Investors Finance Corporation vs. Commissioner of Internal Revenue, et al.

Republic of the Fhilippines

COURT OF TAX APPEALS

Quezon City

INVESTORS FINANCE CORPORATION,

(Formerly FNCB Finance)

Petitioner,

~ versus — c.T.A. CASE NO. 3717

COMMISSIONER OF INTERNAL REVENUE,

R dent.

ee cee stolI

D F&F cesies © ao ™N

This is a claim for tax credit in the amount of

Po, 583, 901.28 representing the excess creditable

income taxes over the income tax due from petitioner

for taxable year 1981 which were deducted and withheld

by various payors from petitioner’s income.

The facts as gathered from the records of the

case are stated below;

Petitioner, Investors: Finance Corporation

formerly FNCB Finance, is a domestic corporation duly

organized and authorized to engage in the financing

business. It derives its income primarily from

financing of receivables and equipment leasing. For

taxable year ended December 31, 1981, petitioner's

annual corporate income tax return which as filed on

April Sy 13982 showed a refundable amount of

F6, 810, 254. 09, an amended return was subsequently

filed ton November 12, 1982 to show its true income and

deductions including creditable income taxes for the

-

DEC I SION .....

C. T . A. Ca s e No . 37 17

i~ --

taxahle year i n ques tion.

Th e tota l

,:\ITJOI .. m t

l' efun dable

as

a dju s t ed is P2 , 583,90 1.28 and this was arrived

at

as follol'ls;

Taxable I nco~e

Corporate lncoee Tax

p

1001000.00

X 25~

51584,438,00

X

35~

TOTAL TAX DUE

Less : Previous Year' s Ta~ Credit

!Net of TCC of P3,03915G7.94

grant~d by BIRl

A~ount of Taw Credit Available for succeeding

Ouaterly Inco•e Tax

Less : 1981 Creditable Withholding Tax

lUTIL AltUfl REF1.flDABlE

p

5,684,438.00

p

25,000.00

1,954,554.00

1, 979, 551t, 00

2, 113,627.35

1 2,449,827.93 t

!P 2,583,901.28 )

================

lln

Apr~ i-1

8, 1'383 ,

p et i"l~ ioner' t tw-ough

!JG IJ

an d

Co mpa ny

filed wi th the Bureau of Internal

claim

for tax credit i n the amount of

P2,58 3 , 90 1.28.

filed

or.

J .:TIIH.\ i;H' y 5,

1 '3SL~ in

l1 t ' Ch? 1·~ t 0

two - year

period from t he d ate cf pay me n t of

th e

ta x

within which to judicially c l aim for tax c re dit.

In its answer (p. 17-20, CTA record s ), resp on d ent

prayed

for

the dismissa l of the p e t it i on

o n,

a mong

other grounds, that it states no cause o f acti on, that

c lc.-dm

fo r refund is p ending investigation, its

r ight

·- DECI S ION -

C. T.A. Case No. 3717

7 ....

ha s

pt'esct'ibed, the a mount vJitt1held must be shown

to

have been paid to the gov ernm e nt; and burden of

proof

lies

on

the taxpayer to show that

taxes

paid

were

erroneously or illeg a lly collected.

Heari ng s of this case were repeatedly p o s tpo ned,

and

the Court res olv e d to achieve it upon

motion

of

petitioner's

c ounsel, with conformity of

respondent,

on

the ground that its claim fo r tax credit i s

still

being

administt,atively pt'oces se d in the

BIR. (p.

27,

Wh en

hearing

was

re sumed,

p e t i t i o n e t ' ' s

new

counsel

formally

offered as evidence

its

exhibits.

<Se e

li s t

on p • 55-192,

CTA,

Re spondent

interposed

no

objection except for the

purpo se

for

which they were offer ed as evidence.

Accot'dingly, the

Court

ad mitted

the

same wi thout

prejudice

to

the

.)

Court' s

evaluation

of

their

probative

valu e

and

purpose for whi c h they were offered as evidence .

submitted by the

revenue

examiner

d a ted May· 9, 1985 (p.220-221, BIR records) showed that

aft er inve s tigation, petition er has incurred on income

tax

deficiency

for the year 1981.

Of

the

aliened

credit a ble income taxes withheld for 1981 amounting to

p;;:: , 583, 901. 28,

the amount of P2 ,449,827.93

h as

been

I

applied

against the deficiency inco me tax

due

after

4 1~

-

DEC ISION -

C.T.n. Case No. 3717

-

4 -

inve s tig atio n.

