MINDANAO ll GEOTHERMAL PARTNERSHIP v. COMMISSIONER OF INTERNAL REVENUE, G.R. No. 193301 and G.R. No. 19 !

3", Ma#$% 11, &013 Taxation; prescriptive periods to file VAT refund. We summarize the rules on the determination of the prescriptive period for filing a tax refund or credit of unutilized input VAT as provided in Section 112 of the 1997 Tax Code as follo!s" #1$ An administrative claim must %e filed !ith the C&' !ithin t!o (ears after the close of the taxa%le )uarter !hen the zero*rated or effectivel( zero*rated sales !ere made+ #2$ The C&' has 12, da(s from the date of su%mission of complete documents in support of the administrative claim !ithin !hich to decide !hether to grant a refund or issue a tax credit certificate+ The 12,*da( period ma( extend %e(ond the t!o*(ear period from the filing of the administrative claim if the claim is filed in the later part of the t!o*(ear period+ &f the 12,*da( period expires !ithout an( decision from the C&' then the administrative claim ma( %e considered to %e denied %( inaction+ #-$ A .udicial claim must %e filed !ith the CTA !ithin -, da(s from the receipt of the C&'/s decision den(ing the administrative claim or from the expiration of the 12,*da( period !ithout an( action from the C&'+ #0$ All taxpa(ers ho!ever can rel( on 1&' 'uling 2o+ 3A*049*,- from the time of its issuance on 1, 3ecem%er 2,,up to its reversal %( this Court in Aichi on 5 6cto%er 2,1, as an exception to the mandator( and .urisdictional 12,7-, da( periods+

2ational &nternal 'evenue Code8 value added tax8 prescriptive period for filing a tax refund or credit of input value* added tax+ The rules on the determination of the prescriptive period for filing a tax refund or credit of unutilized input value*added tax #VAT$ as provided in Section 112 of the 1997 Tax Code are as follo!s" #1$ An administrative claim must %e filed !ith the Commissioner of &nternal 'evenue #C&'$ !ithin t!o (ears after the close of the taxa%le )uarter !hen the zero*rated or effectivel( zero*rated sales !ere made+ #2$ The C&' has 12, da(s from the date of su%mission of complete documents in support of the administrative claim !ithin !hich to decide !hether to grant a refund or issue a tax credit certificate+ The 12,*da( period ma( extend %e(ond the t!o*(ear period from the filing of the administrative claim if the claim is filed in the later part of the t!o* (ear period+ &f the 12,*da( period expires !ithout an( decision from the C&' then the administrative claim ma( %e considered to %e denied %( inaction+ #-$ A .udicial claim must %e filed !ith the Court of Tax Appeals #CTA$ !ithin -, da(s from the receipt of the C&'/s decision den(ing the administrative claim or from the expiration of the 12,*da( period !ithout an( action from the C&'+ #0$ All taxpa(ers ho!ever can rel( on 1ureau of &nternal 'evenue 'uling 2o+ 3A*049*,- !hich expressl( states that the 9taxpa(er*claimant need not !ait for the lapse of the 12,*da( period %efore it could see: .udicial relief !ith the CTA %( !a( of ;etition for 'evie! < from the time of its issuance on 1, 3ecem%er 2,,- up to its reversal %( the Court in CIR vs. Aichi Forging Company of Asia on 5 6cto%er 2,1, as an exception to the mandator( and .urisdictional 12,7-, da( periods+Mindanao II eothermal !artnership vs. Commissioner of Internal Revenue"Mindanao I eothermal !artnership vs. Commissioner of Internal Revenue. =+'+ 2o+ 19--,1 > =+'+ 2o+ 1905-7+ ?arch 11 2,1-+ 2ational &nternal 'evenue Code8 value*added tax8 isolated transactions+ Taxpa(er/s sale of the 2issan ;atrol is said to %e an isolated transaction+ @o!ever it does not follo! that an isolated transaction cannot %e an incidental transaction for purposes of value*added tax #VAT$ lia%ilit(+ Section 1,A of the 2ational &nternal 'evenue Code of 1997 !ould sho! that a transaction 9in the course of trade or %usiness< includes 9transactions incidental thereto+< Taxpa(er/s %usiness is to convert the steam supplied to it %( ;26C*B3C into electricit( and to deliver the electricit( to 2ational ;o!er Corporation+ &n the course of its %usiness taxpa(er %ought and eventuall( sold a 2issan ;atrol+ ;rior to the sale the 2issan ;atrol !as part of taxpa(er/s propert( plant and e)uipment+ Therefore the sale of the 2issan ;atrol is an incidental transaction made in the course of taxpa(er/s %usiness !hich should %e lia%le for VAT+ Mindanao II eothermal !artnership vs. Commissioner of Internal Revenue"Mindanao I eothermal !artnership vs. Commissioner of Internal Revenue. =+'+ 2o+ 19--,1 > =+'+ 2o+ 1905-7+ ?arch 11 2,1-+

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