Case Digest (G.R. No. 217898)
Facts:
Commissioner of Internal Revenue v. Bases Conversion and Development Authority, G.R. No. 217898, January 15, 2020, Supreme Court First Division, Lazaro‑Javier, J., writing for the Court.The petitioner is the Commissioner of Internal Revenue (CIR); the respondent is the Bases Conversion and Development Authority (BCDA). BCDA owned four contiguous lots in Bonifacio Global City (the “Expanded Big Delta Lots”), totaling 12,036 sq. m., which it agreed to sell to an unincorporated joint venture called the Net Group (composed of four corporations) for a total purchase price of ₱2,032,749,327.96. The Net Group withheld ₱101,637,466.40 as Creditable Withholding Tax (CWT) because BCDA had not produced a tax‑exemption certification by the agreed date.
BCDA requested the tax‑exemption certification from the CIR on May 28, 2008; the CIR did not respond. The Deeds of Absolute Sale were executed on July 31, 2008, and the Net Group issued BIR Form No. 2307 certificates and remitted the withheld amount to BIR Regional District Office No. 44. BCDA sought a refund administratively (March 9, 2009) but received no response and thereafter filed a petition with the Court of Tax Appeals (CTA) on July 29, 2010, asserting that proceeds from such sales are exempt under Republic Act (RA) 7227, as amended by RA 7917.
The CTA First Division, in a Decision dated September 13, 2013, granted BCDA’s refund claim and ordered the CIR to refund ₱101,637,466.40; a motion for reconsideration was denied January 30, 2014. On the CIR’s appeal, the CTA En Banc affirmed by Decision dated December 16, 2014 and denied the CIR’s motion for reconsideration in a Resolution dated April 15, 2015. The CIR filed this petition for review with the Supreme Court (petition for review on certiorari), challenging the CTA En Banc rulings and arguing (inter alia) that (a) RA 7227’s exemption was impliedly repealed by the later, general National Intern...(Pro-only)
Issues:
- Did BCDA comply with the procedural and documentary requirements for a tax refund (e.g., Section 10 of Revenue Regulation No. 6‑85)?
- Are the sale proceeds of the Expanded Big Delta Lots exempt from Creditable Withholding Tax under Section 8 of RA 7227, as amended by RA 7917, or was that exemption superseded or repealed by the later, general NIRC Section 27(C)?
- Does BCDA’s purported “carry over” of excess credit in its income tax retur...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)