Johnson and Johnson, Inc. vs. Commissioner of Internal Revenue

DECISION

This refers to petitioner's claim for refund or tax credit, In the total amount of Two Million Four Hundred Seventy One 'Thousa.nd Nine Hundred Seventy-Nine Pesos (P2,471,979.00), as alleged erroneously or Ill ega II y collected sales tax for the calendar quarter ended December 31, 1987.

As narrated by petitioner, the following are the facts of the case.

Petitioner Is a domestic corporation engaged In the manufacture and sale of pharmaceutical and other products, one of which Is the Johnson's Baby Cologne (JBC, for brevity).

For calendar quarter ending December 31 , 1987, petitioner's total sales of Its manufactured products 610 J ,+ DECISION C.T.A. CASE NO. 4420 - 2- amounted to P188,415,118.00, Inclusive of sales tax bl I I ed separately In the Invoice amounting to P29,348,480.00, which sales were reported and the corresponding sales tax was paid to the B. I.R. Part of petitioner's sales reported for the calendar quarter ended December 31, 1987 and petitioner's sales tax paid to the B. I.R., were sales of JBC amounting to P17,092,724.00 and the corresponding sales tax thereon amounting to P2,176,218.00, computed as follows: Sales Tax Less: Tax Credit for r~w materials purchased for JBC Sales Tax Paid for Sales of JBC P2,909,320.00 73,102.00>:

P2,176,218.00 Petitioner contends that the above-mentioned amount of P2,176,218.00 is tax refundable or tax creditable, by virtue of B. I.R. Rul lng No.535-88, dated November 9, 1988, which states:

"ThIs refers to your · I etter dated September 29, 1988 requesting In behalf of your cl lent, Johnson & Johnson, confirmation of BIR Ruling No.59-81 dated March 30, 1981 which: held that your cl lent's product, Johnson's Baby Cologne, fal Is under the term· "other preparations", that as the chief Ingredient of the preparatIon Is a I coho I , a d I st I I I ed spirit, the same is subject to specific tax as such disti I led spirit, pursuant to then Section 138 of the Tax Code;

that 61.:l DECISION C.T.A. CASE NO. 4420 - 3- since the specific tax on the aforesaid alcohol has already been paid, no further specific tax is due and payable on the said product;

and that no further percentage tax is due and payable on the same product.

In reply, please be Informed that the aforesaid then Section 138 which Is the basis of the above rul lng was renumbered as Sect ion 121 (d) by P.O.

No.1994 effective January 1, 1986 and again renumbered as Section 138

(c) by Executive Order No.273 effective January 1, 1988, quoted as follows:

"(c) Medicinal preparations, flavoring extracts, and all other preparations except tol let preparations,· of which excluding water, dlstl I led spirits form the chief Ingredient, shal I be subject to the same tax as such chief Ingredient". In other words, said provision Is still In force since BIR Ruling No.59-81 was rendered up to the present.

Accordingly, as long that the present product, Johnson's Baby Cologne,· Is the same product of your cl lent having the same alcohol content, this Office hereby confirms that said rut ing Is effective and stl I I applies to Its present product.

<See also BIR Rul lng No.304-87 dated September 24, 1987)" Petitioner anchors Its claim for refund or tax credit of the amount of P2,176,218.00 not only on the above-cited rul lng but also on respondent's favorable action on Its other simi Jar claims for refund or tax credit, the most recent of which was in CTA Case No.4398, DECISION C.T.A. CASE NO. 4420 - 4- involving calendar quarter ended September 30, 1987. In this case, respondent has consistently ruled that petitioner's sales of JBC are not subject to sales tax, and granted petitioner's claim, even before this Court has rendered Its decision. In addition to the amount of P2,176,218.00, petitioner I lkewlse, claims as refundable or tax creditable, the amount of P295,761.00 representing sales tax effect of cash discounts, erroneously not deducted from the sel I lng price In computing the base of the sales tax.

Petitioner avers, such cash discounts which are agreed upon at the time of sale and Indicated In the sales Invoice, are deductible from the sel I lng price In computing the taxable base of the sales tax.