In ad d ition , the amount of P134,073. 35

was

found

t o

pertain to a prior year

a nd

wa s

not

a ppt'ov ed

<BI R

Recot'ds,

page

22 ;~~) •

A

computation is sho wn below:

Net Inco1e Per Return

Add: Unallowable Deductions

Interest expense dis llowed

Taxes and licenses disallowed

Net lnco•e p@r Investigation

Inco1e Tax Due Thereon

p

100,000.00

~

25~

p 710054 1616.47

X

35~

Less: 1981 Creditable Withholding Tax

Per Return

Less: Pertaining to prior year

Deficiency Tax Per Investigation

p. 1,382,000.54

39,177.99

25, 000.00

2,451,%6.00

2, 583, 901. 28

134,073.35

p 5,684,438.00

1,421,178.59

p 7,105,616.47

2, 476,966.00

2,449,827.93

p

27,138.07

detailed

Th e

only issue for res olution of this Court

is

whether or not"pet'ti oner is entitled to a tax

credit

of P2,583,901.28 representing excess creditable fncome

taxe s for taxable year 1981.

It

is

significant

to

note

i s

that

in

the

investigation

of peti tio n et' ' s clai m fot'

tax

ct'edit ,

ther e

was instead found due from

petitione~ allege d

deficiency

income tax which respondent

automatically

set-off

against

the

amount

c l ai med

as

excess

creditable income tax.

The result was t hat petitioner

has

no

l onget~ any excess Ct'edi ta ble 'income tax but

a

defi ciency tax do..te . <Ibid.)

4 1~

.)

·- DECISION -·-

C.T.A. Case No. 37 17

·-

5

.....

The act of respondent smacks of whim or caprice .

was

arb it rar y

disallowance

of

d t?d uct i bl e

ex pen ses

to create a defi ciency tax.

No . chance

~-Jas

even

accorded

to petitioner to re bu t

the

findin g s .

element

of due proce ss wa s s or e ly

lacking.

To

free any

g over nment ~

! action from imputation of

legal

infit•mity

stJff ic:i ent

to sp 11 its doom,

t her·e

must

exist, both as a pra Pdural an d subst a nt i ve requisite ,

clue rwo r.::ess.

(£Y'Ilfita-Malate Hote l

and Motel

Operators

nssociatjon

v~ City Mayo,.~ , 20 SCR/1 8 49.)

Collection

of taxes shou ld be

made in accordance with law as any

will

negate

the

very

t' t?a so n

f Ot'

govern ment itself.

(Reyes v. 111manzor, 196 SCRI1 322.)

fixe s

and

determines

th~ tax

liability

of a taxpayer.

<Ar·anas,

Updat ed

National

I nt er··na 1

Reve nue Co d e (7th eeL

1988) p.22. )

Wi thOI..\t

an

asse ss m n-c,

ther~ is no debt from

taxpayer,

and

i s

no

obligation on his

part

which

c a n

be

enfor-ced

in a n

ction.

<Galusha v. Wendt,

U .4

Io~1a

E,(I L~ . )

According ly, respondent cannot b e

a l lowed

to

apply

the

tax

credit claim e d

a gainst

the

alleged

deficiency

tax wh ~n no asse s sme nt h as b e en made .

In

lik e manner that a

t~Hp aye r cannot r efuse to pay a tax

on

the grou nd that th~ government owes him a n

a mount

equal

to

or

greater th a n the

tax

being

collected

41J

--

DECI S ION -

C.T.A. Case No. 37 17

·-

E. --

<Francia v. Appellate Cour t, G.R. No. 76749, June

28 ,

1988)'

the

government cannot

auto ma tically

set-off

a lleged deficiency tax against a claim for tax credit.

What

is

sauce for the goo se is a l so

sauce

fot'

the

gancj et'.

To borrow the words of the Supreme Court

in

the

case

of

Collector

v. University of Sto. Tomas,

L- 1127'+,

Novembet'

c~ 8, 1958,

citing

the

t'ea s on s

non --applica ti on

of

the

doctt•ine

of

recoupment in our jurisdiction.

X>< X

X>< X

><><X

"And

thi s

not

With() IJt

it s

resu lt ing

danger,

because

a

Commissioner

of Intern a l

Revenue

to

play

sa fe an d have a

fund

ava ilable

fo r

sa id se t -of f and recoupment of

a

tax which he h a d f a il ed and

n e glect e d

to

coll~ct

may be

tempt e d

to

make

illegal

assessment

and

co ll ectio ns,

a nd

the

taxpaye r would

be

helpless

beca use

however

illega l

and

unauthorized

the assess men t

ma y

be,

the

Commi ssi oner can

always

e nforce

t h e sa m e by 1 e v y and d i s t t' .:d. n t

x x x • "

XXX XXX

XX X

equitable

Premises

considered,

We do

not

beli eve

that

t'es pond e nt

can

be

allowed

to

s et-off

alleged defi c iency tax a gainst petitioner's clai m

for

tax ct·edit.

