Professional Documents
Culture Documents
ENBANC
COMMISSIONER OF INTERNAL
REVENUE,
Petitioner,
-versus-
Present:
ACOSTA, P.J.,
CASTANEDA, JR.
BAUTISTA
UY
CASANOVA
PALANCA-ENRIQUEZ
FASON-VICTORINO
MINDARO-GRULLA
COTANGCO-MANALASTAS, JJ.
X---------------------------------------------------------------------
DECISION
MINDARO-GRULLA, J.:
Submitted for decision is a Petition for Review for the Court En
Sec. 2. Cases within the jurisdiction of the Court en bane.- The Court en bane shall exercise
exclusive appellate jurisdiction to review by appeal the following:
(a)
XXX
XXX
Page 2 of 16
Basic Tax
P2,421, 186.33
58,014.75
?2,479,201. 18
25% Surcharge
?605,296.58
14,503.69
?619,800.27
Total
?3,026,48291
72,518.44
P3, 099,001.35
<
Page 3 of 16
so ORDERED.
II
so ORDERED.
II
Amount
Income Tax
Value-Added Tax
Withholding Tax on Compensation
Expanded Withholding Tax
Final Withholding Tax
35,771.48
P133,787,590.14
634,659.80
5,977,242.62
Goulds Pumps (Phils.) Inc. was the petitioner while the Commissioner of Internal Revenue
(CIR) was respondent in the Division . Before the Court en bane, Gould Pumps (Phils.) Inc. is
the respondent while the Commissioner of Internal Revenue (CIR) is the petitioner.
6 1bid.
7 Joint Stipulation of Facts and Issues, Division Docket, pp. 102-103.
Page 4 of 16
Respondent
Goulds
Pumps
(Phils.)
Inc.
protested
the
8 1bid.
9 This case was thereafter re-raffled to the 3rd division pursuant to CTA Administrative Circular
No. 01-2010 "Implementing the fully Expanded Membership in the Court of Tax Appeals".
Division Docket p. 758 .
10 An Act Enhancing Revenue Administration and Collection By Granting an Amnesty On all
Unpaid Internal Revenue Taxes Imposed by the National Government For Taxable year 2005
and Prior Years.
Page 5 of 16
Amount
4 ,221 ,581 .25
634 ,659.80
5,977 ,242 .62
P1 0,833,483 .67
(
11
Page 6 of 16
12
13
14
Supra, Note 2.
Supra , Note 4.
Ibid. p.B.
Page 7 of 16
Page 8 of 16
A. Rental
Respondent assessed petitioner for deficiency EWT on rental
expenses by comparing the following:
PeriTR/GL
Alpha/is!
Difference
1s
Ibid. p 33.
Rental
P3,446,253. 00
3,397,293.49
P48,959.51
Page 9 of 16
XX
XXX
C. Local Purchases
Respondent assessed petitioner for deficiency EWT in the
amount of P33,597,430.46, representing pettlioner's local purchases
of goods/services. Petitioner explained that these purchases
represent purchases of goods and services from Goulds Pumps
(N Y.), Inc., which is a company registered with the Philippine
Economic Zone Authority (PEZA), as jointly stipulated by the parties.
As such, said supplier is exempt from creditable wtlhholding tax in
accordance with Section 2. 57. 5(2) of Revenue Regulations No. 2-98.
XXX
XXX
XXX.
Page 10 of 16
16
Page 11 of 16
Page 12 of 16
1999
for
the
remaining
P1 ,200,000.00
(P3,600,000.00
less
Page 13 of 16
In the case of
17 Commissioner of Internal Revenue vs. Smart Communications Inc., G.R. Nos. 179045-46,
August 25, 2010.
1s G.R. No. 180356, February 16, 2010.
19 G.R. No. 125704, August 28, 1998, 294 SCRA 687 , 695-696.
Page 14 of 16
Concomitantly,
Page 15 of 16
~ N. M~~ . C~
CIELITO N. MINDARO-GRULLA
Associate Justice
Revenue Regulations No. 02-98
Section 2.58. Returns and Payment of Taxes Withheld at Source.
(A) Monthly return and payment of taxes withheld at source (1) WHERE TO FILE - xxxx.
(2) WHEN TO FILE(a) The withhold ing tax return , whether creditable or final , shall be
filed and payments should be made within ten (10) days after the
end of each month except for taxes withheld for December which
shall be filed on or before January 25 of the following year.
(b) For large taxpayers, the filing of the return and the payment of tax
shall be made with in twenty five (25) days after the end of each
month .
(c) XXX .
21 Exhibit "E" and "F", pp. 136-140, Divis ion Docket.
22 Supra. Note 7.
23 "Sec. 203. Period of Limitation Upon Assessment and Collection . - Except as provided in
Section 222, internal revenue taxes shall be assessed within three (3) years after the last day
prescribed by law for the filing of the return , and no proceeding in court without assessment
for the collection of such taxes shall be begun after the expiration of such period : Provided ,
That in a case where a return is filed beyond the period prescribed by law, the three (3)-year
period shall be counted from the day the return was filed . For purposes of this Section , a
return filed before the last day prescribed by law for the filing thereof shall be considered as
filed on such last day.
2o
Page 16 of 16
DECISION
WE CONCUR:
Geo. 0--A__
ERNESTO D. ACOSTA
Presiding Justice
Q~~ c. QY-~a<a ~ .
Associate Justice
E~ UY
CAESAR A. CASANOVA
As~~~stice
~t~~
OLGA
PALANCA-ENRfau~z
Associate Justice
/./_,)- ~ 1----.-//
AME~~- .COTANGCO-MANALASTAS
Associate Justice
CERTIFICATION
Pursuant to Article VIII , Section 13 of the Constitution , it is hereby
certified that the conclusions in the above Decision were reached in
consultation among the members of the Court En Bane before the case was
assigned to the writer of the opinion of the Court En Bane.