Basis of Its averment is Section 5

(b) of Revenue Regulations No.2-86, which provides: (b) Tax based on gross sales-The percentage tax on sales shal I be determined by applying the appropriate rate of tax on the gross sel I lng price or gross value In money of the articles sold, bartered, exchanged or transferred.

~ computing the taxable base, discounts may be allowed as a deduction from gross sel I lng price provlded·sald discounts are given at the time of the sale and are expressly Indicated In the sales Invoice.

Sales returns and allowances shal I be allowed as deduction from gross sales In the period when such returns and allowances are made.

If the returns or allowances exceed the gross sales for the DECISION C.T.A. CASE NO. 4420 - 5- the succeeding period or periods.

(Underscoring ours)." On January 151 1990, petitioner f I I ed with respondent a request for tax credit or refund of erroneously or I I legally collected sales tax, In the total amount of P2,471,979.00.

Four days later, or on January 20, 1990, petitioner elevated Its claim to this Court by fl I lng a Petition for Review. Respondent's Answer was fl led on July 9, 1990, stating by way of Special and Affirmative Defenses, the following:

"6.

Petitioner's claim for tax refund/credit Is pending Investigation; 7.

In order that cash discounts may be a.l lowed as a deduction from the gross se1·11ng price under Section 5 (b) of Revenue Regulations No.2-86, It Is Incumbent upon the petitioner to show clearly that said oash discounts are given at the time of the sale and are expressly indicated In the sales Invoice;,,, 8.

Petitioner's argument that Johnson's Baby Cologne Is the same product having the same alcohol content during the year I nvo I ved Is·' not supported by evidence.

Hence, the same Is subject to sales tax;

9.

It Is Incumbent upon the petitioner to show compl lance with the provisions of Section 230 In relation to Section 240 of the Tax Code; 10.

In an action for refund and/or tax credit the taxpayer has the burden of showing that the taxes allegedly paid were erroneously collected and failure to DECISION C.T.A. CASE NO. 4420 - 6- sustain said burden Is fatal to the action for refund;

11.

The amount of P2,471,979.00 allegedly representing erroneously paid sales tax on sales of Johnson Baby Cologne and sales tax effects of cash discount erroneously not deducted from the sel I lng price In computing the taxable base of the sales tax was collected In accordance with law and existing regulations, hence, not refundable;

12.

A claim for tax refund/credit Is construed strictly against claimants since a claim for refund of sales tax partakes of the nature of an exemption from taxation (Coli.

of Int.

Rev. v.

Ledesma, G.R. No. L-17508, 31 SCRA 95, January 30, 1 970) .

The lone factual Issue Involved In this case Is whether or not petitioner is entitled to the refund or tax credit of the total amount of P2,471,979.00 as erroneous I y o·r I I I ega I I y co I I ected sa I es tax on sa I es of Johnson's Baby Cologne and also as cash discounts erroneously not deducted from petitioner's sales, both for the calendar quarter ended December 31, 1987. After a careful and exhaustive scrutiny of the records of the case, as wei I as the numerous Invoices presented, the Court had the following findings, to wit: 1.

The total sales of Johnson's Baby Cologne amounting to P17,092,724.00 were not alI supported by invoices as shown In the table hereinafter presented; 2.

There were invoices which sales tax was already based contrary to the allegation sales tax was based on the signify that the on the net sales, of petitioner that gross sales.

Said DECISION C.T.A. CASE NO. 4420 - 7- Invoices were marked as Exhs. "F-45" to "F-76", "F-79" to "F-87" and "F-96"; and 3.

Invoices marked as Exhs.

"F-7", "F-8", "F-9" and "F-28" represent sales for the 3rd quarter of 1987, thus, should not form part of the Instant claim as the latter covers only the fourth quarter of 1987. Consequently, as gathered from the exhibits presented and submitted by petitioner, the allowable refund that can be granted is hereby recomputed as fo I I ows:

Recomputation of Pertaining to Sales of and Effect of Cash Computation for the December 31, 1987.

