Case Digest (G.R. No. 212699)
Facts:
- The case "Commissioner of Internal Revenue v. Philippine National Bank" (G.R. No. 212699) was decided on March 13, 2019.
- Philippine National Bank (PNB) sought a refund or issuance of a tax credit certificate for its excess and unutilized creditable withholding taxes (CWT) for the taxable year 2005.
- PNB electronically filed its Annual Income Tax Return (ITR) on April 17, 2006, and manually filed the same with the required attachments the following day.
- PNB filed its claim for a refund through letters dated February 12, 2007, June 22, 2007, and March 10, 2008, which were received by the Commissioner of Internal Revenue (CIR) on February 22, 2007, June 25, 2007, and March 13, 2008, respectively.
- Due to the CIR's inaction, PNB filed a petition for review before the Court of Tax Appeals (CTA) on April 11, 2008.
- The CTA Third Division initially denied PNB's claim, stating that the presentation of PNB's Annual ITR for 2006 was insufficient to prove that it did not carry over the claimed excess CWT to subsequent quarters of 2006.
- PNB's motion for reconsideration was also denied.
- PNB then appealed to the CTA En Banc, which initially denied the appeal but later granted PNB's motion for reconsideration, ruling that the presentation of Quarterly ITRs for succeeding years is not required by tax laws to establish entitlement to the refund.
- The CIR's subsequent motion for reconsideration was denied, leading to the present petition.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled that the presentation of the Quarterly ITRs for the succeeding taxable year is not indispensable for PNB's claim for a refund.
- The Supreme Cour...(Unlock)
Ratio:
- The Supreme Court held that there is no requirement under the National Internal Revenue Code (NIRC) or the Bureau of Internal Revenue (BIR) regulations mandating the submission of Quarterly ITRs of the succeeding taxable year for a claim of refund of excess or unutilized CWT.
- The Court emphasized that the burden of proof to establish entitlement to a refund lies with the claimant, who must comply with the statutory requirements: filing the claim within the two-year period, showing that the income received was declared as part of the gross income, and establishing the fact of withholding by presen...continue reading
Case Digest (G.R. No. 212699)
Facts:
The case of "Commissioner of Internal Revenue v. Philippine National Bank" (G.R. No. 212699) was decided on March 13, 2019. The Philippine National Bank (PNB) sought a refund or issuance of a tax credit certificate for its excess and unutilized creditable withholding taxes (CWT) for the taxable year 2005. PNB electronically filed its Annual Income Tax Return (ITR) on April 17, 2006, and manually filed the same with the required attachments the following day. PNB filed its claim for a refund through letters dated February 12, 2007, June 22, 2007, and March 10, 2008, which were received by the Commissioner of Internal Revenue (CIR) on February 22, 2007, June 25, 2007, and March 13, 2008, respectively. Due to the CIR's inaction, PNB filed a petition for review before the Court of Tax Appeals (CTA) on April 11, 2008. The CTA Third Division initially denied PNB's claim, stating that the presentation of PNB's Annual ITR for 2006 was insufficient to prove that it did not carry over the claimed excess CWT to subsequent quarters of 2006. PNB's motion for reconsideration was also denied. PNB then appealed to the CTA En Banc, which initially denied the appeal but later granted PNB's motion for reconsideration, ruling that the presentation of Quarterly ITRs for succeeding years is not required by ta...