Copyright © 2019 by Du-Baladad and Associates (BDB Law). All rights reserved. No part of this issue covered by this copyright may be produced and/or used in any form or by any means – graphic, electronic and mechanical without the written permission of the publisher.
What's Inside ...
- Tax Case Digest
- Court Issuances
- SC
- Court Issuances
- The presence of zero-rated or effectively zero-rated sales is very critical for VAT refund. (Maibarara Geothermal Inc., vs. Commissioner of Internal Revenue, CTA Case Nos. 9119, 9201, 9254 and 933, March 4, 2019)
- Direct denial of receipt of PAN shifts the burden to the party favored by the presumption to establish that the subject mailed letter was actually received by the taxpayer. (Far East Seafood, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 8909, March 4, 2019)
- A request for reconsideration is not the same as a request for reinvestigation which suspends the running of the statute of limitations. (WPP Marketing Communications Inc. (formerly known as J. Walter Thompson Company (Philippines) Inc.) vs. Commissioner of Internal Revenue, CTA Case No. 9778, March 5, 2019)
- The BIR must present evidence to justify the application of the ten-year prescriptive period. (Commissioner of Internal Revenue vs. Parity Packaging Corporation, CTA EB No. 1783 (CTA Case No. 8825), March 5, 2019)
- The taxpayer must receive the PAN, and the FAN to comply with the due process requirement. (Bostik Philippines, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 9019, March 05, 2019)
- The absence of a valid LOA originating from the CIR or the Revenue Regional Director renders the assessment void. (Central Luzon Drug Corporation vs. Commissioner of Internal Revenue, CTA Case No. 8952, March 6, 2019)
- In case the basic tax exceeds P1,000,000.00 or where the settlement offered is less than the said prescribed minimum rates, the compromise must be approved by the Evaluation Board. (C.F. Sharp Crew Management Inc., vs. Commissioner of Internal Revenue, CT A Case No. 9707, March 6, 2019)
- Under the VAT System, compliance with the 120+30 day is mandatory and jurisdictional. (Northwind Power Development Corporation vs. Commissioner Internal Revenue, CTA CASE NO. 9152, March 6, 2019)
- A BOI-registered entity with 100% exports is not entitled to refund of input VAT. Otherwise, the taxpayer would unjustly be enriched at the expense of the government. (Hinatuan Mining Corporation vs. Commissioner of Internal Revenue, CTA Case No. 9287, March 6, 2019)
- The presentation of the registry return receipt with an unauthenticated signature is not equivalent to proof of actual receipt of notices by Taxpayer. (People of the Philippines vs. Engr. Reynaldo A. Matanguihan, CTA Crim. No. A-5 (Criminal Case No. 01-194392), March 7, 2019)
- It is important for the taxpayer to prove that it has enough prior year's excess input VAT credits to cover its output VAT liability for the current taxable year. (Maxima Machineries Inc. vs. Commissioner of Internal Revenue, CTA Case No. 9358, March 11, 2019)
- In determining the BIR’s right to collect, the validity or invalidity of an assessment, in relation to the due process requirements; or prescription of the right to assess; or the fact of payment of said assessment; may also be reviewed by the Court and are properly included as "other matters". (Grand Plaza Hotel Corporation vs. Commissioner of Internal Revenue, CTA Case No. 8892, March 11, 2019)
- The prima facie correctness of a tax assessment does not apply upon proof that an assessment is utterly without foundation, meaning it is arbitrary and capricious. In order to stand the test of judicial scrutiny, the assessment must be based on actual facts. (Northern Mindanao Sales Corporation vs. Commissioner of Internal Revenue, CTA Case No. 8959, March 11, 2019)
- The DST is actually an excise tax, because it is imposed on the transaction rather than on the document. (Liberty TelecomsHoldings, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 9311, March 11, 2019)
- It can inferred from RMC No. 61-05 and Section 4.108-3 (f) of RR No. 16-05 that generation and transmission charges, including the VAT thereon, although billed to the end-user by the distribution companies and electric cooperatives, are not part of their gross receipts; neither can they claim an input tax on such charges. (Toledo Power Company vs. Commissioner of Internal Revenue, CTA Case Nos. 8450, 8512, 8547 & 8596, March 15, 2019)
- Repeated acts of paying the principal deficiency taxes by installment and repeated requests for reduction, waiver and abatement of the interest and increments does not justify the suspension of the prescriptive period for collection.(Commissioner of Internal Revenue vs. Asia United Insurance, Inc., CTA EB NO 1725(CTA Case No. 8916), March 17, 2019)
- Unsupported under-declaration of expenses does not automatically result in recognition of income. (Lancaster Colors International, Inc. vs. Commission of Internal Revenue CTA Case No. 8933 dated March 28, 2019)
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Copyright © 2019 by Du-Baladad and Associates (BDB Law). All rights reserved. No part of this issue covered by this copyright may be produced and/or used in any form or by any means – graphic, electronic and mechanical without the written permission of the publisher.