Refundable Sales Tax Johnson's Baby Discount per Calendar Quarter Cologne Court Ended a> Sales tax corresponding to the sales of Johnson's Baby Cologne (P595,608.44 X 20%) P119,121.69 b) Effect of cash discount 85,962.89' Total amount refundable P205,084.58 JOHNSON & JOHNSON {PHILS. l, INC.

SALES INVOICE SUMMARY

For the Calendar Quarter Ended Dece1ber 31, 1987 Invoice s A l E s Date No.

Other Products ,, J ll,.C,,~, 10-16-87 015703 p 182,580.60 10-16-87 015704 12,503.~0 p 30,391.20 10-16-87 015705 6,977.50 10-16-87 015706 4,321.85 2,707.80 10-16-87 015708 6,750.00 ..

Johnson Is Baby Cologne 'r,- Refundable Sales Tax Discount on Cash Discount Exh.

5,440.90 1,278.27 207.92 209.49 201.15 691.34 214.48' 48.14 35.15 33.74 F F-2 F-3 F-4 F-5 DECISION C.T.A. CASE NO. 4420 Date 10-15-87 10-09-87 10-09-87 10-14-87 10-14-87 10-14-87 10-15-87 10-15-87 10-15-87 10-15-87 10-13-87 10-10-87 10-10-87 10-13-87 10-14-87 10-01-87 10-01-87 10-01-87 10-01-87 10-07-87 10-14-87 10-14-87 10-02-87 10-06-87 10-12-87 10-12-87 10-13-87 10-08-87 10-13-87 10-16-87 10-16-87 10-16-87 10-16-87 Invoice § No.

015709 016466 016467 016469 016472 016473 016474 016475 016476 016479 | 018624 620125 020131 020133 020140 020175 020177 020178 020180 020395 020434 020438 020733 020755 020783 020784 020787 . 021212 10-16-87 ° 10-16-87 10-26-87 10-30-87 10-21-87 .

10-21-87 10-24-87 10-21-87 021240 021272 021277 021278 021286 021296 021297 017680 017687 019913 019914 ¢ 019915 10-21-87 .

10-21-87 10-23-87 * 019918 019919 019931 019935 jJohnson’s Baby Cologne

A OL

Other Products 2,250.00 1,339.60 918.00 21,273.22 4,049.80 846.60 2,968.20 14,263.00 22,440.00 60,660.00 4,775.42 3,354.10 2,409.78 1,285.20 25,075.00 6,000.00 2,400.00 4,422.28 2,705.94 4,688.70 67,449.40 60,441.60 15,264.00 - 1,976.40 4,459.20 4,900.80 9,525.48 8,886.40 24,310.85 6,708.40 8,054.20 8,554.06 12,978.96 92,150.00 18,000.02 2,029.69 5,400.00 29,540.46 13,991.40 2,731.50 6,308.10 11,500.80 23,246.40 4,318.25 E §

JB C*

6 ’ 15,040.80 10,584.00 — 1,887.60 =~ 2,579.20 3,876.30 882.00 5,019.60 10,027.20 14,451.60 5,662.80 3,528.00 1,368.85 r + ¢ Discount 67.05 66.17 45,35 1,050.89 150.66 41.82 146.63 704.59 1,108.54 3,006.48 112.50 165.69 119.05 63.49 1,238.70 178.80 11.52 101.99:

80.64 587.94 _ 2,009.99 2,116.55 454.87 58.89 305,94 474.48 105,05 765.66 724,47 276.77 | 355.52 254.91 408.06 1,107.48 635.21 60.49 160,92 1,310.96 585.69 81.40 187.98 $42.73 197,87 170.07 % Refundable Safes Tax on Cash Discount 11.24 6.00 6.25 95.95 25.21 7.00 24.54 17.90 185.51 272.76 16.32 7.89 5.67 3,02 112.38 40.00 12.00 1.93 20.23 18.81 155.09 $55.13 16,32 9,89 :

51.14 19.18 5.32 125.76 167.88 14,73 81.74 60.06 38.06 102.24 81.81 fh.

oOo wo on OD OO & wh —- & Sn ied Biers itt Biles 2 Bilton 2 Bie: Bien Bites Ble: ites es ite a} ' PRC er er.

