Case Summary (G.R. No. 173241)
Background of the Case
Silicon Philippines is a corporation engaged in designing and manufacturing integrated circuits, registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer. On May 6, 1999, it filed for a VAT refund totaling PHP 25,531,312.83 for claims tied to a prior quarter. The CIR did not act on this claim, leading to further legal action.
Proceedings in the Court of Tax Appeals
Silicon Philippines initially sought recourse through the Court of Tax Appeals (CTA) due to the lack of response from the CIR. The CTA Division, in its ruling on November 24, 2003, partially granted the application, approving the claim for tax credit related to capital goods but denying the claim for zero-rated sales due to failure to substantiate compliance with invoicing requirements under the National Internal Revenue Code of 1997.
Denial and Motion for Reconsideration
Following the CTA Division's decision, Silicon Philippines filed a Motion for Partial Reconsideration, which was also denied, leading them to escalate the matter to the CTA en banc, further affirming the earlier rulings dismissing part of their claim.
Petition for Review to the Supreme Court
In seeking review from the Supreme Court, Silicon Philippines raised three key issues: the denial of its refund claim based on the CIR's imposition of invoice requirements; the perceived disregard of evidence by the CTA en banc; and the overall denial of the claim for its excess input VAT.
Interpretation of Tax Code Provisions
The Supreme Court's decision heavily referenced Section 112 of the 1997 Tax Code regarding the conditions under which a VAT-registered taxpayer may claim refunds. It emphasized strict compliance with mandatory and jurisdictional deadlines—120 days for the CIR to decide on the claim, and an additional 30 days for the taxpayer to appeal to the CTA if the CIR did not act.
Judicial Claim Filing and Timeliness
The Supreme Court determined that Silicon Philippines did not file its judicial claim within the required 30 days after the expiration of the 120-day period for the CIR’
...continue readingCase Syllabus (G.R. No. 173241)
Case Overview
- The case involves a Petition for Review on Certiorari filed by Silicon Philippines, Inc. (SPI) against the Commissioner of Internal Revenue (CIR).
- SPI seeks to reverse decisions made by the Court of Tax Appeals (CTA) regarding its claim for a tax credit/refund of input Value-Added Tax (VAT).
- The legal proceeding includes the CTA's rulings that partially granted SPI's claims while denying others related to zero-rated sales.
Parties Involved
Petitioner: Silicon Philippines, Inc. (formerly Intel Philippines Manufacturing, Inc.)
- A corporation engaged in designing, developing, manufacturing, and exporting integrated circuit components.
- Registered as a VAT taxpayer and a preferred pioneer enterprise under the Omnibus Investments Code.
Respondent: Commissioner of Internal Revenue (CIR)
- Represents the government's interest in tax collection and enforcement.
Background of the Case
SPI filed an application for tax credit/refund of VAT paid for the third quarter of 1998, totaling ₱25,531,312.83.
- The amount includes VAT on imported and locally purchased capital goods and VAT on purchases based on invoices received.
The application was submitted on May 6, 1999, but the CIR failed to act, leading SPI to file a Petition for Review with the CTA on September 29, 2000.
Court of Tax Appeals Decisions
Decision Dated November 24, 2003:
- The CTA Division partially granted SPI’s claim, allowing a refund of ₱2,425,764 for capital goods but denying ₱23,105,548.83 for zero-rated sales due to lack of proper substantiation.
- Noted failure