ST o- ten 1entavos B>p p0>10C -o* eve*" one peso BP p1>0C o* an e=uivalent *ate o- 10? on t e sale o- ea1 lotto ti14et> T e $asis o- t e 10? !ST is t e 1ost o- t e lotto ti14et> Re1o*ds s o% t at PCS8 paid t e !ST on t e sale o- lotto ti14ets $ased on t e net a,ount osales onl"> It s ould t e*e-o*e; $e eld lia$le to pa" t e di--e*en1e $et%een t e g*oss sales and net a,ount o- sales> PCS8 is also lia$le to pa" su*1 a*ge and de-i1ien1" inte*est -o* t e late pa",ent o- !ST

LA S$ERTE CI'AR v CIR Ponente: Palan1a-<n*i=ue/

16

SEC( /+2( Sta"p Tax on (ai-Alai) *orse Racing Tic+ets) lotto or ,t#er Aut#ori-ed Nu"&ers a"es. * 8n ea1 :ai-alai; o*se *a1e ti14et; lotto; o* ot e* aut o*i/ed nu,$e* ga,es; t e*e s all $e 1olle1ted a do1u,enta*" sta,p ta6 o- Ten 1entavos BP0>10C9 Provided, T at i- t e 1ost o- t e ti14et e61eeds 8ne peso BP1>00C; an additional ta6 o- Ten 1entavos BP0>10C on eve*" 8ne peso BP1>00; o* -*a1tional pa*t t e*eo-; s all $e 1olle1ted>

18

Date Promulgated: Ap*il 2(; 2011 To i!: "ACTS: T e Se1*eta*" o- &inan1e BS8&C issued RR #p> 1-27 p*es1*i$ing t e spe1i-i1 ta6 ,et od in 1o,puting t e e61ise ta6 on 1iga*s and 1iga*ettes and i,ple,enting Se1 147 #IRC> T e RR 1lassi-ies $*ands 1iga*ettes into9 a> dul" *egiste*ed o* e6isting $*and 1iga*ettesE $> ne% $*andsE 1> va*iant o- a $*and; as de-ined unde* Se1 2> In June 1222; a-te* t e su*ve" 1ondu1ted pu*suant to t e RR; La Sue*teDs ne% $*ands9 Ast*o Ment ol; Ast*o &ilte* Jing; Ast*o Ment ol Jing; Me,p is Ment ol 100s and Me,p is &ilte* Jing %e*e 1lassi-ied unde* t e P p 1>00 spe1i-i1 ta6; pe* pa14> T e said e61ise ta6 %as auto,ati1all" in1*eased $" 12? o* P p1>12 pe* pa14 on Jan 2000; pu*suant to Se1 147 #IRC In &e$ 2003; S8& issued RR #o 2-2003 a,ending RR #o 1-27; p*es1*i$ing t e ,anne* $" % i1 t e 1u**ent net *etail p*i1e o- t e ne% $*ands o- 1iga* and 1iga*ettes and t e va*iants o- ne% $*ands 1an $e esta$lis ed -o* pu*poses odete*,ining t ei* *espe1tive spe1i-i1 ta6 1lassi-i1ation> T e ne% RR p*ovides -o* a pe*iodi1 *evie% and dete*,ination o- t e 1u**ent ne% *etail p*i1e o- ne% $*ands at an inte*val o- 2 "*s Anot e* RR %as issued; RR 22-2003 in Aug 2003> T is *esulted to t e *e1lassi-i1ation o- La Sue*teDs ne% $*ands -*o, P p1>12 to P p7>2 pe* pa14 e61ise ta6 $*a14et La Sue*te -iled a 1o,plaint -o* in:un1tion %it p*a"e* -o* TR8 %it RTC; assailing t e 1onstitutionalit" o- RR 2-2003 and 22-2003; in so -a* as t e" *e=ui*e pe*iod *e1lassi-i1ation o- ne% $*ands -o* $eing violative o- uni-o*,it" and e=ual p*ote1tion 1lauses o- t e Constitution> RTC de1la*ed t e RRs un1onstitutional> ) ile t e 1ivil 1ase %as pending; La Sue*te ad $een allegedl" pa"ing t e e61ise and AAT o- P p 7>(0> In total it ad paid P p227;222;010>.4 !e1 2007; La Sue*te -iled an ad,inist*ative 1lai, -o* *e-und %it +IR -o* P p227;222;010>.4> +e1ause o- t e ina1tion o- +IR; La Sue*te -iled t is Petition -o* Revie% La Suerte#s Contention: It is entitled to a *e-und o- t e e61ise and AAT ta6es it e**oneousl" paid> T e Revenue Regulations a*e un1onstitutional in so -a* as t e" *e=ui*e t e pe*iodi1 *e1lassi-i1ation o- ne% $*ands -o* $eing violative o- t e uni-o*,it" and e=ual p*ote1tion 1lauses o- t e Constitution CIR#s Contention: La Sue*teDs 1lai, is still unde* investigation> It ,ust p*ove t at t e alleged a,ount *e-unded %as e**oneousl" 1olle1ted

1:

ISS$E: ) et e* o* not La Sue*te is entitled to t e *e-und o- t e e61ise and AAT ta6es it paid DECISI%N Petition is pa*tl" ,e*ito*ious> La Sue*te is entitled onl" t e *e-und on <61ise ta6; not on t e AAT HELD T e Sup*e,e Cou*t al*ead" eld in S8& v La Sue*te Ciga* 14; t e RRs in =uestion a*e void in so -a* as t e" e,po%e* +IR to pe*iodi1all" *evie% o* *edete*,ine t e 1u**ent net *etail p*i1es o- 1iga*ettes -o* pu*poses o- updating t ei* ta6 1lassi-i1ation eve*" 2 "ea*s> La Sue*teDs 1lai, %as -iled on ti,e and it as -ull" su$stantiated it 1lai, -o* *e-und on t e e61ise ta6> 0o%eve*; it -ailed to p*esent eviden1e; su1 as *e1eipts and invoi1es; to p*ove its input AAT 1*edits> T us; t e *e-und %ill onl" $e on t e e**oneousl" 1olle1ted e61ise ta6>

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

11

Secretar, of ;inance v La Suerte 7i*ar< 28: S7' 92<8/-89

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Ponente: +autista Date Promulgated: Ma" 13;2011 To i!: Clai, -o* *e-und o* issuan1e o- TCC "ACTS Toledo -iled an ad,inist*ative 1lai, o- *e-und and issuan1e o- ta6 1*edit 1e*ti-i1ate BTCCC o- its unutili/ed input AA5 on do,esti1 pu*1 ases ogoodsFse*vi1es and i,po*tation o- goods *elated to 0-*ated sale o- se*vi1es in e a,ount o- P p 14;274;013>27 CIR issued a Lette* o- Aut o*it" BLAC dated &e$ 2004; t en issued a P*eli,ina*" Assess,ent #oti1e BPA#C> T e PA# alleged t at t e*e a*e disallo%ed input ta6es; un*e1ogni/ed output AAT on sales t at *esulted to de-i1ien1" AAT pa"a$leE and t at -ailu*e to pa" t e *egist*ation -ee plus su*1 a*ge and inte*est> Ap*il 200(; a &o*,al Lette* o- !e,and %it details o- dis1*epan1ies and assess,ent noti1es %as *e1eived $" Toledo> Ma" 200(; Toledo -iled a p*otest on t e assess,ents> Jul" 200(; Toledo *e1eived a lette* -*o, +IR *e=uesting do1u,enta*" eviden1e -o* p*ope* evaluation o- t e p*otest> CIR o%eve*; -ailed to *esolve ToledoDs p*otest; t us; Toledo -iled a Petition -o* Revie% %it CTA &e$ 2007 Toledo#s Contentions: Ci* as lost t e *ig t to assess t e de-i1ien1" AAT and annual *egist*ation -ees $" *eason o- p*es1*iption> Se1 203 #IRC p*ovides t at +IR is given t e po%e* to assess ta6es %it in 3 "ea*s a-te* t e last da" p*es1*i$ed $" la% -o* t e -iling o- t e *etu*n> Sin1e it did not sign a %aive* o- t e de-ense op*es1*iption; t e assess,ent as al*ead" p*es1*i$e> T e assess,ent is void -o* -ailu*e o- CIR to 1lea*l" and p*ope*l" in-o*, petitione* o- t e -a1ts and la% on % i1 t e assess,ent is ,ade CIR#s Contentions: A-te* a t o*oug investigation -o* ta6a$le "ea* 2002; Toledo as in1o,e su$:e1t to AAT *eali/ed -*o, t e sale o- s1*ap to va*ious $u"e*> T e*e a*e sales su$:e1t to AAT %it ,issing invoi1es % i1 a,ounted to P p 1.7;3(4;417>00 % i1 *ep*esent 2.? o- t e total sales su$:e1t to AAT -o* 2002> T e*e %as a su$stantial unde* de1la*ation o- ta6a$le sales; *e1eipts; o* in1o,e % i1 1onstitute a p*i,a -a1ie eviden1e o- -*audulent *etu*n> T is; +IR is g*anted t e *ig t to assess %it in 10 "ea*s a-te* dis1ove* o- t e -alsit" ISS$E ) et e* o* not t e assess,ent ,ade $" CIR is valid DECISI%N #o> T e assess,ents -o* de-i1ient AAT and annual *egist*ation -ee issued $" CIR a*e 1an1elled> HELD