~~ TH

too Tr ~r a Mo DECISION C. T.A. CASE NO. 4420 - 9- Invoice s A l E s Refundable Sales Tax Date No.

Other Products J 8 c * Discount on Cash Discount Ex h.

10-29-87 019946 3,539.34 599.65 123.34 F-54 10-27-87 021324 1,870.00 92.37 F-55 10-26-87 021371 2,362.50 70.40 F-56 10-26-87 019123 3,398.60 101.27 F-57 10-26-87 018435 6,881. 70 9,151.92 477.79 F-58 10-26-87 017679 8,398.95 250.29 F-59 11-06-87 013413 7,555.20 1,887.60 281.40 F-60 11-12-87 017821 16,626.32 742.80 517.60 F-61 11-12-87 017833 12,707.76 378.69 F-62 11-12-87 017834 87,423.60 6,808.80 2,808.12 F-63 11-17-87 017859 7,537.40 1,485.60 268.88 F-64 11-17-87 017860 3,026.40 90.18 F-65 11-02-87 018444 3,121.05 93.00 F-66 11-03-87 018445 9,599.00 5,168.40 440.06 F-67 11-05-87 018451 1,356.90 40.42 F-68 11-10-87 018457 39,127.10 1,165.98 F-69 11-13-87 018486 35,113.86 1,046.38 F-70 11-14-87 018487 79,083.05 15,040.80 2,804.88 F-71 11-14-87 018488 15,595.70 4,611.60 602.17 F-72 11·14-87 018489 11,197.70 2,472.80 407.37 F-73 11-14-87 018497 10,586.44 315.47 F-74 11-02-87 021402 4,337.92 136.70 133.35 F-75 11-07-87 013452 1,929.15 57.49 F-76 11-17-87 013495 4,998.65 1,292.10 187.47 18.05 F-77 11-17-87 013496 13,165.80 392.34 55.07 F-78 11-17-87 013498 1,274.40 37.97 F-79 11-19-87 017914 3,087. 70 92.02 F-80 11-27-87 . 017924 9,699.90 792.76 ...

F-81 11-03-87 017932 2,340.60 178.14 F-82 12-08-87 013526 2,546.10 75.87 F-83 12-10-87 017938 253.00 742.80 29.68 F-84 12-15-87 017945 15,780.45 1,160.08

F-85 ·

12-17-87 013531 28,289.15 843.02 F-86 12-10-87 016505 10,581.20 9,378.00 594.78 F-87 11-23-87 013502 3,423.60 1,887.60 158.27 26.55 F-88 12-04-87 013506 56,095.20 23,677.20 2,377.21 398.85 F-89 12-14-87 013530 46,214.30 18,756.00 1,936.11 324.85 F-90 11-27-87 016808 3,570.00 176.36' 29.51 F-91 11-27-87 016809 331.50 16.38

2. 74 F-92 12-11-87 016815 3,740.00 184.76 30.92 F-93 12-23-87 016816 12,779.75 631. 32 105.64 F-94 12-16-87 016960 7,244.10 1,585.50 263.13 15.37

