26.

Marubeni Corp vs CIR (1989)

Facts: Petitioner is a foreign corporation doing business in Ph through a local branch. The local branch
applied with the Central ban for authority to remit its branch profits. After paying 15% branch remittance
tax, the branch office remitted the branch profits. The branch office was advised by its legal counsel that it
overpaid the branch remittance tax since the basis of the computation should be the amount actually
remitted and not the amount applied for. Accordingly, the branch office applied for a refund.

Issue: If you were the CIR, would you grant the claim for refund?

Ruling: Yes. The remittance tax should be computed on the amount actually remitted. In the refund of
taxes, the claim therefor can be filed within 2 years from the time of payment so long as the tax payment
was made before an assessment by the Commissioner has become final.