Case Digest (G.R. No. 204687)
Facts:
- United Coconut Planters Bank (UCPB) is the petitioner; Commissioner of Internal Revenue (CIR) is the respondent.
- In 2004, UCPB disposed of real properties acquired from defaulting clients, which were subject to creditable withholding taxes.
- UCPB posted net losses for 2004, preventing the utilization of these taxes.
- On April 15, 2005, UCPB filed its original Annual Income Tax Return (ITR) for 2004 but faced issues with the Bureau of Internal Revenue's (BIR) Electronic Filing and Payment System (EFPS).
- UCPB refiled the ITR, which was recorded as an amended return.
- Two additional amended ITRs were filed on May 19, 2005, and October 13, 2006, both indicating losses and excess tax credits.
- On March 20, 2007, UCPB filed a claim for a tax refund or tax credit certificate for unutilized creditable withholding taxes amounting to ₱43,484,162.00 for 2004.
- The claim was submitted to the Large Taxpayers Audit & Investigation Division of the BIR.
- UCPB filed a Petition for Review with the Court of Tax Appeals (CTA) on April 16, 2007, after the CIR did not act on its claim.
- The CIR opposed the claim, citing improper documentation and premature filing.
- The CTA Division denied UCPB's petition on September 17, 2010, stating that carrying over excess credits negated the refund claim.
- UCPB's motion for reconsideration was denied, leading to a petition for review with the CTA En Banc, which affirmed the CTA Division's ruling.
- UCPB subsequently filed a petition for review on certiorari with the Supreme Court.
Issue:
- (Unlock)
Ruling:
- The Supreme Court affirmed the ruling of the CTA En Banc, upholding the denial of UCPB's claim for refund or issuance of a tax credit certificate for the unut...(Unlock)
Ratio:
- The Court's decision was based on Section 76 of the National Internal Revenue Code (NIRC) of 1997, which states that once a taxpayer opts to carry over excess tax credits, that choice is irrevocable for the taxable period.
- UCPB's action of carrying over excess credits to its 2005 Quarterly Income Tax Returns negated its earlier intention to claim a ref...continue reading
Case Digest (G.R. No. 204687)
Facts:
The case involves United Coconut Planters Bank (UCPB) as the petitioner and the Commissioner of Internal Revenue (CIR) as the respondent. The events leading to this case began in 2004 when UCPB, engaged in banking, disposed of real properties acquired from defaulting clients. These transactions were subject to creditable withholding taxes, which UCPB could not utilize due to posting net losses for that year. On April 15, 2005, UCPB filed its original Annual Income Tax Return (ITR) for the year ending December 31, 2004, but encountered difficulties completing the form through the Bureau of Internal Revenue's (BIR) Electronic Filing and Payment System (EFPS). Consequently, UCPB refiled the ITR, which was captured as an amended return. UCPB subsequently filed two amended ITRs on May 19, 2005, and October 13, 2006, both reflecting losses and excess tax credits. On March 20, 2007, UCPB filed a claim for a tax refund or tax credit certificate for unutilized creditable withholding taxes amounting to ₱43,484,162.00 for the taxable year 2004. The claim was filed with the Large Taxpayers Audit & Investigation Division of the BIR. Due to the impending expiration of the period to file a judicial claim for refund, UCPB filed a Petition for Review with the Court of Tax Appeals (CTA) on April 16, 2007, after the CIR failed to act on its claim. The CIR opposed the claim, argui...