Case Summary (G.R. No. 257446)
Facts of the Case
Dohle Shipmanagement Philippines Corporation (Dohle) submitted an application for a refund or issuance of a tax credit certificate (TCC) for its unutilized input Value-Added Tax (VAT) on March 31, 2014, pertaining to zero-rated sales for the four quarters of the calendar year 2012. After Dohle submitted additional supporting documents on July 28, 2014, and received no action from the Commissioner of Internal Revenue (CIR), it filed a Petition for Review with the Court of Tax Appeals (CTA) on December 23, 2014. The CTA Second Division ruled in favor of Dohle, partially granting the claim for a refund amounting to PHP 7,196,472.58, recognizing that Dohle timely filed its claim within the 120+30-day periods stipulated in Section 112(C) of the 1997 Tax Code.
Jurisdiction and Claims
The CIR contended that the CTA Second Division asserted jurisdiction over Dohle's claim incorrectly. The CIR claimed that Dohle's judicial claim for refund was filed outside the allowable periods as per Section 112 of the 1997 Tax Code, referencing the case of Pilipinas Total Gas, Inc. v. CIR. In particular, the CIR argued that Dohle had until only April 30, 2014, to submit supporting documents, and further that Dohle’s appeal to the CTA was not within the legally prescribed time frame. Dohle countered these assertions by asserting the 120-day period should begin only upon submission of complete documents.
CTA En Banc Rulings
The CTA En Banc upheld the CTA Second Division's decision, reinforcing that the CIR did not successfully rebut the facts surrounding Dohle's entitlement to the refund. The CIR's motion for reconsideration was denied, with the CTA affirming that Dohle's judicial claim for refund was timely based on previous jurisprudence.
Legal Interpretation of Section 112
The decision focused heavily on the interpretation of Section 112 of the 1997 Tax Code as it relates to the processes and timelines for claiming a VAT refund. The 120-day period for the CIR to act on claims is reckoned from the date of submission of complete documents. The essence of the jurisprudential ruling in Pilipinas Total Gas was examined, emphasizing that it is ultimately the taxpayer's right to determine when the documents are complete for the purposes of processing the claim.
Timeline of Events
- March 31, 2014: Dohle filed its administrative claim with supporting documents.
- April 30, 2014: Deadline for Dohle to submit all required documents as per the CIR's interpretation is contested.
- July 28, 2014: Dohle submits additional documents.
- November 25, 2014: End of the 120-day period from the date Dohle submitted completed documents.
- Decembe
Case Syllabus (G.R. No. 257446)
Case Background and Procedural History
- Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review on Certiorari to contest Court of Tax Appeals En Banc (CTA EB) Decision dated July 26, 2018 and Resolution dated April 1, 2019.
- The CTA EB in CTA EB No. 1665 affirmed CTA Second Division decision partially granting respondent Dohle Shipmanagement Philippines Corporation (Dohle) a VAT refund claim amounting to PHP 7,196,472.58 for unutilized excess input VAT attributable to zero-rated sales in 2012.
- Dohle filed administrative claim for refund or issuance of Tax Credit Certificate (TCC) on March 31, 2014, supported by additional documents on July 28, 2014.
- The CIR took no action on the administrative claim, prompting Dohle to file a judicial claim before the CTA Second Division on December 23, 2014.
- The CTA Second Division ruled in favor of Dohle partially, finding the judicial claim timely filed and the refund claim partially substantiated.
- CIR filed motion for reconsideration; denied by CTA Special Second Division.
- CIR elevated case to CTA EB, arguing non-compliance with documentary requirements and hearsay nature of evidence.
- CTA EB dismissed CIR’s petition and denied reconsideration, ruling in favor of Dohle's timely and valid claim.
- CIR brought the matter to the Supreme Court, challenging CTA's exercise of jurisdiction over the allegedly late judicial claim.
Facts
- Administrative claim for refund filed by Dohle on March 31, 2014 with some supporting documents.
- Additional documents submitted by Dohle on July 28, 2014.
- CIR did not act on the claim nor notify Dohle of any insufficiency or deficiency in documents.
- Judicial claim for VAT refund was filed by Dohle on December 23, 2014.
Legal Issue
- Whether Dohle's judicial claim for VAT refund was filed beyond the 120+30-day prescriptive periods under Section 112 of the 1997 National Internal Revenue Code (NIRC), thus depriving the CTA of jurisdiction.
Statutory and Regulatory Framework
- Section 112(A) of the 1997 Tax Code grants taxpayers two years from the close of taxable quarter to apply for VAT refund or tax credit.
- Section 112(C) requires the CIR to act on administrative claims within 120 days from submission of complete supporting documents.
- If CIR denies or fail