Rnscor Hagedorn Securities, et al. vs. Commissioner of Internal Revenue

DECISION

This is a petition for refund of Rnscor Hagedorn Securities, Inc.

in the a11ount of P87,S46.96 as erroneously paid value added taK for the first quarter of 1'391.

Petitioner is a licensed broker/dealer of securities rendet~ing .services to and non-resident investors.

Whenever it purchases shares of stocks in behalf of its non-resident clients, the latter •ake inward remittances. of fbreign currency in payment of the purchase price and commission due to ~etitioner.

And when it sells shares of stocks, it remits to its foreign clients the proceeds net of commissions and taxes. 116 I I / ~-

- 2- During the fir~t quarter of 1991, that January 1, 1991 to March 31, 1991, petitioner earned of P2,G3G,034.95.

On Ap•~i l 23, 1991, it filed its VAT return and computed the VAT due a~ follow~: Co••i~~ion lnco•e Multiplied by VAT Payable Less: Input TaK P2,G3G,034.97 1/11 p 239,639.55 6,086.08 P 233,5G3.47 For the sa•e quarter reported, petitioner derived broker's co••ission fro• buying and selling of shares of stocks for and in behalf of non-resident clients in the a•ount of P936,016.45.

This a•ount was included in the total co••ission income of P2,636,034.95 thereby erroneously subjecting said brokers co••ission to 10~ VAT.

Petitioner believe~ that it~ broker'~ commission income is subject to zero per cent <O~> rate of VAT pur~uant to Section 102

(a) <2> of the Tax Code- which provides:

"Section 102.

v.illuE>-added tax on salE> oF services - <a> Rate and .base of tax - There shall be levied, asse~sed and collected, a val~e added tax equipment to 10 percent of gross receipts derived by any person engaged in the sale of service~.

xxx Provided that the following sales by VAT- registered pers~ns shall be subject to 0~: (1) X X X 117

- 3- (2) Services other than those •entioned in the preceding sub-paragraph, the consideration for which is paid for in acceptable foreign currency which is remitted inwardly to the Philippines and accounted for in accordance.with the rules and regulations of the Central Bank of the Philippines. (3) )C )C >e" Upon ,~eal i zing that erroneous of VAT, on September 2G, 1991' petitioner filed a written claim for refund with the B.l.R. in the of P87, 54&. 9G, computed hereunder pursuant to Revenue Regulations No. 5-89. Thus: Commission income from sale of services Less zero-rated sale of services Amount of Commission subject to 10% VAT VAT payable <Multiplied by 1/11> P2,&3G,034.97 9&3,016.45 P1,673,018.52 p 152,092.59 The alleged overpayment is arrived at as follows: VAT actually paid to BIR VAT due under RR 5-87 Overpayment P23'3,63'3.55 152,092.59 p 87,546.'36 Petitioner's claim remains unacted upon up to January 22, 1993, the date of filing the instant petition for review with this Court. ln his answer filed on February 11, 1993, respondent raised the following as his special and affirmative defenses:

118

4 - "1.

Petitioner's credit/refund is still investigation.

claim pending for tax administrative 2.

The alleged zero-rated sale of services performed by the petitioner is not substantiated by proper documents. 3.

Petitioner has not shown that the taxes allegedly to be refunded have been withheld by or re•itted to respondent.

Even granting arguendo that said taxes have been withheld by or remitted to respondent, the presumption is that they were collected in accordance with law and existing regulations. 4.

Petitioner must show compliance with the provisions of Section 204 in relation to Section 230 of the National Internal Revenue Code, as amended.

5.

Since a claim for tax credit/refund partakes of the nature of a tax exemption, said claim is construed strictly against the cl~imant <Resins, Inc. vs. Auditor General, 25 SCRA 754>."

The facts of the case at bar fall squarely with the facts of CTA Case Nos. 4657 and 4785 involving claims for refund/tax credit also of petitioner for erroneously paid value-added taxes for the taxable years 1989 and 1990, respectively.

Naturally, it follows that the sa•e issues resolved by this Court in said cases will also be tackled in the instant case.

The issues are as •entioned below: 1.

Whether or not petitioner's co••ission income qualify for the zero rate of VAT;

and 2.

Whether or for t~efund petit i oneJ~.

not the requirements for claim have been complied with by 119

- 5- Pt.n~suant to sub-pal~agl~aph 2 of Section 102 (a), there are three (3) with in order to qualify for the zero percent <O~> of VAT.