21

T e lette* o- de,and and t e details t e*ein %e*e not su--i1ient to a--o*d Toledo o- t e oppo*tunit" to intelligentl" ans%e* t e assess,ent and p*epa*e -o* do1u,enta*" eviden1e> CIR -ailed to indi1ate t e $asis o- t e disallo%an1e o- t e input ta6es> &u*t e*; CIR negle1ted to state t e s1 edule o- t e supposed disallo%ed input TAS T e Sup*e,e Cou*t in CIR v <n*on Su$i1 eld t at9 HT e la% *e=ui*es t at t e legal and -a1tual $ases o- t e assess,ent $e stated in t e -o*,al lette* ode,and and assess,ent noti1e> Su1 1annot $e p*esu,ed>I Rega*ding t e pe*iod -o* assess,ent9 t e 3 "ea* pe*iod to assess 1o,,en1es -*o, t e date o- a1tual -iling o- t e *etu*n o* -*o, t e last da" p*es1*i$ed $" la% -o* t e -iling o- su1 *etu*n; % i1 eve* 1o,es late*> T e*e-o*e; t e last da" to -ile and pa" AAT is on t e 27 t da" -ollo%ing t e 1lose o- ea1 ta6a$le =ua*te*> I- t e *etu*n %as -iled $e"ond t e p*es1*i$ed pe*iod; t e 3 "ea*s s all $e 1ounted -*o, t e da" t e *etu*n %as -iled> T e &A# issued $" CIR %as $e"ond t e pe*iod> T e 10 "ea* pe*iod e*e %ill not appl" sin1e CIR -ailed to p*ove -*aud> > Sin1e t e assess,ent is invalid; it 1ant $e t e $asis to 1olle1t ta6 Rega*ding t e annual -ee9 it %as p*oved t at Toledo sa,e> ad al*ead" paid t e

22

;$SINESS PR%CESS %$TS%$RCIN' (;P%) v CIR Ponente: Cotang1o-Manalastas Date Promulgated: &a7 /A6)2// To i!: Clai, -o* *e-und o* issuan1e o- TCC "ACTS +P8 -iled its &inal Co*po*ate Annual In1o,e Ta6 Retu*n BITRC on Ma* 10;200( -o* ta6a$le "ea* ended !e1 31;2004> It *e-le1ted a ta6a$le in1o,e o- P p 12;22.;373>77; % i1 *esulted in an in1o,e ta6 due a,ounting to P p 4;137;073>00> T e ta6 in1o,e due %as o--set against t e P p 13;712;311 p*io* "ea*Ds e61ess 1*edits and 1*edita$le ta6es -o* all t e =ua*te*s o- 2004; t e*e$" leaving an e61ess ta6 1*edit o* ove*pa",ent o- P p 2;3.2;23.>00 &o* t e ove*pa",ent; +P8 opted to $e *e-unded> &o* ta6a$le "ea* ended !e1 31;2007; +P8 -iled its ITR on Ma" 2; 200( % e*e it de1la*ed a ta6a$le in1o,e o- P p 1.;(4(;..4>00; % i1 *esulted in an in1o,e ta6 due a,ounting to P p(;0(0;237> A-te* dedu1ting -*o, its in1o,e ta6 due against it 1*edita$le ta6es -o* all t e =ua*te*s o- 2007; +P8 %as le-t %it an ove*pa",ent o- P p 3;.71;407> Again; +P8 1 ose to $e *e-unded -o* t e ove*pa",ent o- P p 3;.71;407> Ma* 2007; +P8 -iled a 1lai, -o* *e-und o* issuan1e o- TCC -o* ta6a$le "ea*s 2004 and 2007 in t e agg*egate a,ount o- P p13;273;(47> Sin1e +IR did not a1t on t e 1lai,; +P8 -iled a Petition -o* Revie% %it CTA ;P%#s Contention: +P8 1lai,s t at du*ing t e ta6a$le "ea* 2004; it ad 1*edita$le in1o,e ta6es %it eld in t e agg*egate a,ount o- P p12;722;043>00 and t at a-te* o--setting its 2004 in1o,e ta6 due -*o, t e p*io* "ea*Ds e61ess 1*edits and a po*tion o- t e 2004 ta6 1*edits; its still ad e61ess 1*edita$le %it olding in1o,e ta6es -*o, 2004 in t e a,ount o- P p2;3.2;23.>00> 8n t e -a1e ot e ITR; it indi1ated its intention o- -iling a 1lai, -o* *e-und> T e sa,e is t*ue %it t e ta6a$le in1o,e -o* 2007 CIR#s Contention: T e 1lai, is still unde* investigation> +P8 -ailed to p*ove t at t e su$:e1t ta6 %as e**oneousl" o* illegall" 1olle1ted ISS$ES: B1C ) et e* o* not t e 1lai, o- *e-und %as -iled %it in t e 2 "ea* p*es1*iptive pe*iod B2C ) et e* o* not +P8 is entitled -o* t e *e-und DECISI%N Petition denied> Ruled in -avo* o- CIR

26

HELD: B1C +P8Ds 1lai, %as -iled on ti,e> +P8 -iled ITRs on Ma* 10 and Ma" 2 200(> It -iled its ad,inist*ative 1lai, -o* *e-und -o* 2004 and 2007 on Ma* 30;2007E % ile its :udi1ial 1lai, %as -iled Ap*il 2007> +ot -iling o- 1lai,s %e*e ,ade %it in t e 2 "ea* p*es1*iptive pe*iod B2C 2 8ptions a*e availa$le to an" 1o*po*ation entitled to a ta6 1*edit o* *e-und o- t e e61ess esti,ated =ua*te*l" in1o,e ta6es paid9 1> To 1a**" ove* t e e61ess 1*edit o* 2> To $e 1*edited o* *e-unded %it t e e61ess a,ount paid> Se1 7( #IRC p*ovides t at on1e t e option to 1a**" ove* t e e61ess 1*edits as $een ,ade; t e sa,e s all $e 1onside*ed i**evo1a$le -o* t at ta6a$le pe*iod> T e alte*natives a*e alte*native T e -ollo%ing a*e t e 1onditions -o* t e g*ant o- 1lai, -o* *e-und o- 1*edita$le %it olding9 1> T e 1lai, is -iled %it t e CIR %it in t e 2 "ea* pe*iod -*o, t e date o- pa",ent ota6E 2> t e -a1t o- %it olding is esta$lis ed $" a 1op" o- a state,ent dul" issued $" t e pa"o* to t e pa"ee s o%ing t e a,ount paid and t e a,ount o- t e ta6 %it eld t e*e-*o,> 3> It is s o%n on t e *etu*n o- t e *e1ipient t at t e in1o,e pa",ent *e1eived %as de1la*ed as pa*t o- t e g*oss in1o,e> T e 1o,,issioned CPA -ound t at +P8 %as a$le to su$stantiate its 1*edita$le %it olding ta6es -o* 2004 and 2007> 0o%eve*; +P8 -ailed to p*ove t at t e in1o,e -*o, % i1 t e ta6es %e*e %it eld %e*e in1luded in t e *etu*n o- t e *e1ipient> +P8 ,a*4ed t e option9 To $e *e-unded in t e -a1e o- its ITR -o* 2004 and 2007> 0o%eve*; it did not p*esent its ITR -o* 200( and 2007 s o%ing t at it did not 1a**" ove* t e e61ess C)T o- t e p*evious ta6a$le "ea*s> T e CTA 1ant as1e*tain % et e* o* not +P8 o*iginall" 1a**ied ove* t e 1lai,ed e61ess C)T> T e 1lai, -o* *e-und is denied>

21

CHE0R%N H%LDIN'S INC v CIR Ponente: Palan1a-<n*i=ue/ Date Promulgated: June 2; 2011 To i!9 Pe*iod %it in % i1 to -ile appeal -o* 1lai,s o- input AAT *e-und BSe1> 112-CC "ACTS9 Petitione* C ev*on 0oldings In1 B-o*,e*l" Calte6 Asia LtdC is a R80M li1ensed as su1 %it t e S<C> It is also *egiste*ed %it t e +IR as a AAT ta6pa"e*> It -iled %it t e +8R its Mua*te*l" AAT *etu*ns -o* 2007 on9 Ap*il 22; 2007E Jul" 22; 2007EJan 27; 200(E and Ap* 27; 200(> 8n Ma" 17; 200(; it -iled its ad,inist*ative 1lai, -o* *e-und -o* unutili/ed input AAT -o* t e -ou* =ua*te*s o- 2007> !ue to t e +IRDs ina1tion; it -iled %it t e CTA a petition -o* *evie% on Ap*il 20; 2007> Rega*ding Petitione* and RespondentsD 1ontentions9 T e*e %e*e seve*al e**o*s assigned $" Petitione* and *aised $" Respondent; $ut t e 1ase %as disposed on t e issue o- ti,eliness> ISS$E9 )o# t e petition s ould $e dis,issed -o* $eing -iled out o- ti,e> DECIS%N9 5<S> HELD9 Se1> 112 o- t e #IRC p*ovides9 BAC 66 BCC In CI vs Aichi; t e Cou*t *uled t at t e se1ond pa*ag*ap o- S>112 B1C envisions t%o s1ena*ios9 B1C % en a de1ision is issued $" t e CIR $e-o*e t e lapse o- t e 120-da" pe*iodE and B2C % en no de1ision is ,ade a-te* t e 120da" pe*ios> In $ot instan1es t e ta6pa"e* as 30 da"s %it in % i1 to -ile an appeal %it t e CTA> Re1o*d o- t e 1ase s o% t at C ev*on -iled its ad,in 1lai, -o* *e-und -o* t e 4 =ua*te*s o- 2007 on Ma" 17; 200( %it in t e 2-"ea* p*es1*iptive pe*iod> &*o, t is date; t e CIR as 120 da"s o* until Septe,$e* 14; 200( %it in % i1 to de1ide t e 1lai,> )it in 30 da"s -*o, t e lapse o- su1 pe*iod Bo* -*o, Septe,$e* 17; 200( to 81to$e* 17; 2007C; petitione* s ould ave eleveated its 1lai, to t e CTA pu*suant to Se1tion 112 B1C> 0o%eve*; it dis so onl" on Ap*il 20; 2007 o* 1.7 da"s $e"ond t e 30-da" p*es1*i$ed pe*iod oappeal>

22

In >er and Company vs C!A; t e Sup*e,e Cou*t as eul%s t at % ile t e *ig t to appeal a de1ision o- t e Co,,issione* to t e CTA is ,e*el" a statuto*" *e,ed"; neve*t eless; t e *e=ui*e,ent t at it ,ust $e $*oug t %it in 30 da"s is :u*isdi1tional>

