Case Digest (G.R. No. 172378)
Facts:
- Silicon Philippines, Inc. (formerly Intel Philippines Manufacturing, Inc.) is the petitioner.
- The Commissioner of Internal Revenue (CIR) is the respondent.
- The petitioner is a corporation engaged in designing, developing, manufacturing, and exporting integrated circuit components.
- It is registered as a Value Added Tax (VAT) taxpayer and recognized as a preferred pioneer enterprise by the Board of Investments (BOI).
- On May 21, 1999, the petitioner filed for a credit/refund of unutilized input VAT amounting to P31,902,507.50 for the period from October 1, 1998, to December 31, 1998.
- The claimed amount included P15,170,082.00 for tax on imported and locally purchased capital equipment and P16,732,425.50 for VAT on purchases.
- Due to the CIR's inaction, the petitioner filed a Petition for Review with the Court of Tax Appeals (CTA) on December 27, 2000 (CTA Case No. 6212).
- The petitioner recorded zero-rated export sales of P3,027,880,818.42 for the fourth quarter of 1998, paid in acceptable foreign currency.
- The CIR raised defenses, including the assertion that the petitioner did not comply with Section 229 of the Tax Code and that the burden of proof lies with the claimant.
- On November 18, 2003, the CTA Division partially granted the claim, allowing a refund of P9,898,867.00 for input VAT on capital goods but denying the claim for input VAT on zero-rated sales due to lack of an Authority to Print (ATP) and failure to print "zero-rated" on invoices.
- The petitioner filed a motion for reconsideration, which was denied on August 10, 2004.
- The case was elevated to the CTA En Banc, which affirmed the lower court's ruling on September 30, 2005.
- The petitioner's motion for reconsideration was denied on April 20, 2006.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled that the CTA En Banc did not err in denying the claim for credit/refund of input VAT attributable to zero-rated sales due to the failure to present an ATP and the absence of the word "zero-rated" on the invoices.
- The Court upheld...(Unlock)
Ratio:
- The Supreme Court emphasized that the burden of proof for tax refund claims lies with the claimant.
- For zero-rated sales, the law requires VAT registration, engagement in zero-rated sales, and filing the clai...continue reading
Case Digest (G.R. No. 172378)
Facts:
The case involves Silicon Philippines, Inc. (formerly Intel Philippines Manufacturing, Inc.) as the petitioner and the Commissioner of Internal Revenue (CIR) as the respondent. Silicon Philippines, Inc. is a corporation duly organized under Philippine law, engaged in designing, developing, manufacturing, and exporting integrated circuit components. The company is registered as a Value Added Tax (VAT) taxpayer with the Bureau of Internal Revenue (BIR) and recognized as a preferred pioneer enterprise by the Board of Investments (BOI). On May 21, 1999, the petitioner filed an application for a credit/refund of unutilized input VAT amounting to P31,902,507.50 for the period from October 1, 1998, to December 31, 1998. This amount included P15,170,082.00 for tax paid on imported and locally purchased capital equipment and P16,732,425.50 for VAT paid on purchases during the same period.
Due to the inaction of the CIR, the petitioner filed a Petition for Review with the Court of Tax Appeals (CTA) on December 27, 2000, which was docketed as CTA Case No. 6212. The petitioner claimed to have recorded zero-rated export sales amounting to P3,027,880,818.42 for the fourth quarter of 1998, paid in acceptable foreign currency. The respondent, in its answer, raised several defenses, including the assertion that the petitioner failed to comply with the provisions of Section 229 of the Tax Code and that the burden of proof lies with the claimant. On November 18, 2003, the CTA Division partially granted the claim, allowing a refund of P9,898,867.00 for input VAT on capital goods but denying the claim for input VAT attributable to zero-rated sales due to the absence of an Authority to Print (ATP) from the BIR and ...