These are:

1.

The considet~ation rendered is paid for in ct..n~,~ency;

for their services acceptable foreign 2.

The foreign currency is remitted inwardly to the Philippines; and 3.

The re•ittance •ust be accounted for in accordance with the rules and regulations of the Central Bank of the Philippines. To co•ply with the above require•ents, petit i onet~ for•ally offered as its evidence the following docu•ents, to wit:

Exhibits "A" to "A-52" "B" to "B-~3" Nature Petit i one•~' s Sales Invoices for the 1st Qt.~artt>r 1991 effecting tht> salt> of shart>s of stock ownt>d by its fort>ign tht~OII.tgh tht> Stock Exchange clients Makati Petit i onet~' s. l='urchase Invoices for 1~t Qll.tartt>r 1991 effecting purchases of stocks in the Kakati Stock Exchange for its foJ~l"i gn eli ent s 120 Description To prove that fot~ tht> 1st q-.sart t>r 1991, petit i one,~ sold, thro\sgh tht> I'Jakati Stock Exchangt>, tht> shart>s of stocks owned by its foreign clients To pl~ove that for tht> 1st quaJ~t .;,~ 1991 pt>t it i ont>J~ bo11.tght shaJ~es of stocks at the Makati Stocks Exchange for tht> acco\mt of its foreign clit>nts

DECISION -

C.T.A. Ca5e No. 4948. Exhibits "C" to "C-3&" "0" to "0-23" "E" to "E-38" "F" "G" to "G-2" Bank Credit on foreign re•ittance - 6- Advices exchange to the petitioner for 1st quarter 1991 CB FEOU For•s No. 1 (May 1 '3, 1 '386) acco•plished and filed by petitioner with the CB for its purchases of stocks for its foreign clients for the 1st se•ester, 1'3'31 CB's Authority allowing certain banks to re•it foreign currency Petitioner's VAT Registration Certifi cate No. 32-'3-000381 Petitioner's 1st se•., 1 '3'31 VAT r·eturn 121 Description To provP that for services rendered petitioner receivPd as co•pensat ion US doll al~s re•itt~d through thP banking systP• and accountPd for in accordancP with CB Rules and Regulations To prove that petitioner filed with the Central Bank the sale of Philippine stocks to non-residents and was granted authority to transfer outward cor•respond ing stock certificates to its foreign clients To prove that the CB allowed certain banks to r·e• it foreign cur•rency to non-r·es ident clients of petitioner To prove that is a VAT enterprise petitioner register·ed To prove that petitioner filed on April 22, 1'3'31 its VAT l'!it '!ie•.

1'3'31 r•eturn· To pl~ovP that petitioner declared as nPt payable as VAT output tax the su• of V233,553.49 which included co••issions it earned on the sale and p\trchases of stocl•s. ftw

DECISION -

C.T.R. Case No.

4~48.

Exhibits "G-3" "H" to "H- J" 7 - Nature CB Receipt Confir•ation No.

822471156 in the of P2JJ,SSJ.47 4-22-'31 in petitioner's na•e su• dated the Petitioner's clai• for refund dated 25 Septe•ber 1'3'31 signed by R. F. Yap and E. B.

Pal•aria (2) pages <pp. 56-5 7 CTa records) Dt!s~:Tiption its. foJ~l'i gn eli £>nts. which Wl'J~l' paid in f oJ~l'i gn curr£>ncy re•itted in th£> banking s.ys.te• and acco1.mt ed f oJ~ in accordanc£> with CB Rules and R£>gulations To prove that petitioner paid the su• of P2JJ,SSJ.47 as its VAT output taM for lst se•,. 1'3'31 To prove that on Septe•ber 26, 1'3'31 petitioner filed its c1ai• for ref•Jnd of overpaid VAT for 1st quarter 1'391 with the BIR Appellate Division A careful perusal of the above•entioned docu•ents sub•itted as evidence, revealed that petitioner received inward re•ittances of foreign currency only in cases where petitioner bought shares of stocks for its non- resident clients.

It did not receive inward reMittance of foreign currency, whenever it sold shares of stocks owned by its non-resident clients. In cases of sales, it was petitioner who re•itted abroad to its non-resident clients the proceeds of its sales paid for in local c•J.rrency, net of its co•mission Pursuant to 122

DECISION -

C.T.R. Case No. 4948. - 8 - Section 8 (c) (3) of Revenue Regulations No.

