Case Digest (G.R. No. 188016)
Facts:
Republic of the Philippines, represented by the Commissioner of Internal Revenue v. Team (Phils.) Energy Corporation (formerly Mirant (Philips.) Energy Corporation), G.R. No. 188016, January 14, 2015, First Division, Bersamin, J., writing for the Court.Team (Phils.) Energy Corporation (respondent), a domestic power-generation company, filed its annual Income Tax Returns (ITRs) for calendar years 2002 and 2003 on April 15, 2003 and April 15, 2004, respectively, showing excess creditable withholding taxes (CWT) of P6,232,003.00 (2002) and P10,134,410.00 (2003). The respondent indicated on the ITRs its option for refund and on March 22, 2005 filed an administrative claim for refund or issuance of a tax credit certificate for the aggregate P16,366,413.00. Because of BIR inaction, the respondent filed a petition for review with the Court of Tax Appeals (CTA) on April 14, 2005 to toll prescription.
The Commissioner of Internal Revenue (petitioner) answered, asserting among other defenses that the refund claim lacked adequate documentary substantiation, that taxes paid are presumed correct, and that the respondent failed to show the amounts were not carried over to succeeding periods or otherwise applied. The CTA in Division conducted trial, received testimony and documentary evidence (including ten Certificates of Creditable Taxes Withheld at Source and the respondent’s Annual ITRs for 2002–2004), and on May 15, 2008 granted the petition and ordered refund or issuance of a tax credit certificate in the modified amount of P16,366,412.59. The Division found the claim timely, that the fact of withholding was established, and that the income subject to withholding was declared in the respondent’s ITRs. The Division denied the Commissioner’s motion for reconsideration on September 5, 2008.
The Commissioner elevated the matter to the CTA En Banc, arguing chiefly that the respondent failed to comply with Section 76 of the NIRC (requiring presentation of quarterly returns to prove non-carryover) and that tax refunds are construed strictissimi juris. On April 15, 2009, the CTA En Banc dismissed the petition and affirmed the Division decision, holding that the petitioner’s arguments were standard defenses, that the respondent had presented sufficient evidence at trial, and that the petitioner failed to present rebuttal quarterly returns which it had the opportunity to submit. The CTA En Banc relied on prior rulings (e.g., Banco Filipino Savings and Mortgage Bank v. Court of Appeals, Court of Tax Appeals and Commissioner of Internal Revenue) on the evidentiary f...(Pro-only)
Issues:
- May a respondent be denied consideration of a challenge based on the non-presentation of its quarterly returns when that point was not adequately pressed in the trial court?
- Did Team (Phils.) Energy Corporation prove entitlement to a refund or issuance of a tax credit certificate for excess creditable withholding taxes for calendar years ...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)