;%RDEN CHE& 0 CIR Ponente: +autista Date Promulgated: June .;2011 To i!: "ACTS Ma* 2004; +o*den *e1eived P*eli,ina*" Assess,ent #oti1e BPA#C -o* alleged de-i1ient in1o,e ta6; %it olding ta6 on 1o,pensation; <)T; &)T; AAT; AAT on *o"alt"; !ST; inte*est and 1o,p*o,ise penalties -o* ta$le "ea*s 2001 and 2002 Ap*il 12; 2004; +o*den -iled in position pape*s *e-uting said de-i1ien1ies Ap*il 23;2004; +o*den *e1eived a &o*,al Lette* o- !e,and dated Ap*il 12; *e=uesting it to pa" t e de-i1ien1" Ma" 2004; +o*den p*otested t e &o*,al Lette* o- de,and> !ue to +IRDs ina1tion; it -iled a Petition -o* Revie% %it CTA &e$ 2007; +o*den *e1eived CIRDs &inal !e1ision on !isputed Assess,ent B&!!AC date #ov 2004 ;orden#s Contentions: +o*den 1lai,s t at it is Ki,,une -*o, t e pa",ent o- ta6es; as %ell as additions t e*eto; and t e appu*tenant 1ivil; 1*i,inal o* ad,inist*ative penaltiesK unde* t e #IRC o- 1227; e61ept %it olding ta6es; pu*suant to Se1tion (BaC o- R>A> #o> 24.0> It 1lai,s t at t e assess,ents -o* in1o,e ta6; AAT; AAT on Ro"alt"; and !ST -o* t e "ea*s 2001 and 2002 ave al*ead" $een 1an1elled $" its avail,ent o- ta6 a,nest"> +o*den 1lai,s t at it paid t e +IR on Ma" 2; 200. t e total a,ount oPl;37.;.24>27 allegedl" *ep*esenting its total de-i1ien1" %it olding ta6 lia$ilit" -o* 2001 and 2002; in1lusive o- inte*est and penalties> It p*esented in eviden1e t e Ce*ti-i1ate o- #o 8utstanding Ta6 Lia$ilit"s 1 B8C# 3TC000000340(C dated Ma*1 1(; 2002 to p*ove t at it as no outstanding inte*nal *evenue ta6 lia$ilit" as o- Ma*1 1(; 2002 CIR#s Contentions: T e assess,ents %e*e ,ade in a11o*dan1e dis1*epan1ies %e*e dis1ove*ed upon investigation ISS$E: %it la%> T e alleged

2/

) et e* o* not +o*den is lia$le to pa" de-i1ien1" inte*est ta6 on $asi1 de-i1ient <)T> DECISI%N: +o*den i- o*de*ed to Pa"9 1> !e-i1ien1" inte*est at t e *ate o- 20? pe* annu, on $asi1 de-i1ient <)T 1o,puted -*o, Ma" 10;200. until pa",ent pu*suant to Se1 #IRC HELD: +ased on t e do1u,enta*" eviden1e su$,itted $" +o*den CTA -inds t e, to $e in o*de*; Assess,ent #oti1e #os> )C-01 -00007(; &)T-01 -00002.; <)T02-000107;and &)T-02-000022 a*e dee,ed 1an1elled and set asideE 0o%eve*, t e sa,e is not t*ue %it t e de-i1ien1" <)T assess,ent -o* ta6a$le "ea* 2001 unde* Assess,ent #oti1e #o> <)T-01 -0001 04 T e 1ontents o- t e Ce*ti-i1ate o- #o 8utstanding Ta6 Lia$ilit"s do not p*ove pa",ent o- de-i1ien1" ta6es su$:e1t o- t is 1ase; in1luding de-i1ien1" <)T -o* 2001 > In -a1t; t e 1ontents t e*eo- did not indi1ate t e t"pe o- ta6 and t e ta6a$le "ea*s 1ove*ed $" said 1e*ti-i1ation> T e $est eviden1e o- pa",ent is t e o--i1ial *e1eipt andFo* deposit slips s o%ing pa",ent to t e a11ount o*espondent

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9INTERNIT> ASS%CIATES INS$RANCE ;R%?ERS C%RP( 0 CIR Ponente9 +autista Promulgated9 June 2; 2011 To i!9 #on-lia$ilit" o- an insu*an1e $*o4e* Bnot insu*an1e agentVC -o* AAT on p*e,iu, pa",ents *e1eived -*o, 1lients and *e,itted to insu*an1e 1o,panies "ACTS: Petitone* )inte*nit/ Co*p> is a do,esti1 1o*po*ation> 8# 81t> 27; 2004; *espondent CIR issued a Lette* #oti1e to )inte*nit/ advising ot t at $ased on t e pa*tial tall" -*o, 1o,pute*i/ed ,at1 ing 1ondu1ted $" t e +IR; t is lia$le -o* de-i1ien1t ta6es due tounde* de1la*ed sales in t e a,ount oP17;(74;22.>22> 8n &e$*ua*" 22; 200(; t e CIR issued anot e* lette* advising )inte*nit/ t at it is lia$le -o* de-i1ien1" in1o,e ta6 and AAT -o* t e "ea* 2003; and *e=uested an in-o*,al 1on-e*en1e> At t e in-o*,al 1on-e*en1e; )inte*nit/ a*gued t at as an insu*an1e $*o4e*; it did not unde*-de1la*e its in1o,e $e1ause t e unde1la*ed sales %e*e due all to t e insu*an1e 1o,panies; not to itsel- as a $*o4e*> PA# %as issued against )inte*nit/ on Ma*1 27; 2007> In t e PA#; it %as -ound lia$le -o* de-i1ien1" ta6es in t e a,ount o- P2>.MWW -o* t e ta6a$le "ea* 2003> A &A# %as t e*ea-te* issued *eite*ating t e -indings in t e PA#> )inte*nit/ -iled its lette*-p*otest; to % i1 *espondent CIR issued an &!!A on August 12; 2002; *eite*ating t e -indings as stated in t e &A#> )inte*nit/ -iled its Petition -o* Revie% %it t e CTA on Septe,$e* 14; 2002 p*a"ing t at t e &!!A $e set aside> ?internit@As contention9 T e alleged unde*-de1la*ed in1o,e o- P17M *ep*esent p*e,iu, pa",ents % i1 t e" *e1eived as $*o4e*-o--*e1o*d odi--e*ent insu*an1e 1o,panies> As su1 ; t e" %e*e not *e=ui*ed to de1la*e as pa*t o- its ta6a$le in1o,e> ISS$E: )8# )inte*nit/; an insu*an1e $*o4e*; is lia$le -o* t e assessed de-i1ien1" in1o,e ta6 and AAT -o* t e "ea* 2003 Bi>e>; )8# an insu*an1e $*o4e* is lia$le -o* AAT on t e p*e,iu, pa",ents it *e1eives -*o, 1lients and *e,its to t e insu*an1e 1o,paniesXC

28

DECISI%N9 #8> Petition g*anted> Se1> 301 o- P! (12 de-ines and Hinsu*an1e $*o4e*I as Han" pe*son % o -o* 1o,pensation; 1o,,ission o* anot e* t ing o- value a1ts o* aids in an" ,anne* in soli1iting; negotiating o* p*o1u*ing t e ,a4ing o- an" insu*an1e 1ont*a1t o* in pla1ing *is4 o* ta4ing out insu*an1e; on $e al- o- an insu*ed ot e* t an i,sel->I In Anscor Insurance (ro)ers v CI and C!A ; t e SC eld t at an insu*an1e $*o4e* is di--e*ent -*o, an insu*an1e A'<#T sin1e t e $*o4e* a1ts as a H,iddle,anI $et%een t e insu*ed and t e insu*an1e 1o,pan" and soli1its insu*an1e unde* no e,plo",ent -*o, an" spe1ial 1o,pan" and pla1es o*de*s o- insu*an1e %it t e 1o,pan" sele1ted $" t e insu*ed; o* in t e a$sen1e osu1 a sele1tion; $" t e $*o4e*> &*o, t e -o*egoing; an insu*an1e $*o4e* does #8T *e1eive an" in1o,e -*o, t e insu*an1e 1o,pan" $ut de*ives its in1o,e ,ainl" -*o, 1o,,issions -o* insu*an1e poli1ies t at it pla1es %it t e insu*an1e 1o,panies upon *e,ittan1e o- p*e,iu,s $" t e 1lients> T is *esolved; o% s ould in1o,e de*ived $" insu*an1e +R8J<RS $e ta6edX Re-e*en1e to RR #o> 2-2.9 HSe1tion 2>77>2> In1o,e Pa",ent Su$:e1t to C*edita$le )it olding Ta6 and Rates P*es1*i$ed t e*eon; - <61ept as e*ein ot e*%ise p*ovided; t e*e s all $e %it eld a 1*edita$le in1o,e ta6 at t e *ates e*ein spe1i-ied -o* ea1 1lass o- pa"ee -*o, t e -ollo%ing ite,s o- in1o,e pa",ents to pe*sons *esiding in t e P ilippines9 666 B'C In1o,e pa",ents to 1e*tain $*o4e*s and agents> G 8n g*oss 1o,,issions o* se*vi1e -ees o- 1usto,s; insu*an1e; sto14; *eal estate; i,,ig*ation and 1o,,e*1ial $*o4e*s and -ees o- agents o- p*o-essional ente*taine*s G Ten pe*1ent B10?C> 0e*e; it is 1lea* t at )inte*nit/ in1o,e 1o,es -*o, 1o,,issions; and not p*e,iu, pa",ents> 0en1e; $asis -o* ta6 s ould $e t e 1o,,issions it *e1eives and not t e p*e,iu, pa",ents it *e1eives and *e,its to t e insu*an1e 1o,pan"> Su1 sales 1onstitute pa*t o- t e ta6a$le in1o,e o- t e insu*an1e 1o,panies; and not )inte*nit/ as a $*o4e*> Conse=uentl"; onl" su1 1o,,issions *e1eived $" )inte*nit/ a*e su$:e1t to AAT sin1e t e $*o4e* is su$:e1t to output ta6 onl" on t e 1o,,ission it *e1eives and not on t e p*e,iu, pa",ents> It is t e insu*an1e 1o,pan" t at is lia$le -o* t e AAT on t e p*e,iu, pa",ents and s ould issue t e AAT *e1eipt % i1 1an $e t e $asis o- AAT input 1*edit>