5-87, commission income fro• said sales which are paid for in local currency shall not be subject to zero rate but to 10~ rate of VAT:

Thus, the law provides: "Section 8 Zero-,~ating - <a> In general. - >< >< x (b) Zero-rated sale of goods. - >< >< >< <c> Zero-rated sale of by services.

The following services rendered persons are zero-rated : VAT registered (1) X X X (2) X X X (3) Services perforaed in the Philippines other than those •entioned in subparagraph (1) above which are paid for by the person or entity to whom the service is rendered in acceptable foreign currency inwardly re•itted and duly accounted for in accordance with Central Bank regulations.

Where the contract involves pay•ents in both foreign and local currency, only the service corespondent to that paid in foreign currency shall enjoy zero- rating.

The portion paid for in local currency shall be subject to VAT at the rate of 10~.

(d) >e><><" <Underscoring supplied> As hereinbefore stated, sales of securities by petitioner do not qualify for zero rate of VAT for two

(2) reasons. First, their proceeds were not paid for in foreign currency, but in local currency.

Second, such proceeds were not inwardly remitted, but were remitted abroad to its non-resident clients net of petitioner's 123

DECISION —

C.T.A. Case No. 4944. — 9 _ commission income. Such sales of securities were covered by various invoices, details of which are as tabulated hereunder:

SALES OF SECURITIES

feount* [avoice ; Security Coesission Authorized for No. Date Client Sold Incope Exh. Outward Resittance Exh.

Q022089A 01-02-91 Jaees Capel (FE) San Miquel-8 6,688.66 A 3, 537,687.68 € QO221S1A 01-08-91 Berauda Phil.

Long-Ters Equity Lepanto Cons Mag-B 7,875.00 fi 315, 812. 0 - 0022160A 01-099] Baring Securities Phil. Rity & Hidgs B 37.0 2 “7,443.75 E-I Oee201A 01-17-91 Tyndall] Pacific Phi). Nat?) Bank 84,645.00 A-3 3, 044,247,50 £-2 OOe221EA 01-17-91 Tyndall] Pacific San Miguel - B 9,660.00 A-4 632,730.00 E-2 O022211A 01-18-91 Tyadal] Pacific San Miguel - B 57,750.00 ARS 3, 782,625.00 E-3 022228 01-21-91 Tyndal} Pacific San Mique] - B 31,264.00 A-6 3,357, 792.00 E-3 M022207R 01-18-91 Jases Cape] (FE) Phi). Nat’) Bank 90.00 A? 17,865.00 £-4 O0222456A 01-24-91 Tyadal)] Pacific Phil. Rity & Hidgs B 1,505.40 AB 98,603.70 E-5 O2eHA 01-25-91 Tyndall] Pacific San Miguel - B 19,448.25 A-9 1,273,860.37 £-5 O022231A 01-25-91 Jaees Cape) (FE) Metro Drug - B 2,945.00 AR10 305, 182.50 E-6 Q022e62A 01-28-91 Jases Cape] (FE) Metro Drug - 3 5,928.75 ARI} 1,176,056.87 £-6 O022286A 01-30-91 Jases Cape) (FE) Metro Drug - B 12,325.00 fiz 2,446,532.50 £-7 22e7HA 01-29-91 Jases Cape] (FE) Metro Drug - B 23.75 13 46,399.37 E-7 ML2I71A 01-10-91] Baring Securities San Migue) - B 4,550.00 AR14 962,575.00 £-8 M2IIA 01-31-91 Tynda)) First Phi). Inv. Trust SH Fund - B 53,700.00 ARIS 3,517, 550.00 £-9 QO22H7A O2-01-FL Tyndall First Phil. Inv. Trust SM Fund - B 43,425.00 A-i6 3,237,337,50 £-9 O022287A 01-30-91 Jaars Cape] (FE) Robinsen Land - B 13,717.50 f-17 2, 722,923.75 E-10 O022299R 01-31-91 Jases Cape] (FE) Robinson Land - B 2,/53.50 7-18 427,469.75 £E-13 ML22315A 02-01-91 Jases Cape) (FE) Robinson Land - B 7,594.00 A-19 1,507,409.00 E-1) OOL2229A 01-22-91 Tynda]] Pacific San Migue) - B 15,605.00 A-20 1,022,193.00 E-J2 ON222WA 01-30-91 Saith New Court Keppe] Phils. - B 2,007.50 A21 798,965.00 | ONL232bA 02-04-91 Jases Cape] (FE) Robinson Laad - A 6,098.00 A-2z 1,210,453.00 E-13 ML2ISHA Oe-05-91 Tyndal] First Phil. Inv. Trust SH Fund - B 39,600.00 fAr23 2,993, 800.00 E-14 Q022379A 02-07-91 Tyndall First Phil. Inv. Trust SH Fund - B 109,687.50 A-24 7, 184,531.23 E-35 M22382A 02-07-91 Saith New Court San Migoe] - B 8,337.0 A2S 1,654, 993.75 £-16 0022500R 02-08-91 Jases Cape) (FE) Lepante Cons Ming -B 2,850.00 A-zb 565,725.00 E-17 O022485A 02-20-91 Jases Cape] (FE) = Robinsen Land "B” 30,800.00 A-27 2, 143,800.00 E-18 O02203A Oe-21-391 Jases Cape) (FE) Robinson Land "B” 11,362.50 A-cB 2,374,520 E-19 124

