Case Digest (G.R. No. 105938) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Commissioner of Internal Revenue v. American Express International, Inc. (Philippine Branch), G.R. No. 152609, decided on June 29, 2005, the Philippine Branch of American Express (hereinafter “Amex Philippines”), a VAT-registered servicing unit of its Hong Kong parent, filed amended quarterly VAT returns for 1997 on March 23, 1999, reclassifying its foreign-currency–paid fees as zero-rated and reflecting excess input VAT of ₱3,763,060.43. On April 13, 1999, it formally requested a refund of ₱3,751,067.04, but the Commissioner of Internal Revenue took no action, prompting Amex Philippines to file a petition with the Court of Tax Appeals (CTA) on April 15, 1999. The CTA granted a refund of ₱3,352,406.59, which the Court of Appeals (CA) affirmed in CA-GR SP No. 62727 on February 28, 2002. The Commissioner then sought relief before the Supreme Court via a Rule 45 petition. Under the National Internal Revenue Code of 1986, as amended by RA Nos. 7716 (1994) and 8424 (1997), Section Case Digest (G.R. No. 105938) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Registration
- Commissioner of Internal Revenue (petitioner) vs. American Express International, Inc. (Philippine Branch) (respondent).
- Respondent is a duly registered VAT taxpayer since March 1988 (RDO 47, VAT Reg. No. 32A-3-004868).
- Transactions and Tax Filings
- For 1997, respondent filed quarterly VAT returns reporting minimal taxable sales and no zero-rated sales.
- On March 23, 1999, respondent amended its 1997 returns to classify P80,309,633.20 of services as zero-rated, generating P3,763,060.43 of input VAT.
- On April 13, 1999, respondent applied for refund of excess input VAT of P3,751,067.04 under Section 110(B) of the 1997 Tax Code; petition filed April 15, 1999.
- Proceedings Below
- The Court of Tax Appeals (CTA) granted the refund of P3,352,406.59, finding respondent’s services zero-rated under Section 108(B) of the Tax Reform Act of 1997 and RR 5-96.
- The Court of Appeals (CA) affirmed the CTA, holding the service fell under Sec. 4.102-2(b)(2) of RR 7-95 as amended by RR 5-96.
- Petitioner elevated the case to the Supreme Court via Rule 45 petition, challenging entitlement to the refund.
Issues:
- Main Issue
- Whether the CA erred in affirming respondent’s entitlement to refund P3,352,406.59 as excess input VAT for 1997.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)