CASE 2014-0007: COMMISSIONER OF INTERNAL REVENUE, Petitioner, – versus – MINDANAO II GEOTHERMAL PARTNERSHIP, Respondent. (G.R. No. 191498, 15 DECEMBER 2014, SERENO, CJ) SUBJECT: RULES ON  PRESCRIPTIVE PERIODS FOR CLAIMING  REFUND OR CREDIT OF INPUT VAT (BRIEF TITLE: CIR VS. MINDANAO II GEOTHERMAL)

 

DISPOSITIVE:

 

“WHEREFORE, we GRANT the Petition. The assailed Court of Tax Appeals En Banc Decision dated 11November2009 and Resolution dated 3 March 2010 of the in CTA EB Case No. 448 (CTA Case No. 7507) are hereby REVERSED and SET ASIDE. A new ruling is entered DENYING respondent’s claim for a tax refund or credit of P6,791,845.24.

 

SO ORDERED.”

 

 SUBJECTS/DOCTRINES:

 

WHAT ARE THE RULES ON  PRESCRIPTIVE PERIODS FOR CLAIMING  REFUND OR CREDIT OF INPUT VAT?

 

THESE RULES ARE:

 

A.   TWO-YEAR PRESCRIPTIVE PERIOD 

 

  1. 1.       IT IS ONLY THE ADMINISTRATIVE CLAIM THAT MUST BE FILED WITHIN THE TWO-YEAR PRESCRIPTIVE PERIOD. (AICHI)

 

  1. 2.       THE PROPER RECKONING DATE FOR THE TWO-YEAR PRESCRIPTIVE PERIOD IS THE CLOSE OF THE TAXABLE QUARTER WHEN THE RELEVANT SALES WERE MADE. (SAN ROQUE)

 

  1. 3.       THE ONLY OTHER RULE IS THE ATLAS RULING, WHICH APPLIED ONLY FROM 8 JUNE 2007 TO 12 SEPTEMBER 2008. ATLAS STATES THAT THE TWO- YEAR PRESCRIPTIVE PERIOD FOR FILING A CLAIM FOR TAX REFUND OR CREDIT OF UNUTILIZED INPUT VAT PAYMENTS SHOULD BE COUNTED FROM THE DATE OF FILING OF THE VAT RETURN AND PAYMENT OF THE TAX.  (SAN ROQUE)  

 

B.   120+30 DAY PERIOD  

 

  1. 1.       THE TAXPAYER CAN FILE AN APPEAL IN ONE OF TWO WAYS: (1) FILE THE JUDICIAL CLAIM WITHIN THIRTY DAYS AFTER THE COMMISSIONER DENIES THE CLAIM WITHIN THE 120-DAY PERIOD, OR (2) FILE THE JUDICIAL CLAIM WITHIN THIRTY DAYS FROM THE EXPIRATION OF THE 120-DAY PERIOD IF THE COMMISSIONER DOES NOT ACT WITHIN THE 120-DAY PERIOD.

 

  1. 2.       THE 30-DAY PERIOD ALWAYS APPLIES, WHETHER THERE IS A DENIAL OR INACTION ON THE PART OF THE CIR.

 

  1. 4.       AS A GENERAL RULE, THE 3 0-DAY PERIOD TO APPEAL IS BOTH MANDATORY AND JURISDICTIONAL. (AICHI AND SAN ROQUE).

 

  1. 5.          AS AN EXCEPTION TO THE GENERAL RULE, PREMATURE FILING IS ALLOWED ONLY IF FILED BETWEEN 10 DECEMBER 2003 AND 5 OCTOBER 2010, WHEN BIR RULING NO. DA-489-03 WAS STILL IN FORCE. (SAN ROQUE).

 

  1. 6.          LATE FILING IS ABSOLUTELY PROHIBITED, EVEN DURING THE TIME WHEN BIR RULING NO. DA-489-03 WAS IN FORCE. (SAN ROQUE)

 

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SCD-2014-0007-JAN 2014-MINDANAO II GEOTHERMAL