F-95 ·

11-27-87 017925 5,635.20 471.11 F-96 11-19-87 021589 1,064.88 52.61 2.51 F-97 * Johnson's Baby Cologne DECISION C.T.A. CASE NO. 4420 - 10- Invoice § A L E § Refundable Sales Tax Date No. Other Products JB C* Discount on Cash Discount Exh, 11-26-87 021592 2,023.00 99.94 4.17 F-98 12-02-87 021595 5,057.50 249,84 44,81 F~99 12-07-87 021646 2,700.00 60.46 13.50 F-100 11-23-87 023232 18,490.60 1,268.61 212.05 F-101 11-23-87 023233 6,176.52 303.92 50.86 F~102 12-10-87 023249 1,734.60 119.00 19.88 F-103 12-10-87 024250 49,914.90 2,455.99 410.99 F-104 12-12-87 028251 35,910.00 1,766.90 295.68 F-105 12-14-87 023252 49,914, 90 2,456.02 411.00 F-106 12-14-87 023253 — 19,814.45 1,359.42 227.23 F-107 12-22-87 023254 3,689.00 253,09 42.34 F-108 12-22-87 023255 158,283.30 7,788.17 1,903.31 F-109 12-10-87 023702 69,943.50 6,943.50 1,168.06 F-110 12-10-87 023703 31, 860.00 3,126.00 542.06 F~110 12-15-87 023707 3,075.30 151,92 25.42 F-111 12-18-87 023712 2,759.10 136.30 22.081 F-112 12-23-87 023715 864.45 42.176 2,03 F-113 12-23-87 023716 4,131.00 204.07 9.72 F-114 11-18-87 866341 912.00 45,05 7.51 F-115 11-15-87 217362 22,554.75 1,194.21 101.32 F-116 11-15-87 217368 10,361.50 — - 4486 46.54 F-147 11-16-87 217493 317,487.20 15,683.86 © 473.43 F-118 11-17-87 217590 878,250.00 26,171.85 4,364.90 F-119 Wi-17-87 217594 3,947, 226.00 99,747.33 16,635.72 F-120 W1-47-87 217637 8,478.11 252.65 57.43 F-121 11-17-87 217661 53,730.00 1,601.15 267,04 F-122 11-18-87 217670 2,160, 681,00 64,388.29 14,920.90 F-123 11-18-87 | 217678 26,640.00 793,87: 11.78 F-124 14-18-87 © 217679 10,656.00 317.55 4,72 F~125 11-18-87 217680 5,328.00 158.77 2.36 F-126 11-18-87 217699 17,115.60 845.51 76.88 F-427 W1-18-87 217700 5,355.00 264.54 ~~ 24.05 F-128 11-18-87 217718 5,465.16 269,98 29.94 F-129 14-18-87 = 27701 7,140.00 352.72 $2.07 F-130 11-18-87 217729 2,612.74 129.06 16.83 F-131 {1-18-87 © 217731 639.99 31.62 3.44 F-192 11-19-87 217921 112,500.00 3,352.50 559.13 F-133 11-19-87 217924 225,000.00 6,705.00 1,118.25 F-134 11-19-87 217934 32,435.66 1,602.32 400.89 F-135 11-19-87 217974 1,235.00 36.80 6.14 F-136 11-19-87 217975 5,279.70 157,34 26,24 F-138 11-19-87 218028 189,189.00 5,637.83 940.27 F-139 11-19-87 218086 5,427.15 161,73 26,98 F-140 11-19-87 218088 1,200.00 35.76 5.96 F-141 * Johnson’s Baby Cologne DECISION C.T.A.

bate 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-19-87 11-06-87 11-06-87 11-12-87 10-11-87 10-17-87 10-23-87 10-26-87 10-26-87 10-30-87 11-06-87 11-06-87 11-09-87 11-09-87 11-13-87 11-13-87 10-23-87 10-23-87 10-23-87 10-26-87 11-03-87 11-04-87 11-12-87 11-09-87 11-10-87 11-10-87 11-11-87 11-12-87 11-12-87 11-12-87 11-12-87 11-13-87 11-13-87 11-02-87 * CASE NO. 4420 Invoice No.

218092 218095 218112 218122 218128 218129 218164 218176 218186 218187 218194 018417 013418 013483 015731 016792 015751 015752 015753 015785 015815 015817 015845 015846 015862 015863 016484 016485 016486 016489 016493 016494 016499 016610 016620 016621 016710 016721 016736 016750 016802 016805 016806 019304 Johnson’s Baby Cologne §$ A oL Other Products 7,633.00 405.45 1,216.35 5,773.20 7,988.30 1,295.40 3,052.80 4,940.00 1,576.58 540,000.00 1,200.00 20,178.95 7,045.95 6,449.80 16,641.00 34,082.70 9,000.00 52,893.60 2,918.16 4,500.00 42,804.00 7,004.40 58,088.40 — 21,509.70 164,130.10 86,972.55 4,949.00 2,465.00 1,045.50 3,825.00 1,343.00 5,062.60 3,604.00 82,418.82 24,343.16 1,811.70 8,129.70 8,918.40 §, 749.40 2,104.60 39,555.60 19,720.00 9,010.00 35,159.90 §