To allow the same is fr a ught with

d a nger

a nd pl ace claimants of refund and/or tax c redit at the

~ DECISION —-

C.7.A. Case No. 3717

The task before us now is to determine whether

the requisites for entitlement toa refund are complied

with. Time and again this Court has ruled that in

claims for refund/tax credit of excess withholding

taxes petitioner-taxpayer need only prove ~° the

following:

| (1) that it filed a claim for refund within the

two (2) year period as preseribed under Gection 292

(now 230) of the National Internal Revenue Codes

(2) that the income upon which the taxes were

withheld were ineluded in the return of the recipient;

and |

(3) the fact of withholding is established by a

copy of statement (BIR Form 17431) duly issued by the

payor (withholding agent) to the payee, showing the

amount paid and the easunt of tax withheld

therefrom. :

In the case hefore us, the claim for tax credit

with the BIR and the petition for review with the

Court were seasonably filed on April 4, 1983 and _

January S, 1984, respectively. These were well within

the two-year prescriptive period within which to claim

a refund/tax credit which commences to run at the

earliest, on the date of the filing of the final tax

a een nee ames cnene ener ts mn en neath eee oe

: Sec.10, Rev. Reg. No. 6-85; see Paseo Realty & Development Corporation, (CTA Case No.

4254, March 24, 1993; Citytrust Finance Corporation v. The Comnissioner of Internal

Revenue, CTA Case No. 4134, November 11, 1991; Citytrust Finance Corporation (Foreerly

Investors Finance Corporation/FNCR Finance) v. Commissioner of Internal Revenue, CTA Case

No. 4046, February 24, 1992)

-- DECISION -

C.T.A. Ca s e No.

3 717

-

8 ·--

on

Apt' i 1

5,

1. 98;::: .

The

p e t' i o d

t h '" t

lapsed

betwe e n

th e

f i ling

a nd

c l a im s

fot'

r e fund/tax credit wa s less th a n tw o ye a rs.

As to the requirement that the income upon which

the

taxe s were withheld were in c luded in the

petitioner

presen t ed

as

documentary

eviden ct~

i. t s

Annual Corpora t e Income Tax Re turn for 1981

( Ot· i gin a 1

and

Amended) tog ether

with the supporting

schedules

to

establish

such fact.

(See E><hibits

"NE",

"NF",

"NG",

"NH", "NI ", and "NJ".)

H en t a 1 and o t h ~~ t'

income

subject to the expa nded withholding tax were noted

to

have been reported as part of th e income for the

year

undet' t•eview.

Pt· oof of withholding of taxes fat' 1981 submitted

by

petitione r

consists

of

confit·mation

t' eceipts,

wi thholding tax returns and st a tements/certifica t es of

ta x withh e ld.

This

has

in many

cases

di s mis s ed

the

allegations of counsels for respondent that the

ot h et'

t' e q u i t' e m e n t s

such as the pre s entation of

withholding

t <'I. X

t' e t u t'n s, offici a 1 t' e c t;! i pt s s h o ~·~in g t' em itt an c e

of

taxes

withheld

by

the

withholding

agent

and

verification by revenue enforcement officer have to be

pt' e sent ed

I

( c i t y t t'l..l s t

before the issuance of

tax

Finance

Corporation

v.

c t' e d i t It• e f u n d •

C o m m i s s i o n e t'

o f

~ DECISION -

c.T.A. Case No. 3717

Internal Revenue, CTA Case No. 4046, February 2,

1993; The Philippine American Life Insurance Company

v. Commissioner of Internal Revenue, CTA Case No.

4018, November S&S, 19915 A. Soriano Corporation v.

_ Commissioner of Internal Revenue, CTA Case No. 4201,

August 7, 1991; Commonwealth Pacific Consultants Ltd.

v. Commissioner of Internal Revenue, CTA Case No.

2953, May 15, 1982; Ateneo De Manila v. Commissioner

of Internal Revenue, CTA Case No. S213, July 28,

1989.)

ExHibits A to Z, inclusive as well as Exhibits

AA to FPR, inclusive were not considered by the Court

since these exhibits pertain to creditable income

taxes deducted, withheld and remitted by Investors

Finance Corporation as a withholding agent.

Withholding taxes are it taxes due from the

withholding agent. They are income tax due from the

recipients of the income payment and creditable

against the income tax due them. The taxes deducted

and withheld by the withholding agent are held as

special fund in trust for the government until paid to

the collecting officer. (Aranas, Updated National

Internal Revenue ” Code (7th ed.1988) Di 437.)

