tax remedies 2015.page2

7/23/2019 Tax Remedies 2015.Page2

http://slidepdf.com/reader/full/tax-remedies-2015page2 1/3

INCOME TAX REFUND (Sec. 229 NIRC)

SECTION 229. Recovery of Tax Erroneously or Illegally Collected. - No suit or proceeding shall be maintained in

any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or

illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum

alleged to have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been

duly filed with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax,

penalty, or sum has been paid under protest or duress.

"In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of

payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided,

however, That the Commissioner may, even without a written claim therefor, refund or credit any tax, where on

the face of the return upon which payment was made, such payment appears clearly to have been erroneously

paid.

National Internal Revenue Code; income tax; creditable withholding tax; refund; requisites. There are three

essential conditions for the grant of a claim for refund of creditable withholding income tax, to wit: (1) the claim is

filed with the Commissioner of Internal Revenue within the two-year period from the date of payment of the tax;

(2) it is shown on the return of the recipient that the income payment received was declared as part of the gross

income; and (3) the fact of withholding is established by a copy of a statement duly issued by the payor to thepayee showing the amount paid and the amount of the tax withheld therefrom. Commissioner of Internal Revenue

v. Team (Philippines) Operations Corporation (formerly Mirant Phils., Operation Corporation), G.R. No. 179260,

April 2, 2014.

National Internal Revenue Code; income tax; tax credit or refund; corporations; irrevocability rule. In case

the corporation is entitled to a tax credit or refund of the excess estimated quarterly income taxes paid, the excess

amount shown on its final adjustment return may be carried over and credited against the estimated quarterly

income tax liabilities for the taxable quarters of the succeeding taxable years. Once the option to carry-over and

apply the excess quarterly income tax against income tax due for the taxable quarters of the succeeding taxable

years has been made, such option shall be considered irrevocable for that taxable period and no application for

cash refund or issuance of a tax credit certificate shall be allowed therefor. Commissioner of Internal Revenue v.

Team (Philippines) Operations Corporation (formerly Mirant Phils., Operation Corporation), G.R. No. 179260, April 2, 2014.

Court of Tax Appeals; findings and conclusions of the CTA are accorded highest respect. The findings and

conclusions of the Court of Tax Appeals (CTA) are accorded the highest respect and will not be lightly set aside.

The CTA, by the very nature of its functions, is dedicated exclusively to the resolution of tax problems and has

accordingly developed an expertise on the subject unless there has been an abusive or improvident exercise of

authority. Consequently, its conclusions will not be overturned unless there has been an abuse or improvident

exercise of authority. Its findings can only be disturbed on appeal if they are not supported by substantial

evidence or there is a showing of gross error or abuse on the part of the Tax Court. In the absence of any clear

and convincing proof to the contrary, the Court must presume that the CTA rendered a decision which is valid in

every respect. Commissioner of Internal Revenue v. Team (Philippines) Operations Corporation (formerly Mirant

Phils., Operation Corporation), G.R. No. 179260, April 2, 2014.



INPUT TAX REFUND FOR UNUTILIZED INPUT TAX CREDIT ON ZERO-RATED

TRANSACTIONS (Sec 112 of NIRC)

"SECTION 112. Refunds or Tax Credits of Input Tax. -

"(A) Zero-rated or Effectively Zero-rated Sales. - Any VAT-registered person, whose sales are zero-rated oreffectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made,apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to suchsales.

National Internal Revenue Code; value-added tax; zero-rated or effectively zero-rated sales; unutilized

input value-added tax; claims for tax credit or refund; period to file appeal with the Court of Tax Appeals .

Section 112 (D) of the National Internal Revenue Code provides the Commissioner of Internal Revenue a 120-day

period from submission of complete documents in support of the administrative claim within which to act on claims

for refund/applications for issuance of the tax credit certificate. Upon denial of the claim or application, or upon

expiration of the 120-day period, the taxpayer only has 30 days within which to appeal said adverse decision or

unacted claim before the CTA, otherwise, said judicial claim shall be considered as filed out of

time. Commissioner of Internal Revenue v. Silicon Philippines, Inc. (formerly Intel Philippines Manufacturing,Inc.), G.R. No. 169778, March 12, 2014.

