Case Digest (G.R. No. 164594) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Commissioner of Internal Revenue v. Bases Conversion and Development Authority (G.R. No. 217898, January 15, 2020), the respondent, Bases Conversion and Development Authority (BCDA), owned four parcels of land in Bonifacio Global City, Taguig City (“Expanded Big Delta Lots”) totaling 12,036 sq. m. On May 28, 2008, BCDA requested from petitioner Commissioner of Internal Revenue (CIR) a certification of tax exemption under its charter (Republic Act No. 7227, as amended by RA 7917) in connection with a sale to the unincorporated joint venture “Net Group” for ₱2,032,749,327.96. Failing to obtain the exemption, the Net Group withheld ₱101,637,466.40 as Creditable Withholding Tax (CWT) and remitted it to the BIR. After BCDA’s written demands for refund went unanswered, it filed a petition with the Court of Tax Appeals (CTA) on July 29, 2010. The CTA First Division granted the refund in its September 13, 2013 Decision; its Reconsideration was denied on January 30, 2014. The CTA En B Case Digest (G.R. No. 164594) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Subject Matter
- Petitioner: Commissioner of Internal Revenue (CIR).
- Respondent: Bases Conversion and Development Authority (BCDA), owner of four real properties in Bonifacio Global City totaling 12,036 sq. m. (“Expanded Big Delta Lots”).
- Sale Transaction and Withholding
- BCDA contracted with the “Net Group” for ₱2,032,749,327.96. The Net Group agreed to withhold ₱101,637,466.40 as Creditable Withholding Tax (CWT) pending BCDA’s tax‐exemption certification.
- BCDA’s request for certification (May 28, 2008) went unanswered by the BIR. On July 31, 2008, sale was perfected; the Net Group withheld and remitted the CWT to BIR RDO No. 44.
- Administrative and Judicial Proceedings
- BCDA sought refund from the BIR (March 9, 2009); no response.
- BCDA filed petition before the Court of Tax Appeals (CTA) on July 29, 2010, claiming exemption under RA 7227 as amended by RA 7917.
- CTA First Division Decision (Sept. 13, 2013) granted refund of ₱101,637,466.40; MFR denied (Jan. 30, 2014).
- CTA En Banc Decision (Dec. 16, 2014) affirmed; MFR denied (Apr. 15, 2015).
- CIR filed petition for review with the Supreme Court (G.R. No. 217898).
Issues:
- Substantive Issue
- Whether BCDA is exempt from CWT on the sale of its Global City properties under its charter (RA 7227 as amended by RA 7917) despite the general provisions of the NIRC.
- Procedural Issue
- Whether BCDA complied with documentary and procedural requirements for a tax refund under BIR regulations and the NIRC.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)