Petitioner cannot claim them as its own creditable

!

Ta)

-

DECISION --

C.T.A. Case No. 37 17

-

to ··-

i n come

taxes

~tJh i ch

a pply

C:\l]ai n st

its

t ax

liabil ity.

Exhib its SS to ZZ, inclusive; Exhi b its AB to AZ,

inclusive;

Exhibits BA to BZ, inclusive and

Exhi bit s

CA to CF, inclu s iye were also disregarded by the Cour t

since

th e

receipts

were

i 11

the

of

individual s and nothing in the said rece ipts

indi cate

that

th e

amount

for'

the

account

of

petitioner'.

Exhibit CG is like wi se ignored for b eing a

lett er o f receipts purportedly

to

payment

of taxes withheld .

To tal< e up

the

same

would

also

n·~sul

·l;

in

double

ctntnt in g

si nce

th e

referr~d therei n form part o f

the

evide n ce

prese nted in support of the claimed creditable

income

t C:\){ .

Exhibits FG to FZ , incl usive as wel l as Exhibits

GA

to

G~,

inclusive do not indi cate

th e

y e ;:::~t'

the

income subjected to wit hholding wa s earned .

is

no

way

to

determine

evidence

pt'ese nt ed

whet h er'

the

taxes withheld pertain

to

petition et'' s

198 1 income h e nce, they were d isall owed.

Only

the

followin[~

e><hibi t s

wer'e

found

to

substanti ate

petitioner ' s claim of cred itabl e

income

taxes withh e ld by various payors, to wit:

4

'1

r..:.. • i:

···-

DECT '3 IfJtl ····

C.T. n. Case? f'.IIJ.

3 7l7

--

l1 ···-

Exhibit

Withholding ~

In!! of Inco1e

A1ount

Tax Withheld

CG1-a & b

Carter Marketing, Inc.

Lease Rental

p

21, 8'33.85

p

1, 094.70

CG2-a & b

Carter Marketing Phils. Inc.

Lease Rent 1

21, 8':!3. 85

1, 0'34. 70

CG3-a & b

- do -

Lease Rental

21,8'33.85

1,094. 70

CG4-a & b

- do -

LP.ase Rental

20,558. 25

I, 027.91

CG5-a & b

- do -

Lease Rental

20,558.25

1, 027. 91

CG6-a & b

- do -

Lease Rental

20,558.25

1,027.'31

CG7-a & b

- do -

Lease Rental

20,558.25

1, 027.91

CG8-a & b

Carter Int'l. Corp.

Lease Rental

20, 558.25

1, 027. 90

CG9-a & b

- do -

Lease Rental

20,558.25

1,027.91

CGIO-a & b

- do -

Lease Rental

13,110.55

'355.52

CG11-a & b

- do -

Lease Rental

19,110.55

955.52

CG!2-a & b

- do -

Lease Rental

13, 110.55

'355.52

CH

A. H. Robins (Phi 1. l Co., Inc,

Cat' Rental

111,812. 01

5,410. 77

CI

- do -

Ci!t' Rental

1llt,9 7.01

5, 71t5, 84

CJ

- do -

Car Rental

%,€.42. 18

4, 832. 11

CK

- do -

Car Rental

1 !'t, 230.6

5, 711.53

CL

ASEA !Phi ls.) Inc.

Lease

95,042.01

4.752.10

CM

Autosphet·e, Inc.

Car Rental

26,3'30.00

1, 31'3.50

CN

- do -

Car Rental

10,556.00

527.80

co

Cartel' Mat•ket ing Phils.Inc.

Lease Rental

6, 71't.00

335. 70

CP

- do -

Lease ental

7, 285.40

36'3.27

co

- do -

Lease Rental

65,691. 55

3,284.10

CR

- do -

Leas R ntal

3,0'38. '31

454.95

cs

- do -

Lease Rental

·~, 693. BO

234. %

CT

- do -

LPn

R n 1

4,':101.00

245.05

cu

- do -

Lease Rentnl

15,337. 00

766.84

cv

- do -

Lease Renhl

~,310 .55

215.52

cw

- do -

Lease R ent <~ l

4,310.55

215.52

ex

Carter Int'l. Corp.

lease Rental

3,090.00

154. 50

CY

- do -

Lease Rental

13,468.80

673.44

cz

Atla Copc:o (rh '1 s. l Inc.

Rental

1,012,828.99

50,641.43

Dl1

A• lg a~a gd CreJeri es Corp.

Rental

15,406.20

770.35

DB

Beta C e ita! Supply

Rental

121617. iO

630.90

DC

~ do -

Rental

25,235,110

1, 251. 80

DE

Black & Decker Phils. Inc.