JB C*

4,518.40 6,442.60 5,665.00 9,378.00 10,584.00 7,803.20 2,305.80 4,921.20 62 Discount 377.07 20.03 60.09 285.19 394.63 63,99 90.98 147,21 46.99 16,092.00 35.76 601.33 344.61 384.19 670.68 1,295.19 444.60 1,576.23 86.96 134.10 1,275.56 208.73 1,731.03 640.99 5,206.48 2,591.79 165.44 121.77 51.65 108.96 66.34 250.09 178,03 2,673.72 1,670.13 141,88 242.27 611.86 240.04 62.72 1,954.04 974,17 445.09 1,194.42 Refundable Sales Tax on Cash Discount 34.28 1.82 5.47 47,55 35.89 5.84 15.17 24.55 1.84 2,683.80 §.96 66.78 57.82 17,02 103.57 217.30 74,40 264.46 7.9 22.50 214.02 35.02 290.44 108.59 418.17 1,025.76 27.69 20.38 8.64 31.62 11.10 41.86 16,15 342.92 287,25 23.71 40.65 102,28 59.70 10.83 326.99 92.76 40.38 200.41 tah.

F-142 F-143 F-144 F-145 F-146 F-147 F~148 F-149 F-150 F151 F-152 F-153 F-154 F-155 F-156 F-157 F-158 F-159 F-160 F-161 F-162 F-163 F-164 F-165 F-166 F-167 F-168

F-169 ~

F-170 F174 F-472 F173 F-474

F-175 ©

F-178 F-177 F-178 F-179 F-180 F-184 F-182 F-183 F-184 F-185 DECISION C.T.A. CASE NO. 4420 - 12- Invoice iN A L E § Refundable Sales Tax Date No. Other Products JB C* Discount on Cash Discount Exh. 11-02-87 019949 15,264.00 454,87 76,32 F-186 10-23-87 020912 4,234.50 126.19 21.17 F-187 11-02-87 020934 33, 810,60 2,319.67 331.78 F-188 {1-02-87 020935 2,683.90 279.00 46.60 F-189 11-12-87 = Q21176 213,750.00 10,517.35 1,760.02 F-190 (1-13-87 © 021193 85,500.00 4,206.94 704.01 F-491 10-21-87 = 021314 757.95 37.42 3.39 F-192 10-22-87 021316 17,272.00 853.23 142.78 F-193 10-22-87 «021317 3,614, 67 178.56 6.51 F-194 {0-22-87 021318 6,661.60 338.96 16.15 F-195 11-05-87 021337 1,198.50 §9.20 9.91 F-196 11-10-87 021344 §,218.15 257.77 17,55 F-{97 {1-02-87 021391 6,663.60 198.58 33,32 F-198 11-02-87 021392 1,884.49 682.00 82.44 4.54 F-199 11-03-87 = 021406 85,674.40 22,808.40 3,232.79 117.27 F-200 11-03-87 021419 672.00 20.03 3.36 F-201 11-10-87 §©—021447 3,403.22 294.00 110.17 15.96 F-202 {1-1t-87 - 021471 2,961.60 88.28 14,81 F-203 Vi-41-87 = 021476 11,905.25 336.89 56.53 F-204 {t-1-87 020478 5,644.80 168.21 28.22 F-205 11-11-87 021480 3,623.50 902.60 134,88 22.63 F-206 11-11-87 # 021481 34,274.10 15,442.80 ~ © 1,481.57: 296.56 F-207 11-11-87 021482 10,774.20 $21.07 §3.87 F-208 11-13-87 021534 - 14,631.60 ‘436.02 °° = 73.16 © F209 {1-13-87 024535 "$7,514.30 1,117.92 95.85 F-210 {1-13-87 © 021536 4,849.70 - 471,90 158.58 26.61 F-211 {1-13-87 = 0.21562 11,887.20 587.22 1,26 F~242 11-13-87. 021563 62,424.85 3,063.78 © 134.59 F~214 11-13-87 021584 50,150.00 2,477.44 224,77 F~215 11-13-87 = 021587 * 3,672.00 181.40 16.45 F-216 10-26-87 216089 46,130.70 5,942.40 1,551.78 425.94 F-217 10-26-87 216090 14,091.00 419.91 70.04 F-218 10-26-87 216101 13,369.55 398.42 66,44 F-2t9 10-27-87 216196 18,700.00 923,78 84.00 F-220 10-27-87 216200 2,975.00 146.97 13.37 F~221 10-29-87 © 216212 1,010.85 30.12 5.02 F-222 10-29-87 216248 276.00 8,22 1.37 F-228 10-29-87 ~ 216255 2,491.20 74,24 , 12.38 F-224 10-29-87 216259 3,735.00 111.30 18.56 F-225 10-29-87 | 216261 6,072.00 180.95 | 30.18 F-226 10-29-87 216291 8,028.00 943,80 433.14 72,21 F-227 10-29-87 216294 5,610.00 277.13 ¢ 25.20 F~228 10-31-87 216326 7,768.85 231.51 38.62 F-229 11-02-87 216367 so 2,664.00 232.24 15.29 F-230 * Johnson’s Baby Cologne 4 ' bea C.T.A. CASE Date 11-02-87 11-02-81 11-02-87 $t-09~87 11-42-87 12-02-87 dtd) 8B] 1-4-8?

