COMMISSIONER OF INTERNAL REVENUE v.

PRIMETOWN PROPERTY GROUP,

INC.
G.R. No. 162155 August 28, 2007

FACTS:

On April 14, 1998 Primetown Property Group. Inc. filed its final adjusted return. On March 11,
1999 Gilbert Yap, vice chair of Primetown Property Group. Inc., filed for the refund or tax credit
of income tax paid in 1997. However, it was not acted upon. Thus Primetown filed a petition for
review but the Court of Tax Appeals dismissed it claiming that it was filed beyond the two-year
reglementary period provided by section 229 of the National Internal Revenue Code. The Court
of Tax Appeals further argued that in National Marketing Corp. v. Tecson the Supreme Court
ruled that a year is equal to 365 days regardless of whether it is a regular year or a leap year.

ISSUE:

Whether or not the respondent‘s petition was filed within the two-year reglementary period.

RULING:

The Supreme Court held that the petition was filed within the two-year reglementary period
because Article 13 of the New Civil Code that provides that a year is composed of 365 years is
repealed by Executive Order 292 or the Administrative Code of the Philippines. Under
Executive Order 292, a year is composed of 12 calendar months.