Case Digest (G.R. No. 263481)
Facts:
In Panasonic Communications Imaging Corporation of the Philippines v. Commissioner of Internal Revenue (G.R. No. 178090, February 08, 2010), petitioner Panasonic Communications Imaging Corporation, a VAT-registered preferred pioneer exporter of plain paper copiers and components under the Omnibus Investments Code of 1987, generated export sales totalling US$24,678,964.93 from April 1, 1998 to March 31, 1999. Trusting these sales were zero-rated under Section 106(A)(2)(a)(1) of the 1997 National Internal Revenue Code as amended by R.A. 8424, it incurred input VAT amounting to ₱9,368,482.40. On March 12 and July 20, 1999, Panasonic filed with the Bureau of Internal Revenue (BIR) two separate applications for refund or tax credit of the unutilized input VAT. When the BIR failed to act, Panasonic filed a petition for review with the Court of Tax Appeals (CTA) on December 16, 1999. On August 22, 2006, the CTA First Division denied the petition, holding that the exp
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Case Digest (G.R. No. 263481)
Facts:
- Parties and nature of business
- Panasonic Communications Imaging Corporation of the Philippines (Panasonic) produces and exports plain paper copiers and sub-assemblies, parts, and components; registered with the Board of Investments as a preferred pioneer enterprise under the Omnibus Investments Code of 1987 and as a VAT enterprise.
- Commissioner of Internal Revenue (CIR) is respondent to Panasonic’s claim for VAT refund.
- Export sales and input VAT
- From April 1 to September 30, 1998, Panasonic’s export sales totaled US$12,819,475.15; from October 1, 1998 to March 31, 1999, US$11,859,489.78; aggregate US$24,678,964.93.
- Input VAT paid amounted to P4,980,254.26 (first period) and P4,388,228.14 (second period), totaling P9,368,482.40, all attributable to its zero-rated export sales.
- Procedural history
- Panasonic filed two refund or tax-credit applications with the BIR on March 12 and July 20, 1999; inaction by the BIR led to a petition for review with the Court of Tax Appeals (CTA) on December 16, 1999.
- CTA First Division (August 22, 2006) denied the refund for failure to print “zero-rated” on export invoices as required by Section 4.108-1 of RR 7-95; CTA en banc (May 23, 2007) affirmed; petition for review filed with the Supreme Court under R.A. 9282.
Issues:
- Core issue
- Whether the CTA en banc correctly denied Panasonic’s claim for VAT refund on the ground that its sales invoices did not state the term “zero-rated.”
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)