2:

REP$;LIC CE&ENT v CIR Ponente: Cotang1o- Manalastas Date Promulgated: Aug 2; 2011 To i!: !elin=uen1" inte*est "ACTS: T is de1ision 1ove*s t e ,otions -o* *e1onside*ation o- Repu$li1 and CIR oCTA o*de* -o* Repu$li1 to pa" delin=uen1" inte*est and CIRDs de,and -o* 1o,p*o,ise penalt"> BPlease see o*iginal de1ision a$oveC Re u<li!#s Contention: Repu$li1 1lai,s t at it dul" -iled p*ope* *etu*ns -o* *e,ittan1e o- %it olding AAT on pa",ents -o* se*vi1es *ende*ed to non*esidents; en1e t e 3 "* p*es1*iptive pe*iod applies> CIR as until Jan 27;2003 to assess de-i1ien1" %it olding AAT -o* ta6a$le "* 1222; % i1 is 3 "ea*s -*o, t e date o- -iling t e AAT *etu*n on Jan 27;2000> T e CIRDs assess,ent noti1e -o* t e said de-i1ien1" ta6 dated &e$ 2004; % i1 it *e1eived Ma* 2004; is $e"ond t e 3 "ea* p*es1*iptive pe*iod -o* assess,ent and 1olle1tion o- ta6es Repu$li1 alleged t at pa",ents %e*e ,ade to non-*esidents9 <le6 <nginees; +M0 Claudius <nginees; M* Jadg,ann and J*upp Pol"sius; p*io* to 1222; en1e; said t*ansa1tions s ould not ave $een in1luded in t e de-i1ien1" assess,ent CIR#s Contention: T e investigation 1ondu1ted $" its *evenue o--i1e*s dis1losed t at 1e*tain pa",ents o- se*vi1es to non-*esident -o*eign 1o*po*ations %e*e not su$:e1ted to C*edita$le )it olding on AAT and t at Repu$li1 -ailed to su$,it p*oo-; en1e t e assess,ent %as sustained> Repu$li1Ds -ailu*e to -ile a *etu*n -o* t e ta6es assessed ,e*its san1tion o- t e Co,p*o,ise Penalt" in lieu o- instituting a 1*i,inal a1tion ISS$ES:

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) et e* o* not Repu$li1 is lia$le to t e delin=uen1" inte*est 1 a*ge; su*1 a*ge and 1o,p*o,ise penalt" DECISI%N: Pa*tiall" '*anted> T e *e14oning date -o* t e delin=uen1" inte*est 1 anged to Janua*" 2007> HELD: La14ing an" eviden1e to 1on1lude t at petitione* -iled t e *etu*n and 1o**espondingl" paid t e 1*edita$le %it olding AAT -o*; o* on $e al- o- t e said non-*esident -o*eign 1o*po*ations; CIR as 10 "ea*s -*o, t e dis1ove*" ot e o,ission as p*ovided in Se1 222BaC #IRC; to assess t e petitione*> T e*e-o*e; t is p*esent 1ase as not p*es1*i$ed> Repu$li1 -ailed to suppo*ts its allegations t at pa",ents to t e ,entioned non-*esident 1o*po*ations %e*e ,ade p*io* to 1222> )ell settled is t e *ule t at ta6 assess,ents a*e p*esu,ed to $e 1o**e1t unless t e 1ont*a*" is s o%n and t e $u*den o- p*oo- *ests upon t e ta6pa"e* to ove*1o,e t is p*esu,ption> Repu$li1 -ailed to dis1 a*ge t is $u*den; t us t e assessed de-i1ien1" %it olding AAT s ould $e sustained> &u*t e*; Repu$li1 is lia$le to pa" 27? su*1 a*ge in a11o*dan1e %it Se1 24.BAC #IRC> T e la% is 1lea* t at t e i,position o- su*1 a*ge is ,andato*"> T e alleged good -ait o- t e ta6pa"e* is not su--i1ient :usti-i1ation -o* see4ing e6e,ption -*o, t e pa",ent o- su*1 a*ge> Su*1 a*ge is an ove*1 a*ge o* e6a1tion i,posed $" la% as an addition to t e ,ain ta6 *e=ui*ed to $e paid> It is not *eall" a penalt" as used in 1*i,inal la% $ut a 1ivil ad,inist*ative san1tion p*ovided as a sa-egua*d -o* t e p*ote1tion o- t e State *evenueE it is 1o,pensato*" in natu*e T e i,position o- de-i1ien1" inte*est is also san1tioned unde* Se1 242B+C #IRC and delin=uen1" inte*est unde* Se1 242BCC #IRC> T e la% allo%s t e i,position o- t ese 2 4inds o- inte*ests si,ultaneousl"> CTA *e1onside*ed t e *e14oning date -o* t e pa",ent o- delin=uen1" inte*est9 it s ould $e assessed on t e due date appea*ing in t e noti1e and de,and o- Co,,issione*> As it appea*s; t e &A# stated Jan 31; 2007> As *ega*ds CIRDs 1ontention on t e i,position o- 1o,p*o,ise penalt"; t e sa,e s ould onl" $e applied i- t e ta6pa"e* and CIR $ot 1onsented> In t is 1ase; t e*e is no s o%ing t at $ot pa*ties *ea1 ed a 1o,p*o,ise ag*ee,ent; en1e; su1 penalt" 1annot $e sustained

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$PS INTERNATI%NAL INC( vs CIR Ponente9 +autista Promulgated9 Aug 4; 2011 To i!9 Aalidit" o- assess,ent9 no legal o* -a1tual $ases 1ited in -o*,al lette* o- de,and "ACTS: Petitione* 3PS is a do,esti1 1o*p; %it p*in1ipal add*ess in Cla*4 Spe1ial Tone> It is dul" *egiste*ed as a Cla*4 Spe1ial <1ono,i1 Tone <nte*p*ise and as su1 ; pa"s onl" 7? ta6 on its g*oss p*o-it in lieu o- all lo1al and national ta6es> ) ile it %as *egiste*ed %it t e S<C on Septe,$e* 14; 2001; it sta*ted its ope*ations onl" on Ap*il 4; 4002; and %as issued a Ce*ti-i1ation as a Regional <nte*p*ise on June 14; 2001> As su1 R<; it is -u*t e* entitled to t e e6panded dedu1tions unde* Se1; 2 o- RR 1(-22> 8n Ma" 24; 2004; a Lette* o- Aut o*it" to e6a,ine its inte*nal *evenue ta6es -o* t e pe*iod Jan 1 to !e1 31; 2002; %as issued $" t e CIR> 8n &e$*ua*" 1(; 200(; t e PA# %as issued -inding a lia$ilit" o- P1;777;(3. -o* de-i1ien1" in1o,e ta6E and P3;72.;314 as de-i1ien1" -inal ta6 on -*inge $ene-its; o* a total o- P7>7WW ,illion> 8n Ma*1 3; 200(; 3PS -iled its p*otest against t e PA#> 8n Ma*1 10; it *e1eived t e Lette* o- !e,and; dated &e$*ua*" 23; *eite*ating t e PA# -indings> August 229 3PS *e1eived denial o- its p*otest Bdated August 14C -*o, t e Regional !i*e1to*> Septe,$e* 2.9 3PS -iled an appeal %it t e CIR> Pending appeal; t e +8R R!8 sent 3PS a &inal #oti1e +e-o*e Sei/u*e o*de*ing 3PS to pa" t e assessed de-i1ien1ies> Jul" 27; 20079 3PS *e1eived )a**ant o!ist*aintFLev"> August 23; 20079 3PS -iled Petition -o* Revie%> ISS$E9 )8# assess,ent is void -o* -ailu*e to 1o,pl" %it Se1> 22. *e=ui*e,ent to state t e legal and -a1tual $ases o- t e assess,ent in t e -o*,al lette* o- de,and>

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DECISI%N9 5<S> Assess,ent -ailed to 1o,pl" %it Se1; 22. and is t e*e-o*e void> Petition g*anted; and )a**ant o- !ist*aint andFo* Lev" 1an1elled> HELD9 $reli"inarily. /as $etition for Revie/ filed out of ti"e0 N,. Respondent CIR 1ontends t at a-te* *e1eiving t e denial o- its p*otest; 3PS -iled an MR %it t e CIR and t e*e-o*e; its *e,ed" is to -ile an appeal %it t e CTA *at e* t at t e petition -o* *evie%> In t e p*esent 1ase; it is t e R!Ds de1ision % i1 is $eing appealed $e-o*e t e CIR> T e *egulation i,ple,enting Se1> 22. spe1i-i1all" states t at i- t e ta6pa"e* appeals t e R!Ds de1ision %it t e CIR; t e -o*,e*Ds de1ision does #8T 1onstitute a -inal de1ision appeala$le $e-o*e t e CTA> Petitione* 3PS 1o**e1tl" appealed t e de1ision o- t e CIR; and not t at - t e R! $e-o*e t e 1ou*t and ti,el" -iled its Petition -o* Revie% on August 23; 3007 a-te* *e1eipt o- t e )a**ant o- !ist*aintFLev" on Jul" 27; % i1 a1t 1an $e 1onside*ed a denial o- its p*otest> Re validity of t#e assess"ent. It %as appa*ent t at t e &o*,al Lette* o- !e,and -ailed to state t e legal and -a1tual $ases -o* t e assess,ent> BRep*odu1ing t e do1u,ent ve*$ati,; it onl" stated t e 1o,putations and dis1*epan1ies $ut t e*e *eall" %as no state,ent *e legal $asesYC T e eviden1e t at t e CR t*ied to s o% to p*ove t at e app*ised t e Petitione* o- su1 legal $ases %as a ,e,o*andu, t at %as a1tuall" a ,e*e inte*nal ,e,o*andu, issued to t e +IRDs Regional !i*e1to*; and not to t e petitione* 3PS> )it t e -inding t at t e assess,ent %as not valid; t e ot e* issues *aised %e*e dee,ed ,oot and no longe* disposed o->