National Internal Revenue Code; value-added tax; unutilized input VAT; claims for tax credit or refund;

prescriptive periods. (1) An administrative claim must be filed with the Commissioner of Internal Revenue (CIR)

within two years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were

made. (2) The CIR has 120 days from the date of submission of complete documents in support of the

administrative claim within which to decide whether to grant a refund or issue a tax credit certificate. The 120-day

period may extend beyond the two-year period from the filing of the administrative claim if the claim is filed in the

later part of the two-year period. If the 120-day period expires without any decision from the CIR, then the

administrative claim may be considered to be denied by inaction. (3) A judicial claim must be filed with the Court

of Tax Appeals (CTA) within 30 days from the receipt of the CIR’s decision denying the administrative claim or

from the expiration of the 120-day period without any action from the CIR. (4) All taxpayers can rely on Bureau of

Internal Revenue Ruling No. DA-489-03 from the time of its issuance on December 10, 2003 up to its reversal by

the Court in the Aichi case on October 6, 2010, as an exception to the mandatory and jurisdictional 120+30 day

periods. Commissioner of Internal Revenue v. Silicon Philippines, Inc. (formerly Intel Philippines Manufacturing,

Inc.), G.R. No. 169778, March 12, 2014.



PROCEDURE IN CUSTOMS PROTEST CASES

APPEAL TO

SC

If the Sec. ofFinancerendersdecision

adverse to the

taxpayer, hemay still filean appeal with

the CTA.

COLLECTOR CONDUCTS HEARING

APPEAL TO THE

COMMISSIONER

AUTOMATIC REVIEW BYTHE COMMISSIONER

(The Commissioner shall render adecision within 30 days from

receipt of the records of the case.

COLLECTOR – Appraisal, Classification, Assessment &

Collection

PAY TARIFF AND DUTIES UNDER

FILE PROTEST WITH THE COLLECTOR

Payment under protest within 30 days after discharge of last

Filing of Protest with the Collector within 15 days after payment

Issuance of order of hearing within 15 days fromreceipt of protest. When the protest is in proper form,Collector shall re-examine the matter presented.

COLLECTOR SUSTAINS

PROTEST – If the Collector grants

the protest filed by the taxpayer, thedecision is adverse to the government,and hence, there will be an Automatic

Review by the Commissioner.

The records of the case shall beelevated to the Commissioner of

Customs for Automatic Review within 5days from the promulgation.

If the commissioner rendersa decision ADVERSE tothe government, there willbe an automatic Appeal.

COLLECTOR DENIES PROTEST –

If the Collector denies the protest filedby the taxpayer, the taxpayer must filea Notice of Appeal to the Collector

within 15 days from notice, copy furnishthe Commissioner.

The Collector shall transmit all therecords of the proceeding to the

Commissioner.

If the CommissionerAFFIRMS the decision ofthe Collector granting theprotest or NO DECISIONwas rendered within 30days

APPEAL TO THE

CTA

AUTOMATIC

APPEAL TO THE

SEC. OF FINANCE

AUTOMATIC

REVIEW TO THE

SEC. OF FINANCE

If the commissionerrenders a decision

adverse to theTAXPAYER, He may

appeal to the CTA within30 days

If the CommissionerREVERSED thedecision of the Collector,the Taxpayer mayappeal to the CTA within30 days.

If the decision of the Sec. of Finance is stilladverse to Government or no decision after 30

days, the decision appealed from becomesFINAL AND EXECUTORY

If the Sec. ofFinance renders

decisionadverse to thetaxpayer, he

may still file an

appeal with theCTA.

tax remedies 2015.page2

Documents