Rental

4,192.50

209.64

DF

- do -

Rental

LtO, 2G5. 00

2,018.28

DG

Citibank N.A.

EWT (sic)

55 ,650.00

28,432.50

DH

- do -

[l.IT (sit)

568,650.00

28,432.50

DI

- do -

Rent<~!

568,650.00

28, 432.50

OJ

- do -

EWT (sic)

8,400.00

420.00

DK

- do -

EWT (sic)

8,400.00

420.00

DL

- do -

Rental

8,400.00

420. 00

DM

- do -

EWT (sic)

8,400.00

420.00

DN

- do -

EWT (sic)

8,400.00

420.00

DO

- do -

WT (sic)

8, 400.00

420.00

DP

- do -

Rental

8,400.00

420.,00

DO

- do -

EWT (sicl

8,400.00

420.00

DR

- do -

Rental

8,400.00

420.00

_,

4r..:d

/~

-

DECISION -·

C.T.A. Ca s e No . 3717

.)

-·

li~ -

Exhibit

Withholding 8Y!ni

1m of Inco1e

A1ount

Tax Withheld

OS

- do -

HIT (sicl

p

17,7'3?.33

p

88'3.'37

DT

- do -

EWT (sicl

17, 7'33. 33

88'3.'37

DU

Cherry Foodal'a!a

Rental

405, 3'31. ~8

20,26'3.56

DV CDCP

Rental

535,324.80

26,766. 24

ow

Cooper Laboratories(Phil.llnc.

Rental

208,058.40

10,402.'34

ox

Concrete Aggregates Corp.

Rental

4,'358.55

248.42

DY

- do -

Rental

4,963.56

248.42

DZ

- do -

Rental

5'3,522. 72

2, '381. 04

EA

- do -

Rental

4,953.55

2't8. lt2

EB

- do -

Rental

4, '3S8.56

2'•8. '•2

EC

- do -

Rental

4,%8.55

248.42

ED

- do -

Rental

4,'368.55

248.42

EF

Cu~ ins Diesel Sales &

Rental

8'3,395.80

4,4459.79

Service Corp.

EG

Cu eins Diesel Sale Service

Rental

128,602.40

5, 430.12

Corp of the Phil.

EH

- do -

Rental

89, 395.80

4,459. 79

EI

Endo Laboratodes (Ph il.llnc.

Car Rental

83, 61t3. '34

4,182. 22

EJ

Fire1an1 s Fund Insurance Co.

Lease

2'•2, 581.38

12, 12'3. Of.

EK

- do -

Lease

'308, 37'•· 40

45,418.72

EL

Fabar Sales, Inc.

qental

22,530.72

1,129.53

EM

- do -

Rental

22,5'30.72

1,12'3. 53

EN

- do -

Rental

90,362. 08

4,518. 08

EO

First Che ic~l Sales Corp.

Rental

7,228.50

351 .Lt4

EP

- do -

Rental

7,228.50

351.44

m

- do -

Rental

7, 228. 50

351.44

ER

- do -

Rental

7, 228.50

351.411

ES

DCCD Engineering Corp.

. Rental

15,954.60

7'37.74

ET

First Worldwide Marketing Corp.

Eqpt Rental

19,718.64

985.92

EU

Gilbara Australia Ltd.

Rental

42,997.46

2,111'3. 87

EV

- do -

Rental

12,445.52

2,120.45

EW

- do -

Rental

28,8&7.62

1,443.37

EX

Group Deve 1 opers, Inc.

Rental

95,818. 00

4, 790.90

EY

- do -

Rental

'377,442. 60

48,872.13

EZ

Fuji-Haya Electric Corp. Phils.

Lease Rental

217,342. 7(;

10,857.07

FA

Industrial Offset Press

Rental

27,270.00

1,363.50

FB

- do -

Rental

27,270.00

1,363.50

FC

- do -

Rental

54,540. 00

2,727.00

FD

Inland Enterprises Co.

Rental

54, 068.53

3,077.47

FE

Integral Che•ical Corp.

Rental

84,0€,0. 16

4,202.'37

GX

Luzon Stevedoring Corp.

Lease Rental

524,924.72

30,853.80

GY

Lorenzo Shipping Corp.

Rental

9'34,532.00

4'3,725.60

GZ

Mars1an & Co., Inc.

Rent

1,093,939.5'3

54,5%.98

HA

Phil. Acetylene Co. , Inc.

Rental

21, 027. 00

1,051.35

HB

- do -

Rental

7,009. 00

350.45

HC I

- do -

Rental

28,035.00

1,401.80

HD

Pelican, Inc.