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NIPP%N E@PRESS 0 CIR Ponente: +autista Date Promulgated: August 10;2011 To i!: Issuan1e o- Ta6 C*edit Ce*ti-i1ate "ACTS 8n Ap*il 27; 20024; Jul" 27; 20027; 81to$e* 27; 2002(; and Janua*" 27; 2003; petitione* -iled its Mua*te*l" AAT Retu*ns -o* t e -ou* =ua*te*s o- 2002 %it t e +IR; t *oug t e <le1t*oni1 &iling and Pa",ent S"ste, B<&PSC 8n Ap*il 22; 2004; petitione* -iled an ad,inist*ative 1lai, -o* t e issuan1e ota6 1*edit 1e*ti-i1ate BTCCC in t e a,ount o- P24;(44;70(>.(; *ep*esenting t e e61essFunused input ta6es att*i$uta$le to its /e*o-*ated sales +e1ause o- +IRDs ina1tion; #ippon -iled t is p*esent Petition -o* Revie% CIR#s Contentions: T e 1lai, is still unde* investigation ISS$E: ) et e* o* not petitione* is entitled to t e issuan1e o- ta6 1*edit 1e*ti-i1ate in t e a,ount oP p 24;(44;70(>.(; *ep*esenting e61essFunutili/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$E A TA@ CREDIT CERTI"ICATE to petitione* in t e *edu1ed a,ount o- T9% &ILLI%N SI@ H$NDRED "%$RTEEN TH%$SAND T9% H$NDRED NINET3*SI@ PES%S AND A.=/ 22 (P)6B/.6)+B(A.)6 *ep*esenting e61essFunutili/ed input AAT att*i$uta$le to its /e*o-*ated sales -o* ta6a$le "ea* 2002>

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HELD Se1 112 #IRC17; enu,e*ated t e *e=uisites -o* t e issuan1e o- ta6 1*edit 1e*ti-i1ate o* *e-und o- input ta6 due o* paid att*i$uta$le to /e*o-*ated o* e--e1tivel" /e*o-*ated sales> in o*de* to $e entitled to a *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate; petitione* ,ust 1o,pl" %it t e -ollo%ing *e=uisites9 1 > t at t e*e ,ust $e /e*o-*ated o* e--e1tivel" /e*o-*ated salesE 2> t at input ta6es %e*e in1u**ed o* paidE 3> t at su1 input AAT pa",ents a*e di*e1tl" att*i$uta$le to /e*o-*ated sales o* e--e1tivel" /e*o-*ated salesE 4> t at t e input AAT pa",ents %e*e not applied against an" output AAT lia$ilit"E and 7> t at t e 1lai, -o* *e-und %as -iled %it in t e t%o-"ea* p*es1*iptive pe*iod> Rega*ding t e ti,eliness o- -iling t e 1lai,9 T e Sup*e,e Cou*t in Atlas Consolidated 2ining and 9evelopment Corporation vs> Commissioner of Internal Revenue22; eld t at t e *e14oning o- t e t%o-"ea* p*es1*iptive pe*iod is -*o, t e date o-iling o- t e Mua*te*l" AAT Retu*n> In t is 1ase; t e ea*liest =ua*te* 1ove*ed $" t e instant 1lai, is t e -i*st =ua*te* o- 2002 -o* % i1 petitione* -iled its o*iginal Mua*te*l" AAT Retu*n on Ap*il 27; 2002> Counting -*o, t is date; $ot t e ad,inist*ative and t e :udi1ial 1lai,s -iled on Ap*il 22; 2004 and Ap*il 23; 2004; *espe1tivel"; %e*e -iled %it in t e t%o-"ea* pe*iod As to t e 1st *e=uisite -o* t e issuan1e o- TCC; #ipponDs AAT Retu*ns -o* t e -ou* =ua*te*s o- 2002 s o%ed t at it ad t e -ollo%ing ta6a$le; e6e,pt; and /e*o-*ated salesF*e1eipts> 0o%eve*; in its 1lai, -o* ta6 1*edit and Petition -o* Revie%; petitione* de1la*ed a total sales o- P222;033;(7(>.3> It s ould $e noted t at t e*e is a dis1*epan1" $et%een petitione*Ls sales as 1lai,ed and as *epo*ted in its Mua*te*l" AAT Retu*ns in o*de* -o* t e suppl" o- se*vi1es to $e AAT /e*o-*ated unde* Se1tion 1 0.B+C B2C o- t e #IRC o- 1227; as a,ended Ot en Se1tion 1 02B$C B2C o- t e #IRC o1277; as a,endedP; t e -ollo%ing *e=uisites ,ust $e ,et9 1> t e se*vi1es ,ust $e ot e* t an p*o1essing; ,anu-a1tu*ing o* *epa14ing o- goodsE 2> pa",ent -o* su1 se*vi1es ,ust $e in a11epta$le -o*eign 1u**en1" a11ounted -o* in a11o*dan1e %it t e +SP *ules and *egulations; and 3> t e *e1ipient o- su1 se*vi1es is doing $usiness outside t e P ilippines> -inds t at petitione* 1o,plied %it t e -i*st *e=uisite as t e -*eig t -o*%a*ding se*vi1es it *ende*s a*e not in t e sa,e 1atego*" as Kp*o1essing; ,anu-a1tu*ing o* *epa14ing o- goodsK> Li4e%ise; t e se1ond *e=uisite %as ,et> &o* -*eig t -o*%a*ding se*vi1es *ende*ed in t e "ea* 2002; petitione* *e1eived -o*eign 1u**en1" pa",ents; % i1 %e*e a11ounted -o* in a11o*dan1e
12

=SEC. 112. Refunds or Tax Credits of Input Tax.( ! Zero-rated or Effectively Zero-rated Sales. - n, V Tre*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, a ly for the issuance of a tax credit certificate or refund of creditable in ut tax due or aid attributable to such sales, !!!!!

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%it t e +SP *ules and *egulations; as eviden1ed $" $illing state,ents; sales invoi1es; in%a*d *e,ittan1es; and $an4 1*edit advi1es> 0o%eve*; petitione* -ailed to 1o,pl" %it t e e=uall" signi-i1ant t i*d *e=uisite> ) ile t e S<C Ce*ti-i1ates o- #on-Regist*ation31 su$,itted $" petitione* s o% t at t e alleged non-*esident -o*eign 1lients o- petitione* a*e not *egiste*ed 1o*po*ations in t e P ilippines; t e sa,e do not p*ove t at su1 1o*po*ations a*e non-*esidents Kdoing $usiness outside t e P ilippines>K T us; -o* -ailu*e to p*ove t at t e -*eig t -o*%a*ding se*vi1es it *ende*ed -o* t e "ea* 2002 %e*e ,ade to non-*esident -o*eign 1lients doing $usiness outside t e P ilippines; petitione*Ls pu*po*ted sales t e*e-*o, in t e a,ount o- P7.3;.31;(24>7. 1annot =uali-" -o* AAT /e*o-*ating unde* Se1tion 1 0.B+C B2C o- t e #IRC o- 1227; as a,ended> Conse=uentl"; t e input AAT allegedl" att*i$uta$le to said sales 1annot $e *e-unded> Inas,u1 as onl" a po*tion o- petitione*Ls /e*o-*ated sales is p*ope*l" su$stantiated; onl" t e po*tion o- t e input AAT 1lai,ed att*i$uta$le to t e su$stantiated /e*o-*ated sales %ill $e 1onside*ed -o* *e-und> #ippon as su--i1ientl" p*oven t at it is entitled to t e issuan1e o- ta6 1*edit 1e*ti-i1ate 1o**esponding to its unutili/ed input AAT -o* ta6a$le "ea* 2002 in t e *edu1ed a,ount o- P2;(14;22(>.4

PILIPINAS SHELL PETR%LE$& C%RP( v C%&&( &%RALES Promulgated9 Aug 2(; 2011 Ponente9 Cotang1o-Manalastas To i!: Indi*e1t 1onte,pt "ACTS9 T e su$:e1t petition e*ein is a Petition -o* Conte,pt -iled $" petitione* S ell; a do,esti1 1o*p; against *espondent +8CDs Co,,issione* Mo*ales ; and Colle1to* Tan and !o,ingo> S ell alleged t at t e +8C o--i1ials %e*e guilt" o- indi*e1t 1onte,pt a-te* t e said 1usto,s o--i1ials allegedl" eld a p*ess 1on-e*en1e; in 1ont*avention ot e CTA Resolution dated Ma*1 12; 2010 % i1 advised t e pa*ties to CTA Case #o> .004; also $et%een t e Pa*ties e*ein; to H*e-*ain -*o, dis1ussing t e ,e*its o- t e 1ase in t e ,edia as it ,a" $e 1onside*ed 1onte,ptuous $" t e Cou*t>I S ell alleged; t at not onl" dis t e *espondents old a p*ess 1on-e*en1e in dis*ega*d o- t e 1ou*tDs o*de*s; $ut t e*ein a11used t e P*esiding Judge i- i,p*op*iet" and engaged in un%a**anted atta14s against S ell> ISS$E9 )8# t e *espondent +8C o--i1ials a*e lia$le -o* indi*e1t 1onte,pt unde* Se1tions 3B$ and BdC o- Rule 71; RoC>