Aeount* favaice Security Coanission Authorized For No. Date Client Sold Incore Exh. Outward Resittance Exh. 002253eA 02-22-91 Jages Capel (FE) Robinson Land “B" 6,289.00 A-29 1,645, 366.90 €-19 O022562R 02-26-91 Jages Capel (FE) Phil. Nat'l Bank 1,790.00 A-30 447,375.00 E-20 0022S75A 02-27-91 Jaees Capel (FE) Phil. Nat'l Bank 16,812.30 A-31 3,337, 281.23 E-20 Q022576A 02-27-91 Jaaes Capel (FE) Rabinson Land “B" 3,129.50 A-Je 1,016,205.735 E-20 QWe2517A Oe-2i-91 Baring Securities Phil. Rity & Hidgs B 2,377.44 A-33 T1613. E-2t 0022536A 02-22-91 Baring Securities Phil. Rity & Hidgs 8 274.70 A-34 94,927.95 E-2l Q022516A 02-21-91 Baring Securities Anglo-Phil. Qil 62.30 Aa-D 16,376.23 E-22 Q022585A 02-28-91 Jases Capel (FE) San Miquel - B 60,838.00 A-36 14, 736,565.50 €-23 0022610A 03-04-91 Hoare Govett Belle Mng & Oil-8 1,800.00 @-37 357,300.00 E-24 00225940 03-01-91 Jaaes Capel (FE) San Miguel - B 6,3%.25 A-38 1,269,655.62 €-25 O022601A 03-01-91 Credit Lyannais San Miguel - B 34,125.00 A-39 10, 743,612.50 E-26 0022617A 03-04-91 Credit Lyonnais San Miguel - 8 12,651.60 A-40 2, 511,342.60 E-26 Q022657A 03-07-91 James Capel (FE) Saniwares Mfg Corp. 6,000.00 A-4l 1, 191,000.00 €-27 0022678A 03-11-91 Jases Capel (FE) Jardine Davies 7,043.76 A-42 1,396, 186.36 €-28 0022666A 03-08-91 Baring Securities San Miquel - B 8,290.00 A-4I 1,637,625.00 €-29 0022724AR O3-14-9L James Capel (FE) Saniwares Nfg Corp. 9,730.00 A-&4 1,935, 375.00 €-10 O022681A 03-11-91 Baring Securities San Niguel - 8 2,790.00 A-45 345,475.00 €-31 Q022693A O3-le-9l James Capel (FE) PLDT -C TI7.30 A-46 142,423.75 €-J2 Q022691A 03-12-91 Jawes Capel (FE) Jardine Davies 5,040.00 A-47 1,000, 440.00 €-kz Q022692R 03-12-91 James Capel (FE) Petrofield Expl.-8 1,625.00 A-46 322,32. E-3 Q022803A 03-26-91 Credit Lyonnais Ayala Corp. -8 12,300.00 A-49 2, 481,290.00 E-34 00226260 03-05-91 Hoare Govett Belle Mag & Dil-8 9.00 A-50 17,865.00 E-35 Q022797A 03-26-91 Jaees Capel (FE) Phil. Mat’! Bank 26.20 A-SI 3,597.70 E-3% Q022747A 03-18-91 Hoare Govett Belle Mng & Oil-8 3,490.00 A-Se 684,625.00 E-37 628, 716.26 82,620, 169. 12 “Net of commission incose and taxes. On the other hand, only the commission income, derived from Gualifies for The commissions are paid for in remitted to petitioner’s purchase petitioner.

zero rate of VAT.