Rent

1&5,917. 48

8,734.56

;<

.J

4r.i,u .

_I

[' ECTDI OI' I ·--

C.T. n . Ca se

N ~. 37 17

···-

1. 3

·-

Exhibit

Withhnlding Aq~nt

!..Y.I!! nf lncoll!

Anunt

Tax Withheld

H~

Phi I. P '1 inu111

~!h ee ls , Inc.

Rentals

p

10, 201.90

p

510.09

HF

Philips El ectrical La ps,Inc.

Rental

17'•, 75'1.32

8,737.58

HG

Ravecar, Inc.

Lease

102, 891.75

5, 1114.54

HI

Redson Textile Mfg. Corp.

Rental

63,831. 28

3,191. 50

HJ

Ruby Industrial Corp.

Rental

739, 302.85

36,965.10

HK

Rhone-Poulenc Phil. Inc.

Rental

93,893.88

4,6'34.70

HL

- do -

Rentc>l

104, 085.49

5,204.28

HM

- do -

Rental

104, 085. 48

5, 204.28

HN

- do -

Rental

104,085. 48

5,204. 28

HO

Leonardo T. Sanchez

Rental

7,'350.15

3'37.50

HP

- do -

Rental

7,'350. 15

397.50

HQ

- do -

Rental

7,950. 15

3'37.50

HR

- do -

Rental

7,950. 15

397.50

HS

Sterling Product Int'l.

Rental

34, 71t3. 15

1,737.00

HT

- do -

Rental

42,553. 07

2,129. 00

HU

- do -

R!>nt a 1

4'3,749.21

2, 1188.00

HV

- do -

Rental

55,662.85

2, 783.00

HW

- do -

R~ntal

55,662.85

2,783. 00

HX

Standard Electric Mfg.Corp.

Rental

565,249.80

28, 262.64

HY

Sulpicio Lines, Inc.

Rental

1,, GB't, 0'35. 00

251,052.75

HZ

Sweet Lines, Inc.

Rental

15'3,310.80

7, 955. 97

IA

Transport Contractors, Inc.

Rental

21 ,384. 00

1, 05'3.20

IB

- do -

Rental

29,512.00

1,425.60

IC

.: do -

Rental

29,5!1t.lt0

1, 425.72

ID

Union Carbide Phils. Inc.

Rental

23,127.00

1,156.35

IE

- do -

R2ntal

23,127.00

1,155. 35

IF

- do -

Rental

23,127. 0')

1,156.35

IG

- do -

R~nta l

14,439.60

721.98

IH

Univ. Physician's Serv. Inc.

Rent

35, 5~

1~1. 00

1, 775.00

IJ

- do -

Re11t

B5,'W!. OO

4,31 7. 20

IK

- do -

Rent

3 Hi, 000. W'

15, 8Lt0. 00

IL

- do -

Rent

310,900.00

15, 540.00

IM

USV!Phil. l Phart. Corp.

Cat' Rental

42,'328. 68

2, 1116.44

IN

- do -

Car R~nta l

42,'328.68

2, 1lt6. 44

10

- do -

Cat' Rental

42,928.68

2, 1'•5. 44

IP

.USV !Phil. l Phar1. Corp.

Car Rental

42, '328.68

2,1 46. 44

IQ

Warner Barnes

Car Rental

1,137.10

56.85

IR

- do -

Rental

1,137.10

56.85

IS

- do -

Car Rental

1,137.10

55.85

IT

- do -

Car Rental

1,137.1<)

56.85

IU

- do -

Car Rental

1,137.10

56.95

IV

- do -

Car Rental

1,137.10

56.85

IW

- do -

Rental

1,137. 10

55.85

IX

- do -

Rental

1, I 37. 10

56.85

IY 1

Warner-La .bert Phils. Inc.

Contractor

15,188.04

75g,4o

4~

,

A

··· or::c :u.n oN

....

C.T.n. Ca s e No. 37 17

..•

11.1 . . ..