//

DECISI%N9 #8> Petition dis,issed> B+ot Pa*ties %e*e o%eve* *e,inded to $e ,o*e 1autious in dealing %it t e ,edia; so t at t e CTA ,a" $ette* de1ide t e a1tual 1aseC> HELD: To $e 1onside*ed 1onte,ptuous; an a1t ,ust $e 1lea*l" p*o i$ited $" t e o*de* o- t e 1ou*t o- t*i$unal> A pe*son 1annot; -o* diso$edien1e; $e punis ed -o* 1onte,pt unless t e a1t % i1 is -o*$idden o* *e=ui*ed to $e done is lea*l" and e6a1tl" de-ined so t e*e 1an $e no *easona$le dou$t as to % at spe1i-i1 a1t o* t ing is -o*$idden o* *e=ui*ed> 8n t e ot e* and; Se1> 3BdC; Rule 71 o- RoC states9 HAn" i,p*ope* 1ondu1t tending; di*e1tl" o* indi*e1tl"; to i,pede; o$st*u1t; o* deg*ade t e ad,inist*ation o- :usti1e> In People v> 'odo"; t e SC eld t at said 1ondu1t des1*i$ed in Rule 71 Se1> 3 BdC 1onstitutes 1*i,inal 1onte,pt 1onside*ing t e natu*e; pu*pose and 1 a*a1te* o- t e p*o1eedingY and t at; intent is a ne1essa*" ele,ent in 1*i,inal 1onte,pt and t at no one 1an $e punis ed unless eviden1e is 1lea* t at t e*e is intent to 1o,,it itY Conte,pt is not p*esu,ed; and t e $u*den is on t e p*ose1ution to p*ove t e 1 a*ges $e"ond *easona$le dou$t> In t is 1ase; t e Cou*t -ound t at given t e -a1ts; t e*e is no eviden1e to s o%; $e"ond dou$t; t at t e *espondents a*e lia$le -o* indi*e1t 1onte,pt> It -ound t at9 t e*e %as dou$t in t e ,ind o- t e *espondents as to t e *eal i,po*t o- t e 8*de* advising t e pa*ties to *e-*ain -*o, dis1ussing t e ,e*its o- t e 1ase %as a$solute o* pe*,issiveE petitione*s -ailed to s o% spe1i-i1all" t e di*e1t pa*ti1ipation o- t e *espondents in t e a1ts alleged to $e 1onte,ptuousE t e*e %as no p*oo- t at t e utte*an1es du*ing t e p*ess1on %e*e intended to ,align o* i,pai* upon t e dignit" o- t e Cou*t>

S$&ISETS$ v CIR Ponente: Date Promulgated: Sep (; 2011 To i!: Clai, -o* *e-und o* issuan1e o- TCC "ACTS In 200(; Su,isetsu ente*ed into $usiness t*ansa1tions; a,ong % i1 is t e *endition o- ele1t*i1al and ,e1 ani1al se*vi1es to 1lients *egiste*ed %it t e P ilippine <1ono,i1 Tone Aut o*it" BP<TAC; as %ell as to non-*esident -o*eign entities> It allegedl" in1u**ed input AAT % i1 a*e att*i$uted and allo1ated to e--e1tivel" /e*o-*ated sales in t e a,ount o- P12;(23;370>71 and P14;.12;22(>.7 -o* t e 3*d and 4t =ua*te*s o- 200(; *espe1tivel"> Su,isetsu -iled %it t e +IR its 8*iginal Mua*te*l" AAT Retu*ns -o* t e t i*d and -ou*t =ua*te*s o- 200(> 8n Jul" 27; 2007; petitione* -iled its ad,inist*ative 1lai, -o* *e-und ounutili/ed input AAT -o* t e t i*d and -ou*t =ua*te*s o- ta6a$le "ea* 200(; toget e* %it t e suppo*ting do1u,ents>

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+e1ause o- CIRDs ina1tion; Su,isetsu -iled a Petition -o* Revie% Sumisetsu#s Contention: It 1lai,s to $e entitled to a *e-und o* t e issuan1e o- a TCC -o* its e61ess and unutili/ed input AAT -o* t e t i*d and -ou*t =ua*te*s o- ta6a$le "ea* 200( in t e agg*egate a,ount o- P27;713;3(7>7(> CIR#s Contention: T e 1lai, is still unde* investigation> Su,isetsu -ailed to de,onst*ate t at t e alleged ta6 soug t -o* *e-und o* ta6 1*edit as $een e**oneousl" o* illegall" 1olle1ted in violation o- t e ta6 la%s *elied upon $" t e petitione*> Sales o- goods; p*ope*ties o* se*vi1es to P<TA *egiste*ed ente*p*ises does not =uali-" as /e*o-*ated sale Ta6es paid and 1olle1ted a*e p*esu,ed to ave $een ,ade in a11o*dan1e %it la% and *egulationsE en1e; not *e-unda$le> ISS$E % et e* o* not petitione* is entitled to a *e-und o* t e issuan1e o- a TCC -o* its e61ess and unutili/ed input AAT -o* t e t i*d and -ou*t =ua*te*s ota6a$le "ea* 200( in t e agg*egate a,ount o- P27;713;3(7>7(> DECISI%N: !enied HELD: As to t e ti,eliness o- t e 1lai,9 *e1o*ds s o% t at on Jul" 27; 2007; Su,isetsu -iled its ad,inist*ative 1lai, -o* *e-und -o* t e t i*d and -ou* =ua*te*s o- 200(; % i1 is %it in t e t%o B2C-"ea* p*es1*iptive pe*iod> &*o, Jul" 27; 2007; % i1 is also t e date petitione* su$,itted suppo*ting do1u,ents; toget e* %it t e a-o*esaid appli1ation -o* *e-und; t e Co,,issione* o- Inte*nal Revenue as one und*ed t%ent" B120C da"s o* until #ove,$e* 22; 2007 %it in % i1 to de1ide t e ad,inist*ative 1lai, -o* *e-und> )it in t i*t" B30C da"s -*o, t e lapse o- t e 120-da" pe*iod o* -*o, #ove,$e* 23; 2007 to !e1e,$e* 22; 2007; petitione* s ould ave elevated its 1lai, -o* *e-und to t is Cou*t; pu*suant to &ection ''% /C0 of the "I C of '447, as amended, Re1o*ds s o%; o%eve*; t at Su,isetsu -iled t e p*esent Petition -o* Revie%; on 81to$e* 22; 200. onl"; % i1 is 304 da"s %a" $e"ond t e p*es1*i$ed 30da" pe*iod to appeal to t is Cou*t> T us; t e Cou*t as no alte*native; $ut to dis,iss t e instant Petition -o* *evie% -o* aving $een -iled 304 da"s %a" $e"ond t e 3 0-da" p*es1*i$ed pe*iodE t us; t is Cou*t as not a1=ui*ed :u*isdi1tion ove* t e sa,e>

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5ARDINE LL%3D v CIR Ponente: Cotang1o-Manalastas Date Promulgated: Sept 23; 2011 To i!: Clai, -o* *e-und o* issuan1e o- TCC "ACTS: 8n Ap*il 1(; 2007; Ja*dine -iled its Annual In1o,e Ta6 Retu*n -o* ta6a$le "ea* 200(2 ; $ut su$se=uentl" -iled an a,ended Annual In1o,e Ta6 Retu*n3 on Ap*il 2(; 2007; s o%ing a Ta6 Pa"a$le Bove*pa",entC o- P p 70;321;123>(.> 8n Ap*il 3; 2002; Ja*dine -iled %it t e La*ge Ta6pa"e*s Audit and Investigation !ivision o- t e +u*eau o- Inte*nal Revenue a 1lai, -o* *e-und oits pu*po*ted unutili/ed 1*edita$le ta6 %it eld -o* t e "ea* 200( in t e a,ount o- P.;021 ;037>00>4

+e1ause o- CIRDs ina1tion; Ja*dine -iled %it Revie% on Ap*il 17; 2002>

CTA t e instant Petition -o*

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5ardine#s Contentions: Ja*dine 1ontends t at it %as in a net loss position -o* ta6a$le "ea* 200(E t us; it -ailed to -ull" utili/e t e p*io* "ea*Ls e61ess 1*edits o- P43;72(;770>00 and t e 1*edita$le %it olding ta6 -o* 200( in t e a,ount o-P.;021 ;037>00> It ,aintains t at it is entitled to $e *e-unded o* issued a ta6 1*edit 1e*ti-i1ate -o* its unutili/ed 1*edita$le %it olding ta6 -o* t e "ea* 200( CIR#s Contentions: T e 1lai, is unde* investigation> Ja*dine ,ust s o% t at it as -ull" 1o,plied %it t e *e=uisites to sustain a 1lai, -o* *e-und o* ta6 1*edit o- unutili/ed 1*edita$le ta6 1*edits> T ese *e=uisites a*e as -ollo%s 9 a>C T at t e 1lai, -o* *e-und %as -iled%it in t e t%o-"ea* pe*iodE $>C T at t e -a1t o- %it olding is esta$lis ed $" a 1op" o- a state,ent dul" issued $" t e pa"o* B%it olding agentC to t e pa"ee s o%ing t e a,ount paid and t e a,ount o- ta6 %it eld t e*e-*o,E and 1>C T at t e in1o,e upon % i1 t e ta6es %e*e %it eld in t e *etu*n o- t e *e1ipient> ISS$E ) et e* o* not Ja*dine is entitled to a *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate in t e a,ount o- P.;021 ;03 7 >00; allegedl" *ep*esenting its unutili/ed 1*edita$le ta6 %it eld -o* ta6a$le "ea* 200(> DECISI%N Petition denied> Ruled in -avo* o- CIR HELD i- a 1o*po*ate ta6pa"e* as e61ess ta6 1*edits o* ove*paid in1o,e ta6 in a given ta6a$le "ea*; t e sa,e ,a" eit e* $e *e-unded in t e -o*, o- 1as o* ta6 1*edit 1e*ti-i1ate; o* 1a**ied ove*Fapplied to t e su11eeding ta6a$le "ea*s until -ull" utili/ed> T e t%o options a*e in t e alte*native and t e 1 oi1e o- one p*e1ludes t e ot e*> T is is so $e1ause o- t e i**evo1a$ilit" *ule e,$odied in t e last senten1e o- Se1tion 7( o- t e #IRC o- 1227; as a,ended; % e*e t e p *ase Ksu1 option s all $e 1onside*ed i**evo1a$le -o* t at ta6a$le pe*iodK ,eans t at t e option to 1a**" ove* t e e61ess ta6 1*edits o- a pa*ti1ula* ta6a$le "ea* 1an no longe* $e *evo4ed> In t e p*esent 1ase; Ja*dine opted to $e *e-unded $" ,a*4ing t e $o6 KTo $e *e-undedK in its o*iginal and a,ended Annual In1o,e Ta6 Retu*ns> Re1o*ds s o% t at petitione* -iled its o*iginal Annual In1o,e Ta6 Retu*n21 on Ap*il 1(; 2007> T is ,eans t at petitione* ad until Ap*il 17; 2002 %it in % i1 to -ile a 1lai, -o* *e-und -o* ta6a$le "ea* 200(; $ot in t e ad,inist*ative and :udi1ial levels> Ja*dineDs ad,inist*ative and :udi1ial 1lai,s -all %it in t e p*es1*iptive pe*iod>