11-03-87 Vig ae tt-42- By JU Be tia he tbat fi-35 BF bed y 41-04-97 1h 83-87 (i-aa-g7 oay.97 hha t1-o4 $7 fh aad be-4e-8) fiat?

PE ya ay

{1-99 B]

Hedge $4 -44-Ry ftegd 87 pe yal Pay re fe bg?

Hyd 8;

PP oki Vi-G5-R7 ga ay $t-G8-8?

1) 98-46 TE-GR-G7 {} 44-9 th-07-87

11-88 RF

NO. 4420 tavolce $ sk Ut Ho. Other Produats, 216370 218371 216973

24G3 74

246484 21649) 21h 492 DHBNI6 Pedy VRE ouside Zbb Has pbedag EeAuy PPAtha 2taghl 29,537.8?

4,439.69 1,238.29 (275,29 18 479.490 $7 952,00 4,998 a0 19,90,.09 2, ahd ad Ae Dery ds ee) Jed al gt, egy bet es ee PAS (54d ts ACRES oe ss Pathe $4,748, 9% ftaded - AP alloca JpAday eysaas Patt bi fy :

Phe tbl tet ginaad P24 tm ata Gaye?

stitia He aya dh 2batee PA roe |

HGS TN

RL Ist te boa de ff te toye Etandy thou ga finds ocr) 4 rings hu te oa ien con td Sahoo Ty a eee fyeh ot hosatl Abit ¢ Bh ihe Pte joy RG Anbta chau Paw et é ela Phanit hytei8 Pees Boba 2184s 2 CUBED yeas Sheba Pale. gu Le | Phe) QUST Johnsen’ s want BC” - 13- 889.23 108.44 46.81 16.94 652,43 383.99 92,492 2,151,427 19,49 By td 04,49 st, 74 19,44 iS eee 83 aay tye At BLAY ooty 18049, 50 1,424.38 RE, Ua May fd, aaa it tylhi.a?

a5) nt 74 ahh KARAT

AS TA

Bay 72.4 4.22 wha 8 49.44 thol44 27046 my 24879 AVA. 8a 9,91).28 1 d45. 09 2,044 qa hi? ae Ride baby Unotogne ae Refundable Sales Tar on Cash Discount Exh.

46,47 20,47 6.14 6.44 92.98 61,39 Le bs) 444 1.4 3.4?

1,4?

aa 1.7 24,55 0.49 a?

64a 1.42 69.44 1a,et iMt 94.59 1,224.58 ae 48,57 Sua Py 44,49 #24 bay vig 1.4:

{iO Sy 44.29 18.4 Ya.es t.ch 44.48 40.63 184.98 dati 24,07 a.)

F-241 F~232 F299 F-294 F-235 F~346 beer F148 F749 244 fay ora t “#43 “dy P-24h pds 44 ar ' ' F t t ' i ;

f { f j ‘ f ' i { boo!

t f $ ' ;

i i § !

t !