Exhibit

Withholding Agent

~of Incou

Atount

Tax Withheld

JZ

- do -

Contradot·

p

l B, '377. 16

p

948.86

JA

- do -

Contractor

12,112.58

605.63

JB

- do -

Contractor

23, 48 ~1 . 27

1,174.01

JC

- do -

Cvntractor

12, '323. '•0

61t6.17

JD

- do -

Cont r ~ctor

13,8'32.'35

66'3.65

JE

- do -

Contractor

'16, 277.78

2,313.8'3

JF

- do -

Contractor

49,796.62

2,489.83

JG

- do -

Contractor

46,277.78

2,313.8'3

JH

- do -

Co tractor

4'3, 7'36.62

2,489.83

JI

- do -

Contractor

45,181.8'3

2,25'3.0'3

JK

- do -

Contractor

45, 181.8'3

2, 259.09

JL

- do -

Rental

48,52'3.35

2,426.47

JM

- do -

Rental

41,168.79

2,058.44

JN

- do -

Rental

47,56'3 . 1!~

2,378.47

JO

- do -

Rental

45,60'3.93

2, 280.50

JP

- do -

Rental

30, 9'33.ft5

1,54'3.68

JQ

- do -

Rental

40,635.06

2, 031.75

JR

- do -

Rental

30,'3'33.45

1,54'3.67

JS

- do -

Rental

39,088.91

1,954.45

JT

- do -

Le :e

'•8,52'3. 35

2,426.47

JU

Warn~r-Lallber Phils. Inc.

Lease

45, 181. 8'3

2,25'3.09

JV

- do -

Contractor

'•5, 181.8'3

2,25'3.09

JW

- do -

Contractor

'•8, :~ 9. 35

2, 't ~6. 47

JX

- do -

Rental

30, 9'33. '15

1' 5'1'3. 67

JY

- do -

Contractor

'•3, 7'36. 62

2,48'3.83

JZ

- do -

R ~ntal

4'3, 7%.62

2,48'3.83

KA

- do -

Rental

1,02'3,506.36

51,575.32

KB

Wellcolle !Phils. l Inc.

Car Rental

113, 0211, 34

5,651.21

KC

· - do -

Cat· Rental

125,4 8.56

6,272.43

1\D

- do -

Car Rental

53,525.'12

2,676.27

KE

- do -

Car Rental

2'31, '398.42

14,5'39.91

KF

Winthrop Steat·ns, Inc.

Rental

240, '3't3. 65

12,047.17

KG

- do -

Rental

230,106.25

11, 50( 73

KH

- do -

Rent t~l

160,8'35.82

8, 044.25

J

KI

- do -

Rental

1 151 4ZO. Bit

5, 770.00

KJ

Yu Eng Kao Electrical

Lease Rental

111, '31t3. 23

5,5'37.31

Supp 1 y & Hard~Jare

KL

Drilling Corp. of Asia

Rental

31,950.00

1,598. 00

KM

Neltex Dev. Co., Inc.

Rental

51,750.00

2,587.50

KN

RLM & Co.

Rental

12,419.06

516.60

KO

Dia. ond Motor Corp.

Contr ilr.t or

2,881.00

10.2&

KP

Econo1i line Offic~ Eqpt Sales

Lt>asing

2,709.00

135.45

in L~ase Corp.

KQ

Eft·en V. Garcia

Car Rt>ntal

3'1,090.2'3

1, 704.02

~R:

Int' 1. Eood Housekeeping,

I~c .

Rental

22,500.00

1,125. 00

KS

Lafu111ar Marketing Corp. ·

Appraisal fee

1,669.50

166.95

4r-;.; ~

~

- DECISION ~

C.T. A

Exhibit

SA A SABBN

Clase No. 3717

Withholding fgent

Proguatic Dev. & Const. Corp.

Phil. Cocoa Corp.

Technolux Marketing Inc.

State Investment House, Inc.

PoCP

Quality Solid Industrial Corp.

Sta. Clara Estate, Inc,

Lacson Hersanos Agro-Industrial

Corp.

Menchaca Hersanos

Nenaco Sales Corp,

Jon, Lopez & Co. CPA's

Integrated Stevedoring,

frrastre Corp.

do ~

Dinglasan Law Office

Perla Compania de Seguros, Inc.

-do-

~do-

~do-

- do -

~do-

-do-

~ do -

World-Wide Ins, & Surety Co. Inc.

~do-

- do -

-~do-

Mrs. Yolanda A. Kilayeo

Fortune Insurance & Surety Co. Inc.

Manila Banking Corp,

Isasco Arrastre & Stevedoring

Co., Inc.

Gold City Integrated Port

Service, Inc.

-do-

Bagonbon Faras, Inc.

Elenita Agri.Dev. Corp.

Home Financing Corp.

Global Electrification Systen,

Inc.

C.B.Lopez Mngt & Consultant

Engineering

Min. of Trade & Industry

Sandvik Phils. Inc.

Mandaue Warehousing Corp.

Type of Incose

Rental

Rental

Rental

Rental

Rental

Rental

Rental

Rental

Lease

Rental

Rental

Eqpt. Rental

Eqpt. Rental

Rental

Insurance

Coneissions

Commissions

Commissions

Commissions

Commissions

Commissions

Commissions

Commission

Comeission

. Commission

Wage (sic)

Allowance (sic)

Interest

Rental

Rental

Rental

Lease-eqnt.