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Re1o*ds *eveal t at Ja*dine -ailed to p*ove t at it did not 1a**" ove* andFo* appl" t e 1lai,ed e61ess 1*edita$le %it olding ta6es to t e su11eeding =ua*te*s o- 2007; and t at t e in1o,e; *elated to t e e61ess 1*edita$le %it olding ta6es; %as *epo*ted in petitione*Ls *etu*n> Ja*dine s ould ave p*esented its Mua*te*l" In1o,e Ta6 Retu*ns -o* t e -i*st; se1ond; and t i*d =ua*te*s o- 2007 in o*de* -o* t e Cou*t to as1e*tain t at petitione* did not 1a**" ove* t e 200( e61ess 1*edita$le %it olding ta6es to t e su$se=uent ta6a$le =ua*te*Fs> Li4e%ise; Ja*dine -ailed to esta$lis t e e6isten1e o- its p*io* "ea*Ls e61ess 1*edits in t e a,ount o- P43;72(;770>00; -*o, % i1 t e a,ount o- Mini,u, Co*po*ate In1o,e Ta6 BMCITC due -o* 200( %as applied o* 1*edited> It is 1*u1ial -o* Ja*dine to s o% t at indeed it ad enoug p*io* "ea*Ls e61ess 1*edits to 1ove* its MCIT lia$ilit"E i- not; t e said MCIT lia$ilit" s all $e dedu1ted -*o, petitione*Ls 200( 1*edita$le %it olding ta6es> Petitione* s ould ave su$,itted t e Ce*ti-i1ates o- C*edita$le Ta6es )it eld at Sou*1e and Annual In1o,e Ta6 Retu*ns -o* p*io* 5ea*s Ja*dine s ould ave su$,itted do1u,ents su1 as; $ut not li,ited to; lease 1ont*a1ts; $*ea4do%n o- t e *ental e6pense pe* in1o,e ta6 *etu*n; $oo4s oa11ounts su1 as gene*al :ou*nal; detailed gene*al ledge*; sales :ou*nal; sales invoi1esF$illing state,ents; o--i1ial *e1eipts; p*io* "ea*Ls in1o,e ta6 *etu*n o* an" ot e* do1u,ent % e*e$" t e Cou*t 1an ve*i-" t at it p*ope*l" *epo*ted t e in1o,e *elated to t e 1lai,ed C)T eit e* in t e 1u**ent o* p*io* "ea*> Ja*dineLs non1o,plian1e %it t e t i*d *e=uisite is -atal to its 1lai,> Clai,ant as t e $u*den o- p*oo- to esta$lis t e -a1tual $asis o- is o* e* 1lai, -o* ta6 1*edit o* *e-und> Ta6 *e-unds a*e in t e natu*e o- ta6 e6e,ptions> As su1 ; t e" a*e *ega*ded as in de*ogation o- sove*eign aut o*it" and to $e 1onst*ued strictissimi *uris against t e pe*son o* entit" 1lai,ing t e *e-und>

LISP*II L%CAT%RS# ASS%CIATI%N INC( vs CIR Ponente9 Cotang1o-Manalastas Promulgated9 Sep 22; 2011 To i!9 T%o-"ea* p*es1*iptive pe*iod -o* 1lai,s -o* *e-und unde* Se1tions 204 B1C and 202; in t e 1ase o- e**oneousl" %it eld 1*edita$le %it olding ta6> "ACTS9 Petitione* Lisp-II is a non-sto14; non-p*o-it asso1iation o*gani/ed unde* P ilippine la%s; 1*eated to Hadvan1e and p*o,ote t e 1o,,e*1ial; e1ono,i1 ; edu1ational and so1ial inte*ests and %ell-$eing o- t e ,e,$e*s o-

91

LISP-II Indust*ial Pa*4 BHS1ien1e Pa*4IC in OCala,$aP; and t e gene*al %el-a*e o- t e 1o,,unit"E to ta4e pa*t in deli$e*ations; 1onside*ations; and de1ision; gove*n,ent o* ot e*%ise; a--e1ting t e e1ono,i1 li-e o- t e ,e,$e*s o- t e 1o,,unit" and aving *elations; di*e1t o* indi*e1t; to t*ade; 1o,,e*1e and indust*">I 8n Ap*il 13; 2007; Lisp -iled its Annual ITR -o* 200(; *e-le1ting no in1o,e ta6 lia$ilit" allegedl" $e1ause its in1o,e is e6e,pt -*o, ta6> Late* on; a-te* an inte*nal audit 1i*1a 200.-ea*l" 2002; it lea*ned t at t e*e %e*e +IR &o*,s 2307 t at %e*e not *e-le1ted in t e 200( ITR; and t at one o- its ,e,$e*lo1ato*s e**oneousl" %it eld ta6es -*o, its *evenues e6e,pt -*o, in1o,e ta6> 8n Ma*1 4; 2002; Lisp -iled an ad,in 1lai, -o* *e-und o- t e e**oneousl" %it eld ta6 -o* 200( a,ounting to P21.;427; 1iting as legal $ases Se1s> 7(; 204; and 222 o- t e Ta6 Code and Se1> 2>7.>3B+C o- RR2-2.> ISS$E: )8# Lisp is entitled to t e *e-und Bi>e> )8# it is e6e,pt -*o, in1o,e ta6C> DECISI%N: #8; due to p*es1*iption> Petition dis,issed> HELD: A 1a*e-ul stud" o- Se1tion 7(1( Bused as $asis $" LispC *eveals t at it is appli1a$le onl" to a 1o*po*ation lia$le to ta6 unde* Se1> 27; and in 1ase it is entitled to a ta6 1*edit o* *e-und; t e e61ess a,ount is s o%n on t e -inal ad:ust,ent *etu*n> 0e*e; Lisp 1lai,s e6e,ption unde* Se1tion 30 and t at all its in1o,e is e6e,pt> It also does not s o% an" e61ess a,ount on its 200( ITR as in -a1t; it de1la*ed no in1o,e ta6 lia$ilit" -o* t at "ea* and t e allegedl" e**oneousl" %it eld 1*edita$le ta6 %as not s o%n t e*ein> T e*e-o*e; Se1tion 7( is not appli1a$le> 0o%eve*; t e allegedl" e**oneousl" %it eld 1*edita$le ta6 ,a" instead $e *e-unded unde* Se1tions 204 B1C and 222; % i1 ave $een settled in t is :u*isdi1tion to gove*n all 4inds o- *e-und o- inte*nal *evenue ta6es> Se1> 204 B1C applies to ad,inist*ative 1lai,s -iled %it t e CIR; and 222 *e-e*s to :udi1ial a1tions -o* *e1ove*" o- ta6 e**oneousl" 1olle1ted; -iled %it t e CTA> 0o%eve*; $ot a1tions ,ust $e -iled %it in t e t%o-"ea* pe*iod -*o, t e date o- pa",ent o- t e ta6> 0e*e; sin1e t e 1lai, pe*tains to 1*edita$le in1o,e ta6 e**oneousl" %it eld; Se1tions 204 B1C and 222 ,ust $e *ead toget e* %it Se1> 2>7. o- RR 2-2. as
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SEC. "#. Final Adjustment Return. - >ver, corporation lia#le to tax under Section 29 s(all file a final ad$ust+ent return coverin* t(e total taxa#le inco+e for t(e precedin* calendar or fiscal ,ear. ?f t(e su+ of t(e @uarterl, tax pa,+ents +ade durin* t(e said taxa#le ,ear is not e@ual to t(e total tax due on t(e entire taxa#le inco+e of t(at ,ear< t(e corporation s(all eit(er. ( ! Pa, t(e #alance of tax still dueA or ("! 7arr,-over t(e excess creditA or (7! "e credited or refunded )it( t(e excess a+ount paid< as t(e case +a, #e. ?n case t(e corporation is entitled to a tax credit or refund of t(e excess esti+ated @uarterl, inco+e taxes paid< t(e excess a+ount s(o)n on its final ad$ust+ent return +a, #e carried over and credited a*ainst t(e esti+ated @uarterl, inco+e tax lia#ilities for t(e taxa#le @uarters of t(e succeedin* taxa#le ,ears. xxx

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a,ended $" Se1> 7 o- RR 17-2003> +ased on t ese *egulations; t e *e14oning o- t e t%o-"ea* p*es1*iptive pe*iod %ould $e t e date o- ,ont l" *e,ittan1e o- t e 1lai,ed 1*edita$le %it olding ta6es -o* Janua*" to !e1e,$e* 200(> T e last ,ont 1ove*ed $" t e su$:e1t 1lai, is !e1e,$e* 200(; % i1 unde* RR 2-2.; ,ust $e paid on o* $e-o*e Janua*" 17; 2007 o* not late* t an Janua*" 20; 2007 in 1ase o- avail,ent o- <&PS> T e*e-o*e; 1ounting t e t%o-"ea* pe*iod -*o, t ese dates; Lisp ad onl" until Janua*" 17; 2002; o* until Janua*" 20; 2002 at t e ,ost; to -ile its 1lai, -o* *e-und -o*e !e1e,$e* 200( $ot %it t e CIR and t e CTA> Sin1e t e 1lai, %as -iled onl" on Ma*1 4; 2002 and t e su$se=uent appeal -iled %it t e CTA on Ap*il 13; 2002; LispsDs 1lai,s -o* t e ,ont s o- Janua*"-!e1e,$e* 200( ad al*ead" p*es1*i$ed>

