Professional Documents
Culture Documents
182364
August 3, 2010
October 6, 2010
HELD:
(1) NO. The right to claim the refund must be reckoned from the close of the taxable quarter
when the sales were made in this case September 30, 2004. The Court added that the rules
under Sections 204 (C) and 229 as cross-referred to Section 114 do not apply as they only cover
erroneous payments or illegal collections of taxes which is not the case for refund of unutilized
input VAT. Thus, the claim was filed on time even if 2004 was a leap year since the sanctioned
method of counting is the number of months.
(2) YES. Section 112 mandates that the taxpayer filing the refund must either wait for the
decision of the CIR or the lapse of the 120-day period provided therein before filing its judicial
claim. Failure to observe this rule is fatal to a claim. Thus, Section 112 (A) was interpreted to
refer only to claims filed with the CIR and not appeals to the CTA given that the word used is
application. Finally, the Court said that applying the 2-year period even to judicial claims
would render nugatory Section 112 (D) which already provides for a specific period to appeal to
the CTA --- i.e., (a) within 30 days after a decision within the 120-day period and (b) upon expiry
of the 120-day without a decision.
ISSUE:
Is Republic Act 9337 constitutional insofar as it excluded PAGCOR from the enumeration of
GOCCs exempt from the payment of corporate income tax?
HELD:
YES. The original exemption of PAGCOR from corporate income tax was not made pursuant to
a valid classification based on substantial distinctions so that the law may operate only on some
and not on all. Instead, the same was merely granted due to the acquiescence of the House
Committee on Ways and Means to the request of PAGCOR.
The argument that the withdrawal of the exemption also violates the non-impairment clause will
not hold since any franchise is subject to amendment, alteration or repeal by Congress.
However, the Court made it clear that PAGCOR remains exempt from payment of indirect taxes
and as such its purchases remain not subject to VAT, reiterating the rule laid down in the Acesite
case.
maintenance of toll facilities on public improvements are activities of public consequence that
necessarily require a special grant of authority from the state.
A tax is imposed under the taxing power of the government principally for the purpose of raising
revenues to fund public expenditures. Toll fees, on the other hand, are collected by private
tollway operators as reimbursement for the costs and expenses incurred in the construction,
maintenance and operation of the tollways, as well as to assure them a reasonable margin of
income. Although toll fees are charged for the use of public facilities, therefore, they are not
government exactions that can be properly treated as a tax. Taxes may be imposed only by the
government under its sovereign authority, toll fees may be demanded by either the government
or private individuals or entities, as an attribute of ownership.
HELD:
(1) NO. Sony Philippines did in fact incur expenses supported by valid VAT invoices when it
paid for certain advertising costs. This is sufficient to accord it the benefit of input VAT credits
and where the money came from to satisfy said advertising billings is another matter but does not
alter the VAT effect. In the same way, Sony Philippines can not be deemed to have received the
reimbursable as a fee for a VAT-taxable activity. The reimbursable was couched as an aid for
Sony Philippines by SIS in view of the companys dire or adverse economic conditions. More
importantly, the absence of a sale, barter or exchange of goods or properties supports the nonVAT nature of the reimbursement. This was distinguished from the COMASERCO case where
even if there was similarly a reimbursement-on-cost arrangement between affiliates, there was in
fact an underlying service. Here, the advertising services were rendered in favor of Sony
Philippines not SIS.
(2) NO. A Letter of Authority should cover a taxable period not exceeding one year and to
indicate that it covers unverified prior years should be enough to invalidate it. In addition, even
if the Final Withholding Tax was covered by Sony Philippines fiscal year ending March 1998,
the same fell outside of the period 1997 and was thus not validly covered by the Letter of
Authority.
April 2, 2009