RAHMA S.

CHIO JD-3 TAXATION LAW II

20100841

1. Read CTA Case No. 8789 and outline the remedial route the case has taken

 October 29, 2013, November 4, 2013, and December 18, 2013 - FCF
MINERALS CORPORATION (Petitioner) submitted five (5) Letters of Protest
to the District Collector of Customs of the Port of Manila along the said dates.

 January 3, 2014 - The District Collector of Customs of the Port of Manila issued
a Decision denying the petitioner's protests on the basis of the Revenue
Memorandum Circular (RMC) No. 17-2013 which the Commissioner of Internal
Revenue (CIR) issued on February 15, 2013,

 January 20, 2014 - the petitioner filed a Notice of Appeal with the District
Collector of Customs of the Port of Manila.

In the 1st Indorsement dated January 28, 2014, the District Collector of Customs
of the Port of Manila endorsed the case folder in light of the Notice of Appeal
filed by the petitioner

 February 4, 2014, the petitioner filed its Position Paper

 March 28, 2014 - Considering the lapse of thirty (30) days from February 27,
2014, without the petitioner receiving the Decision of the Commissioner of
Customs (respondent), the petitioner filed its Petition for Review before this Court

 April 1, 2014, the respondent rendered a Decision affirming the January 3, 2014
Decision of the District Collector of Customs of the Port of Manila.

 April 15, 2014 - Petitioner filed a Supplemental Petition for Review before this
Court

 June 5, 2014 - Respondent filed his Answer

 July 9, 2014 - Petitioner also filed its Reply to the Answer of respondent
reiterating that the CIR has no authority to interpret the provisions of the
Philippine Mining Act and that the Commissioner of Customs erred in relying on
the interpretations of the CIR.

 July 24, 2014 - the respective counsels of the parties appeared during the pre-trial
conference held after the submission of the parties' respective Pre-Trial Briefs,

 August 4, 2014, the parties filed their Joint Stipulation of Facts and Issues.

 September 3, 2014 - Thereafter, a Pre-Trial Order was issued by the Court

 After the presentation, marking, identification, and offer, the Court admitted Exhibits
"P-1" to "P-22-A" as part of the petitioner's documentary evidence. On the other hand,
the respondent filed his "Manifestation and Motion (In Lieu of Comment)", stating
that the respondent will no longer be presenting any witness as the present case
involves only questions of law.

 July 20, 2015 - Respondent filed its Memorandum

 July 24, 2015 - Petitioner submitted its Memorandum

 July 28, 2015 - the case was declared and submitted for decision o

 June 21, 2016 - The court issued the promulgated decision - WHEREFORE, the
instant Petition for Review is hereby DENIED for lack of merit.

2. When can a taxpayer appeal to the CTA?

After the taxpayer has exhausted all administrative remedies available to him, the
taxpayer can now seek judicial relief by filing an appeal to the CTA. As provided in
Revenue Regulations No. 18- 2013, an appeal may be filed to the CTA in the following
instances:

a. In case of denial of the protest, in whole or in part, by the Commissioner's duly

authorized representative, appeal to the CTA within thirty (30) days from date of
receipt of the said decision;

b. In case the protest is not acted upon or in case of inaction by the Commissioner's duly
authorized representative within one hundred eighty (180) days, appeal to the CTA
within thirty (30) days after the expiration of the one hundred eighty (180)-day
period;

c. If the protest or administrative appeal, as the case may be, is denied, in whole or in
part, by the Commissioner, the taxpayer may appeal to the CTA within thirty (30)
days from date of receipt of the said decision; and

d. If the protest or administrative appeal is not acted or in case of inaction upon by the
Commissioner within one hundred eighty (180) days counted from the date of filing
of the protest, the taxpayer may appeal to the CTA within thirty (30) days from after
the expiration of the 180-day period.

The appeal must be filed before the CTA Division.

3. What rules should apply to importation VAT Protest?

The following rules should apply to Importation VAT Protest:

A. Department of Finance - Bureau of Customs’ CUSTOM ADMINISTRATIVE

ORDER (CAO) NO. 02-2020; Subject: DISPUTE SETTLEMENT AND
PROTEST. Specifically, Section 10 of the said order.
 Section 10. Protest.

10.1. The aggrieved importer or exporter or any stakeholder directly affected by the
adverse ruling of the District Collector in all Protestable Cases arising from tariff
classification, valuation, rules of origin or other customs issues, may appeal by way of
protest in writing to the Commissioner within fifteen (15) days from receipt of the
adverse ruling of the District Collector or, when payment is made as a result of the
adverse ruling, within fifteen (15) days from such payment. Otherwise, the action of
the District Collector shall be final and conclusive.

10.2. A protest filed shall specify the particular ruling of the District Collector for
which protest is being made, and shall indicate the particular ground or grounds upon
which the protesting party bases the claim for relief. The scope of a protest shall be
limited to the particular goods subject of a goods declaration, but any number of
issues may be raised in a protest with reference to the goods declaration constituting
the subject matter of the protest.

10.3. When a protest is filed in proper form, the Commissioner shall render a ruling
within thirty (30) days from receipt of the protest. Otherwise, the ruling of the
Collector shall be deemed affirmed if the Commissioner fails to act on the same.

B. REPUBLIC ACT NO. 9337; AN ACT AMENDING SECTIONS 27, 28, 34, 106,
107, 108, 109, 110, 111, 112, 113, 114, 116, 117, 119, 121, 148, 151, 236, 237 AND
288 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED,
AND FOR OTHER PURPOSES. Specifically,

SEC. 5. Section 107 of the same Code, as amended, is hereby further amended to read
as follows:

"SEC. 107. Value-Added Tax on Importation of Goods. -

"(A) In General. - There shall be levied, assessed and collected on every importation
of goods a value-added tax equivalent to ten percent (10%) based on the total value
used by the Bureau of Customs in determining tariff and customs duties, plus customs
duties, excise taxes, if any, and other charges, such tax to be paid by the importer prior
to the release of such goods from customs custody: Provided, That where the customs
duties are determined on the basis of the quantity or volume of the goods, the value-
added tax shall be based on the landed cost plus excise taxes, if any: Provided, further,
That the President, upon the recommendation of the Secretary of Finance, shall,
effective January 1, 2006, raise the rate of value-added tax to twelve percent (12%),
after any of the following conditions has been satisfied:

"(i) Value-added tax collection as a percentage of Gross Domestic Product (GDP) of

the previous year exceeds two and four-fifth percent (2 4/5%); or

"(ii) National government deficit as a percentage of GDP of the previous year exceeds
one and one-half percent (1 1/2%).
"(B) Transfer of Goods by Tax-exempt Persons. - In the case of tax free
importation of goods into the Philippines by persons, entities or agencies exempt from
tax where such goods are subsequently sold, transferred or exchanged in the
Philippines to non-exempt persons or entities, the purchasers, transferees or recipients
shall be considered the importers thereof, who shall be liable for any internal revenue
tax on such importation. The tax due on such importation shall constitute a lien on the
goods superior to all charges or liens on the goods, irrespective of the possessor
thereof."