Case Summary (G.R. No. 244154)
Relevant Dates and Proceedings
Zuellig-PH filed its Quarterly VAT Returns for 2010 between April 22, 2010, and January 20, 2011. Subsequently, it submitted an administrative claim for a refund on February 17, 2011, presenting multiple additional documents upon request by the BIR across various dates until April 29, 2014. The BIR did not act on the claim within the stipulated 120-day period, leading Zuellig-PH to file a Petition for Review before the CTA-Second Division on September 25, 2014.
Statutory Framework
Section 112 (C) of the National Internal Revenue Code of 1997 establishes that the CIR must act on a taxpayer's administrative claim for tax credit or refund within 120 days after the complete documents are submitted. If there is no action from the CIR within this period, the taxpayer may file a judicial claim with the CTA within 30 days after the expiration.
Issues Raised by the Parties
The BIR contended that Zuellig-PH’s claim was belated because it was filed after the 30-day period following the denial of its administrative claim. In turn, Zuellig-PH argued that it complied with requests from the BIR and that the timeline for its claim should be extended based on their interactions with BIR officials.
CTA-Second Division's Ruling
The CTA-Second Division ruled that the 120-day period began on June 29, 2011, when the BIR formally asked for additional documents. The petitioner's subsequent submissions did not reset this period because they were made in response to verbal requests, which were deemed insufficient to demonstrate that the claim was still pending.
CTA En Banc's Affirmation
The CTA En Banc upheld the ruling of the CTA-Second Division, emphasizing that the government cannot be estopped by the actions of its agents, thereby affirming that Zuellig-PH’s claim was indeed filed out of time.
Supreme Court's Ruling
The Supreme Court found in favor of Zuellig-PH, asserting that the BIR's verbal requests and the taxpayer's compliance established that the 120-day period should commence from Zuellig-PH's last documented submission on April 29, 2014. Since the BIR did not act within the required timeframe, Zuellig-PH was within its rights to file a judicial claim, thus rendering its Petition for Review timely.
Application of Relevant Principles
The Court highlighted that while verbal requests for additional documents were accepted in this case, it also indicated that the requirement for a written request was not an absolute prerequisite for determining the start of the 12
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Case Overview
- The case revolves around Zuellig-Pharma Asia Pacific Ltd. Phils. ROHQ (referred to as Zuellig-PH), which filed a petition for review on certiorari challenging the decision of the Court of Tax Appeals En Banc (CTA En Banc) dated January 21, 2019.
- The CTA En Banc upheld the dismissal of Zuellig-PH’s claim for a refund or issuance of a tax credit certificate amounting to ₱39,931,971.21, representing its excess and unutilized input value-added tax (VAT) for the calendar year 2010.
Background of the Case
- Zuellig-PH is the regional operating headquarters of Zuellig-Pharma Asia Pacific Ltd., a foreign corporation incorporated under the laws of Hong Kong.
- For the year 2010, Zuellig-PH filed its Quarterly VAT Returns on specified dates and subsequently submitted amended returns.
- On February 17, 2011, Zuellig-PH filed an administrative claim for refund with the Bureau of Internal Revenue (BIR) for its excess and unutilized input VAT.
Administrative Claims and Processing
- Zuellig-PH received a Letter of Authority from the BIR on March 3, 2011, allowing designated officers to examine its records for VAT.
- Subsequent requests for documentation from the BIR occurred, leading to multiple submissions by Zuellig-PH from 2011 to 2014.
- Due to delays in processing, Zuellig-PH sought assurances from the BIR regarding the timely processing of its refund claim.
BIR’s Position
- The BIR contended that the