Said covered by various invoices of securities, purchase The reason is of which obvious.

foreign currency inwardly securities whose transactions were also Getails are listed hereinbelow:

129

DECISION —

c.T.A.

Case No.

49468.

PURCHASE OF SECURITIES

Invoi Ne.

00194508 00194660 OO19467A QO1946SA Q019482A 00194930 QOLSSISA QO19505A Q019906A OOLINIIA

00194 99R

0019492A Q019500A Q019529A OO1SS460 QO1'9G66A 0019729A 90198018 0019800A 00199108 00199158 0019927A 00199490 0019959A 00199638 0019991A on20012A WZ00ESA 00200510 OZ00I9A

201 12A

0020172A OO20134A 00202108 ce Date 01-02-91 01-04-91 01-04-91 01-04-91 01-07-91 01-08-91 O1-146-91 01-10-91 Ol-10-21 01-08-91 01-09-91 01-08-91 01-09-91 01-17-91 01-21-91 02-07-91 02-11-91 02-20-91 02-20-91 02-08-91 02-28-91 03-01-91 03-04-91 03-05-91 03-06-91 03-11-91 03-12-91 03-12-91 03-13-91 03-15-91 03-18-91 03-25-91 03-20-91 03-27-91 Based income, from purchases of Client (FE) (FE) (Fe) (FE) (FE) (FE) (Fe) (FE) (FE) (FE) (FE) Jaaes Capel Saaes Capel Saues Capel Sawes Capel Jaees Capel Jaees Capel Sases Capel Jases Capel Jaaes Capel Janes Capel Jases Capel Janes Capel (FE) Jaues Capel (FE) Baring Securities Baring Securities Saues Capel (FE) Jazes Capel (FE) Baring Securities Baring Securities Jaees Capel (FE) Saith New Court Baring Securities Baring Securities Tyndall First Phi]. Inv. Trust Jases Cape] (FE) Saith New Court Suith New Court Baring Securities Baring Securities Baring Securities Baring Securities Baring Securities Baring Securities Jases Capel (FE) on refundable output tax the foregoing the Security Purchased San Niguel-B Siee Darby intl Tire San Niguel-8 Ayala Prop. Yen. -8 Ayala Prop. Yen. 8 Siae Darby intl Tire Siee Darby intl Tire Ayala Prop. Ven. -8 Philex Niaing Corp-8 Ayala Prop. Ven. -8 Ayala Prop. Ven. -B Philex Niaing Corp-8 Philex Mining Corp-B Phil. Nat'l. Bank Phil. Nat'l. Bank Cebu Shipyard-"8"

PLOT - C

PLOT - C

Robinsan Land "8" San Niguel - 8 San Niguel - B San Miguel - B San Niguel - B San Miguel ~ B Phil. Nat’). Bank Jardine Davies Jardine Davies San Miguel - B San Miguel - B San Wiguel - B San Miguel] - B San Miguel - B San Miguel - B ‘Robinson Land "B” derived fram sales of securities same, 126 the Court Copaission lnacose 8, 688. 66 2,480.40 2,356. 38 89.60 652. 80

16. 40 30.00 610.00 %.00 1,557.60 1,197.00 637.50 930. 75 29,206.85 2,246.90 7,200.00 1,206. 25 10, 177.75 3,225.00 13,375. 00 40, 125.00 16, 385. 13 10, 192. 00 68, 913.00 3,624.13 7,056.00 5, 040.00 1, 068.75 3, 990.00 1,974.00 58.00 250.75 857.73 7,238, 0 235, 12.43 segregation Exh. _ B-36 B-3?

B39 B-40 B-4) B-42 B-43 of recomputes in the following manner:

Pacunt Inwardly Resitted 3,564, 353.66 498, 560. 40 594, 351.98 18, 009.60 131,212.60 3,296. 40 6,030.00 122, 610.00 19, 296.00 313,077.60 240, 597.00 128, 137.50 187, 080. 75 5, 086, 254.85 451,626.90 1, 447, 200.00 256, 536. 25 2, 045, 727, 75 648, 225. 00 5, 363, 375.00 8, 065, 125. 00 3,293, 410.13 2, 048, 592. 00 4, 663, 113.00 728, 449, 13 1,418,256. 00 1,013, 040. 00 214,818.75 B01, 990.00 3%, 774.00 11,658, 00 50,400. 75 205, 582. 73 1,454, 938.50 46,293, 707.43 commission and those earned the C-%

Co~•ission inco•e fro• sale of sel~vices - 12 - Less : sale of services subject to zero-J~ating Amount of commission income subject to 10~ VAT Multiply by VAT payable Less payment <Exh. "G-3") Refundable out tax P2,636,034.97 253,712.43 P2,382,322.54 1/11 p 216,574.78 233.553.47 <P 16,978.69> VAT was not billed separately in the invoices. The Court did not include in the above co•putation, the documents which were denied in its Resolution dated January 6, 1995 ( p.