PHILIPPINE NATI%NAL ;AN? (PN;) v CIR Ponente: +autista Date PromulgatedC Sep 30;2011 To i!: Clai, -o* *e-und o* issuan1e o- TCC

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"ACTS 8n Ap*il 17; 200(;3 P#+ ele1t*oni1all" -iled; its Annual In1o,e Ta6 Retu*n -o* ta6a$le "ea* 2007 t *oug t e +IRL s <le1t*oni1 &iling and Pa",ent S"ste,> 8n Ap*il 1.; 200(; P#+ ,anuall" -iled its Annual In1o,e Ta6 Retu*n; toget e* %it t e *e=ui*ed atta1 ,ents t e*eto; %it t e +IRL s La*ge Ta6pa"e*s !o1u,ents P*o1essing and Mualit" Assu*an1e !ivision T *oug lette*; P#+ -iled its 1lai, -o* *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate o- its e61ess pa",ent o- in1o,e ta6 lia$ilit" in t e a,ount oP74;72.;430>47 on dated &e$*ua*" 12; 2007; June 22; 2007; and Ma*1 10; 200. !ue to CIRLs ina1tion; petitione* -iled t e p*esent Petition -o* Revie% on Ap*il; 200.> PN;#s Contention: P#+ 1lai,s to $e entitled to t e 1lai, -o* *e-und o* issuan1e o- TCC -o* ta6a$le "ea* 2007 in t e a,ount o- P p 74;72.;430>47 CIR#s Contention Alleged 1lai, -o* *e-und is su$:e1t to ad,inist*ative *outina*" investigationF e6a,ination $" t e +u*eau o- Inte*nal Revenue B+IRC T e a,ount o- &74;72.;430>47 $eing 1lai,ed $" petitione* as alleged 1*edita$le %it olding ta6es -o* ta6a$le "ea* 2007 is not p*ope*l" do1u,ented> In an a1tion -o* *e-undF 1*edit; t e $u*den o- p*oo- is on t e ta6pa"e* to esta$lis its *ig t to *e-und; and -ailu*e to sustain t e $u*den is -atal to t e 1lai, -o* *e-undF 1*edit ISS$E ) et e* o* not P#+ is entitled to t e 1lai, -o* *e-und o* issuan1e o- TCC -o* ta6a$le "ea* 2007 in t e a,ount o- P p 74;72.;430>47 DECISI%N #o> P#+ is not entitled> Petition denied> HELD A 1o*po*ation entitled to a ta6 1*edit o* *e-und o- e61ess esti,ated =ua*te*l" in1o,e ta6es paid as t%o B2C options; vi@B B1C to 1a**" ove* t e e61ess 1*editE o* B2C to appl" -o* t e issuan1e o- a ta6 1*edit 1e*ti-i1ate o* to 1lai, a 1as *e-und> And on1e t e option to 1a**" ove* as $een ,ade; su1 s all $e i**evo1a$le -o* t at ta6a$le pe*iod and no appli1ation -o* 1as *e-und o* issuan1e o- ta6 1*edit 1e*ti-i1ate s all $e allo%ed> T e i**evo1a$ilit" *ule % en ta4en %it t e p *ase K-o* t at ta6a$le pe*iodK *e-e*s to t at ta6a$le pe*iod % i1 t e ta6pa"e* ,ade t e 1 oi1e o- 1a**" ove* and not to t e ne6t ta6a$le "ea* % en t e said e61ess o* unutili/ed ta6 1*edits $e 1a**ied ove*> A 1o*po*ation ,ust signi-" in its annual 1o*po*ate ad:ust,ent *etu*n; $" ,a*4ing t e option $o6 p*ovided in t e +IR -o*,; its intention % et e* to *e=uest -o* a *e-und o* 1lai, -o* an auto,ati1 ta6 1*edit -o* t e su11eeding ta6a$le "ea*> To ease t e ad,inist*ation o- ta6 1olle1tion; t ese *e,edies a*e in t e alte*native; and t e 1 oi1e o- one p*e1ludes t e ot e*>

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T e p*esentation o- t e su11eeding Annual In1o,e Ta6 Retu*n is not su--i1ient to esta$lis t at petitione* did not appl" its 1lai,ed unutili/ed 1*edita$le %it olding ta6es -o* t e -i*st t *ee =ua*te*s o- 200(> Sin1e ta6 *e-unds a*e in t e natu*e o- ta6 e6e,ptions; and t e sa,e a*e *ega*ded as in de*ogation o- sove*eign aut o*it"E en1e; t e sa,e s all $e 1onst*ued strictissimi *uris against t e pe*son 1lai,ing su1 e6e,ption> T e*e-o*e; t e ta6pa"e* as t e $u*den o- p*oving t at it is entitled to its 1lai,>

$NI%IL C%RP( vs CIR Ponente9 Cotang1o-Manalastas Date Promulgated9 81t 4; 2011 To i!9 Mandato*" natu*e o- issuan1e o- t e PA# unde* Se1tion 22. "ACTS:

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Petitione* 3ni8il is a do,esti1 1o*po*ation> 8n Janua*" 2(; 2002; it *e1eived a &o*,al Lette* o- !e,and and &A# -inding it lia$le -o* de-i1ien1" %it olding ta6 on 1o,pensation and de-i1ien1" e6panded %it olding ta6 -o* t e "ea* ending !e1e,$e* 31; 2007> 3ni8il -iled its p*otest on &e$*ua*" 27; 2002 and su$,itted its suppo*ting do1s on Ap*il 24; 2002> It t e*ea-te* -iled t e instant Petition -o* Revie% on #ove,$e* 20; 2002 a-te* t e CIR -ailed to a1t on its p*otest and t e lapse ot e 1.0-da" pe*iod> 8ut o- t e seve*al issues identi-ied $" t e Pa*ties Bsu1 as p*es1*iption; validit" o- t e &A#; et1C; t is 1ase %as *esolved on t e issue o- t e *e=ui*e,ent o- t e issuan1e o- a PA#> ISS$E9 )8# t e -ailu*e $" t e CIR to issue a PA# voids t e assess,ents ,ade> DECISI%N9 5<S> Assess,ents voidE Cou*t -inds -o* petitione* 3ni8il> HELD9 Se1tion 22. o- t e #IRC p*ovides9 - ) en t e Co,,issione* o* is dul" aut o*i/ed *ep*esentative -inds t at p*ope* ta6es s ould $e assessed; e s all -i*st noti-" t e ta6pa"e* o- is -indingsY Band t en enu,e*ates % en su1 PA# s all not $e *e=ui*edC - T at ta6pa"e*s s all $e in-o*,ed in %*iting o- t e la% and t e -a1ts on % i1 t e assess,ent is ,adeE ot e*%ise t e assess,ent s all $e void> Co*olla*" to S> 22. is Se1tion 3 o- RR 12-22 % i1 *e=ui*e,ent in t e issuan1e o- assess,ents> de-ines t e due p*o1ess

Appa*ent -*o, t ese p*ovisions a*e t e *e=ui*e,ents t at ,ust $e o$se*ved to 1on-o*, %it t e *e=ui*e,ents o* p*o1edu*al p*o1ess vital to t e validit" ot e assess,ent9 1C Sending o- a noti1e o- in-o*,al 1on-e*en1e to t e TP a11o,panied $" a Su,,a*" o- &indings o* Repo*t o- InvestigationE 2C I- t e CIR o* is *ep; a-te* t e in-o*,al 1on-e*en1e; -inds t at ta6es s ould $e assessed; t e TP %ill $e noti-ied in %*iting>in t e -o*, o- a PA#> T e PA# %ill state t e $asis o- t e assess,entE 3C TP given 17 da"s -*o, *e1eipt o- PA# to ,a4e a *epl">E -ailing so; a -o*,al lette* o- de,and assess,ent noti1e s all $e issued 1alling -o* pa",ent o- t e TPDs ta6 lia$ilit"E 4C I- TP disag*ees o* %is es to p*otest; it ,ust send p*otest to +IR stating *easons t e*e-o* and su$,itting su1 p*oo- as ne1essa*"> T e assess,ent $e1o,es a disputed assess,ent on % i1 t e CIR ,a" *ende* a de1ision> T e issuan1e o- a PA# is indispensi$le *e=ui*e,ent Bunless -alling unde* t e e6e,ptions p*ovided in Se1tion 22.C> Citing t e SC in CIR v Met*o Sta*; HY sending o- Pan to t e ta6pa"e* to in-o*, i, o- t e assess,ent ,ade is $ut pa*t o- t e die p*o1ess *e=ui*e,ent in t e issuan1e o- a de-i1ien1" ta6 assess,entY t e %o*d Hs allI in su$se1tion 3>1>2 des1*i$es t e ,andato*" natu*e o- t e se*vi1e o- t e PA#>

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In t is 1ase; 3ni8il denies *e1eiving t e PA#> T e*e-o*e; it is in1u,$ent on *espondent CIR to p*ove t at *e1eipt $" 3ni8il o- t e PA#> T is it -ailed to do> BIt onl" o--e*ed in eviden1e a d*a-t Pan dated #ove,$e* 27; 200. $ut -ailed to p*ove *e1eipt $" petitione* t e*eo- eit e* t *oug pe*sonal se*vi1e o* ,ail>C &ailu*e to 1o,pl" %it assess,ents> t e PA# *e=ui*e,ent @ denial o- due p*o1ess @ void

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