Rental

Rental

Rent

Rental

Wages {sic)

Rental

Pp

Faount

2,521.00

365, 053. 52

5, 883, 00

2,500, 09

24, 830, 00

119,049.00

32, 946,00

511,501, 46

211, 594.00

36, 084, 40

7,200.00

410, 400.00

68, 490.00

8, 400.00

14,280, 75

215,914.97

60,371.45

60,371.45

42,746. 10

86, 835, 49

3,227. 40

13, 134. 74

33, 392. 66

2, 169.28

23,076.00

67,912, 00

540, 494.00

1,042, 997.03

682, 726.22

261, 886.23

318,679.92

96, 244.65

24, 300, 00

8, 946. 00

2,342, 42

8, 736.00

Pp

Tax Withheld

126. 05

18, 292. 61

24.15

125.00

1,241.25

5, 982, 00

1,647.24

25,575.05

10,579.20

1,804.22

360.00

20,520. 00

3, 429. 00

420,00

714.03

10, 795, 75

3,018.57

3,018.57

2, 137.30

4, 341.77

414,62

166, 37

1, 468. 04

656. 71

1,669. 66

108. 47

1,453. 80

109.13

10, 186. 80

34, 986, 30

52, 145.35

34, 186.81

13, 889.74

15,933. 9

23, 106.00

4, 812. 26

1,215.00

447.30

117. 12

436, 80

~ DECISION -

C.T.A. Case Ho. 3717

Exhibit Withholding Agent Type of Incoee Asount Tax Withheld

MI Norkis Int'l. Co. Ine. Rental BP 24,394, 26 P 1,219.20

MJ Norkis Trading Co., Inc. Rental 314,501.17 15, 725.09

MK First Phil. Insurance Co. Inc. Coaeission 107, 700.79 5, 385. 04

EL Lilo-An Repair Shop, Inc. Rental 112, 603,00 5,630.15

MN Gelac Trading, Inc. Rent 128, 929. 93 6, 446. 46

MO INTERBANK Rent 110, 250. 90 5,512. 50

MP Phil. Index Traders Rent 4, 394. 00 219. 70

Mo Hersinigildo Trinidad Rent 60, 248, 80 3,012. 44

MR Aveco Eqpt. Corp, Rental 41,969.75 $98.49

MS - do - Rental 11,963.75 598.49

KT -do- Rental 41,969.75 598. 49

MU ~ do - Rental 14,969.75 538. 49

MY ~ de - Rental 11,959.75 £98.49

MW ~ do - Rental 11,969.75 598. 49

MX ~do- Rental 11,969.75 598. 49

MY Mondragon Industries, Inc. Rental 1,461,958, 65 73,997.90

MZ Congar Chemical Corp. Rental 195, 127.40 9, 756. 32

NA Phil. Rock Products Inc. Eqpt, Lease 507,199.57 25, 309. 98

NB - do - Eqpt. Lease 488, 137.80 24, 406, 89

RC Gerardo D. Cunanan, M.D. = - 120. 44

aa Howe Financing Corp. - 7 8,316.00 -

RR - do - - - 4, 158. 00

TOTAL 1, 6%, 151.05

The 1981 creditable income taxes withheld by

various payors from petitioner per amended annual

income tax return amount to Fe, 449,827.93, of which

Fl,696,151.05 only were found to be allowable based on

the evidence offered.

Petitioner has also failed to present any

evidence in support of the previous

Claimed amounting to Pe, 115,627. 35

annual income tax return. For this

is left with no recourse but to bar

year’s tax credits

per amended 1981

the Court

,

L

reason,

the same.

~ DECISION -

C.T.A. Case No. 3717

Accordingly, we compute the resulting claim for

tax credit as follows:

Taxable Incowe P_ 5,684, 438. 00

Corporate Incose Tax

P 100,000 x 29% P 25, 000. 00

P 5,584,438.00 » 35% 1,954, 594. 00

Total Tax Due P 1,979,554. 00

Less : 1981 Withholding tax credits

per evidence offered 1,696, 151.05

TOTAL AMOUNT DUE P 283, 402. 95

WHEREFORE, the Court denies petitioner’s claim

for tax credit. The instant petition for review is

hereby dismissed for lack of merit.

SO ORDERED.

Quezon City, Metro Manila, May 10, 1993.

ANUEL|K.

Associay

GRUBA

Judge

WE CONCUR:

Q) Ada Pn

ERNESTO D. ACOSTA

“residing Judge

‘ »

/ RAMON O. DE VEYRA

Associate Julfge

-

-