Title
Bases Conversion and Development Authority vs. Commissioner of Internal Revenue
Case
G.R. No. 205925
Decision Date
Jun 20, 2018
The Supreme Court ruled in favor of the Bases Conversion and Development Authority (BCDA), stating that BCDA is exempt from the payment of docket fees, and remanded the case to the Court of Tax Appeals for further proceedings regarding BCDA's claim for refund of Creditable Withholding Tax (CWT).
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Case Digest (G.R. No. 205925)

Facts:

  • The Bases Conversion and Development Authority (BCDA) filed a petition for review with the Court of Tax Appeals (CTA) on October 8, 2010, seeking a refund of Creditable Withholding Tax (CWT) amounting to Php122,079,442.53.
  • The CWT in question was paid under protest from March 19, 2008, to October 8, 2008, related to the sale of units in the Serendra Project, a joint venture with Ayala Land, Inc.
  • BCDA requested an exemption from paying the filing fees amounting to Php1,209,457.90.
  • On October 20, 2010, the CTA First Division denied this request and ordered BCDA to pay the filing fees within five days.
  • BCDA's motion for reconsideration was denied on February 8, 2011, leading to the dismissal of the petition on March 28, 2011, due to non-payment of fees.
  • Subsequent attempts by BCDA to file a motion for reconsideration and a petition for review with the CTA En Banc were also denied.
  • The CTA En Banc upheld the First Division’s decision, stating that non-payment of docket fees meant the court did not acquire jurisdiction over the case.
  • BCDA then filed a petition for review on certiorari under Rule 45 of the Rules of Court with the Supreme Court to overturn the CTA's decisions.

Issue:

  • (Unlock)

Ruling:

  1. Yes, the BCDA is a government instrumentality and is exempt from the payment of legal fees.
  2. Yes, the CTA En Banc erred in affirming the CTA First Division's dismissal of BCDA's petition for r...(Unlock)

Ratio:

  • The Supreme Court ruled that the BCDA is a government instrumentality vested with corporate powers, making it exempt from the payment of docket fees under Section 21, Rule 141 of the Rules of Court.
  • The Court explained that a government instrumentality may possess corporate powers without being classified as a government-owned and -controlled corporation (GOCC).
  • BCDA, established under Republic Act No. 7227, possesses authorized capital but is not structured as a stock or non-stock corporation, lacks stockholders or voting shares, and does not distribute dividends.
  • The Cou...continue reading

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