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;

DECISION C.T.A. CASE NO. 4420 - 14- Invoice s A l E s Refundable Sales Tax Date No.

Other Products

J B C*

Discount.

on Cash DIscount: .. llh. 11-08-87 216675 517.65 25.57 2.32 F-276 11-09-87 216858 178,890.20 93,780.00 8,125.57 1,31 1. 28 F-277 11-09-87 216859 14,374.80 428.37 71.44 F-278 11-09-87 216860 43,797.90 1, 305. 18 .

316.14 F-279 11-09-87 216865 50,538.90 1,506.06 282.21 F-280 11-10-87 216880 5,610.00 277.13 25.20 F-281 11-11-87 216951 6,120.00 302.33 50.41 F-282 11-11-87 216986 15,010.80 447.32 74.60 F-283 11-11-87 216992 147,000.00 4,380.60 730.59 F-284 11-11-87 216993 12,657.30 377.18 62.90 F-285 11-11-87 216996 22,935.76 247.60 690.86 40.65 F-286 11-11-87 216997 952.20 28.37 4.74 .

F-287 11-11-87 216998 102,431.28 1,632.24 3,101.10 517.20 F-288 11-11-87 216999 8,386.50 249.92 41.67 F-290 11-11-87 217000 24,629.40 4,921. 20 1,929.11 321.63 f-291 11-11-87 217001 16,618.50 820.95 102.61 F-292 11-11-87 217002 3,370.57 166.50 18.47 F-293 11-12-87 217012 212,053.20 6,319.18 .

1,053.90 F-294 11-12-87 217015 121,528.80 67,464.00 5,63 t. 99 939.30 F-295 11-12-87 217016.

2,190,655.40 65,281.53 13,280.37 F-296 11-12-87 217018 132,100.60 66,540.00 5,919.49 987.24 F-297 11-12-87 217020 1,334.16 39.76 0.59 F-298 11-12-87 217026 54,000.00 1,609.20 268.38 F-299 11-12-87 217067 69,822.92 1,485.60 2,125.00 •· 226.16 F-300 11-13-87 217109 1,047.75 31.23 5.21 F-301 11-13-87 217124 . 2,095.50 62.45 .

10.42 ..

F-302 11-13-87 217127 1 ,047. 75 31 .23 5.21 F-303 11-13-87 217128 25,146.00 749.35 ·.

124.97 F-304 11-13-87 217134 3,670.50 109.39 18.23 F-305 11-13-87 217135 51600. u.,.,, ~, .... <•'<; >}/l)ffi\11',,,. • 166:89 #'·'i,'";'!'''' 27.U"'~'·.'·~· F-306 T 0 T A l . H6,694,718.1S, ,,,mJi~!l't9ll9.4t~-.P86 1 .862.89 Petitioner has compl led with the provisions of Section 230 of the Tax Code.

Its claim for tax-- , credit/refund was filed both In the administrative and judicial levels within two years from the· date of payment.

* Johnson's Baby Co I ogne·· DECISION C.T.A. CASE NO. 4420 - 15-

WHEREFORE, finding the petition partly MERITORIOUS and In accordance with law, the same Is hereby GRANTED but only In the reduced amount of P205,084.58.

Respondent Is hereby ORDERED to REFUND or ISSUE Tax Credit Certificate in favor of petitioner only In the amount of P205,084.58, as erroneously collected sales tax on sales of Johnson's Baby Cologne, and also as cash discounts erroneously not deducted from petitioners sales, both for the calendar quarter ended December 31, 1987.

WE CONCUR:

~lQ.

... ~ ERNESTO D. ACOSTA Presiding Judge (On Leave) MANUEL K. GRUBA Associate Judge ~ t:r* 1/ r AMON 0. DE~~ A Associate Jud I DECISION C.T.A. CASE NO. 4420 - 16- CERTIFICATION hereby certify that this decision was reached after due consultation among the members of the Court of Tax Appeals in accordance with Section 13, Article

VI I I

of the Constitution ~NEf.fo~L A~ Presiding Judge Court of Tax Appeals