65, CTA recot~ds >.

These were described in petitioner's formal offer as Bank Credit Advices on foreign exchange <p.

56, CTA records> , and were marked as Exhibits "C-3", "C-4", "C-16", "C-19", "C- 20", "C-21" and "C-31 ".

Thus, commission pertaining to these inward remittances and covered by petitioner's purchase invoices marked as Exhibits "B-5", "B-6", "B-22", "B-27", "B-28" ·and "B-38" cannot be allowed for zero-rating of VAT.

Also excluded from the computation were the commission incoae from Exhibits "B- 17" and "B-2G" which al~e not legible. Likewise excluded was Exhibit "B-18", "which has no proof of inward re•ittance.

To recapitulate, therefore, on the first issue, only the sale of securities transactions in the total amount of -P253,712.43 qualified for the zero percent rate of 127

DECISION -

C.T.R. Case No. 4948. - 13 - VAT.

And after applying the formula or computation earlier presented, only the amount of P16,978.G9 maybe allowed as refundable output tax. We now consider the second issue which deals on whether or not the requir~•ents for claim for refund have been complied with by petitioner. It is beyond question, that petitioner is this case has substantiated its claim although only to the limited amount found by this Court as refundable. Related to the second issue is the special and affirmative defense of t~espondent, stating that "petiti~ner must show compliance with the provisions of Section 204 in relation to Section 230 of the National Internal Revenue Code, as amended».

Section 204 of the Tax code speaks of the filing of a written cla~m for refund with the BIR within two years from the date of payments of the tax.

While Section 230 talks of the filing of judicial claim also within two years from the date of of tax.

As We have repeatedly emphasized, in Our decfsions on similar cases/claims for refund of petitioner, involving facts and issues identical to the case at bar, the Court begs to disagree with respondent everytime the latter asserts that the two-year prescriptiv~ period should be counted from the 128

DECISION -

C.T.R. Case No. 4948. - 14 - dates of payment, as mandated by Section 230. consistent with Our stand that it should be Section lOG

(b) which should apply as this case involves refund of VAT on zero-rated sales. Said law provides:

"Section 10&. Rerunds or tax credits or input tax. -

(a) Export Sales. - xxx (b) Zero-rated or effectively zero-rated sales.

Any person, except those covered by paragraph (a) above, whose sales are zero-rated or are effectively zero-rated, may within two years after the close of the quarter when such sales were •ade, apply for the issuance of a tax credit certificate or refund of the input taxes attributable to such input tax has not been applied against output tax."

<Underscoring supplied> Going back to the list of invoices covering purchase of secc..trities, it will be noted that all the payments were made during the first quarter of 1991, that is from January 2, 1991 to March 27, 1991.

For this quarter of payments, the two-year period commenced from April 1, 1991 and expired on March 31, 1993.

The ad•inistrative claim in this case was filed on September 26, 1991, while the judicial claim was filed on 1993.

Obviously, the two dates of filing the clai• were well within the two year prescriptive period of April 1' 1991 to March 31, 1993.

The payments therefore, that were found qualified for zero rate of VAT, did not prescribe. 129

- 15 -

WHEREFORE, in view of all the foregoing, clai• fol~ refund is GRANTED but only in the amount of P16,978.69.

Respondent is hereby ordered to REFUND to petitioner the said amount of P16,978.69 as the latter's erroneous payment of ten percent value added tax for the first quarter of 1991.

WE CONCUR:

GRUBA Judge 130 f __.c- lQ. Q.voc-A_ ERNESTO D. ACOSTA Presiding J1,1dge

- lG - CERTIFICATION I hereby certify that this decision was reached after due consultation among the members of the Court of Tax Appeals in accordance with Section 181 Article VIII of the Constitution.

131 g __ . .i;. €;) ... ~ ERNESTO D. ACOSTA Presiding Judge Court of Tax Appeals