06-02-2019, 02:56 PM
Synopsis
Settled is the rule that a claim for refund duly filed with the Commissioner of Internal Revenue is a condition precedent to the prosecution of a suit before the Court of Tax Appeals (CTA) and failure to comply with this condition subject the petition for dismissal for lack of cause of action (Republic vs. Limaco and De Guzman Commercial Co., 5 SCRA 990).
Claims for refund are construed strictly against herein petitioner for the same partakes the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211).
Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof.
In case of full or partial. denial of the claim for tax refund or tax credit, or the fallure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals.
In Rohm Apollo Semiconductor Philippines vs. Commissioner of Internal Revenuti-8 , citing the landmark case of Commissioner of Internal Revenue vs. San Roque Power Corporatiort9 (San Roque), the Supreme Court held that the taxpayer can file an appeal in one of two ways: (1) file the judicial claim within 30 days after the BIR Commissioner denies the claim within the 120-day waiting period, or (2) file the judicial claim within 30 days from the expiration of the 120-day period if the BIR Commissioner does not act within that period.
In the San Roque case, the Supreme Court emphasized that compliance with the 120+30 day periods prescribed under Section 112© of the NIRC is mandatory and jurisdictional.
See full text attached.
Settled is the rule that a claim for refund duly filed with the Commissioner of Internal Revenue is a condition precedent to the prosecution of a suit before the Court of Tax Appeals (CTA) and failure to comply with this condition subject the petition for dismissal for lack of cause of action (Republic vs. Limaco and De Guzman Commercial Co., 5 SCRA 990).
Claims for refund are construed strictly against herein petitioner for the same partakes the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211).
Period within which Refund or Tax Credit of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof.
In case of full or partial. denial of the claim for tax refund or tax credit, or the fallure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals.
In Rohm Apollo Semiconductor Philippines vs. Commissioner of Internal Revenuti-8 , citing the landmark case of Commissioner of Internal Revenue vs. San Roque Power Corporatiort9 (San Roque), the Supreme Court held that the taxpayer can file an appeal in one of two ways: (1) file the judicial claim within 30 days after the BIR Commissioner denies the claim within the 120-day waiting period, or (2) file the judicial claim within 30 days from the expiration of the 120-day period if the BIR Commissioner does not act within that period.
In the San Roque case, the Supreme Court emphasized that compliance with the 120+30 day periods prescribed under Section 112© of the NIRC is mandatory and jurisdictional.
See full text attached.