Court of Tax Appeals · Second Division
0PRHC Property Managers, Inc. vs. Commissioner of Internal Revenue
Republic of the Philippines
COURT OF TAX APPEALS
Quezon City
SECOND DIVISION
PRHC PROPERTY MANAGERS,
CTA CASE NO. 8071
INC.,
Petitioner,
For: Refund of unutilized creditable
withholding tax
-versus-
Present:
CASTANEDA, JR., Chairperson
CASANOVA, and
MINDARO-GRULLA, JJ.
COMMISSIONER OF INTERNAL
REVENUE,
Respondent.
Promulgated:
JAN 0 6 2D12
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DECISION
MINDARO-GRULLA, {:
This is a Petition for Review filed on April 13, 2010 by PRHC Property Managers, Inc., as petitioner, against the Commissioner of Internal Revenue (CIR) as respondent, for the Court in Division, pursuant to Section 7 (a) (2) of Republic Act (RA) No. 1125, An Act Creating the Court of Tax Appeals, as amended 1, as well as Rule 4, Section 3 (a) (2), in( Sec. 7. Jurisdiction. -The CT A shall exercise:
(a) Exclusive appellate jurisdiction to review by appeal, as herein provided:
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(2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, PRHC Property Managers, Inc. v. CIR relation to Rule 8, Section 4(a), of the Revised Rules of the Court of Tax Appeals (RRCTA)2. It involves a claim for refund of the amount of( where the National Internal Revenue Code provides a specific period for action, in which case the inaction shall be deemed a denial;
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Rule 4. Sec. 3. Cases within the jurisdiction of the Court in Division. - The Court in Division shall exercise:
(a) Exclusive original over or appellate jurisdiction to review by appeal the following :
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(2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue, where the National Internal Revenue Code or other applicable law provides a specific period for action: Provided, that in case of disputed assessments, the inaction of the Commissioner of Internal Revenue within the one hundred eighty day-period under Section 228 of the National Internal Revenue Code shall be deemed a denial for purposes of allowing the taxpayer to appeal his case to the Court and does not necessarily constitute a formal decision of the Commissioner of Internal Revenue on the tax case; Provided, further, that should the taxpayer opt to await the final decision of the Commissioner of Internal Revenue on the disputed assessments beyond the one hundred eighty day-period abovementioned, the taxpayer may appeal such final decision to the Court under Section 3(a), Rule 8 of these Rules; and Provided, still further, that in the case of claims for refund of taxes erroneously or illegally collected, the taxpayer must file a petition for review with the Court prior to the expiration of the two-year period under Section 229 of the National Internal Revenue Code;
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Rule 8. Sec. 4. Where to appeal,· mode of appeal. -
(a) An Appeal from a decision or ruling or the inaction of the Commissioner of Internal Revenue on disputed assessments or claim for refund of internal revenue taxes erroneously or illegally collected; the decision or ruling of the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade & Industry, the Secretary of Agriculture, and the Regional Trial Court in the exercise of their original jurisdiction, shall be taken to the Court by filing before it a petition for review as provided in Rule 42 of the Rules of Court. The Court in Division shall act on the appeal.
PRHC Property Managers, Inc. v. CIR
P1 ,928,458.00, representing unutilized creditable withholding tax (CWT) for the taxable year ending December 31, 2007. Petitioner PRHC Property Managers, Inc. is a corporation organized under Philippine laws and is engaged in the business of managing, operating, administering, maintaining, servicing, buying, leasing or selling real and/or personal properties either for itself or for others.
Respondent, on the other hand, is the duly appointed Commissioner of the Bureau of Internal Revenue (BIR), authorized and empowered by the National Internal Revenue Code (NIRC) of 1997 to decide and approve claims for refund of internal revenue taxes. On April 15, 2008, petitioner filed with the Bureau of Internal Revenue its Annual Income Tax Return (ITR) for the taxable year ending December 31, 2007, which showed a taxable income of P1 ,091,805.00 and a corresponding tax due in the amount of P382, 132.00.3 In the same Annual ITR, petitioner reported the amount of P1 ,434,076.00 as its creditable taxes withheld for the first three quarters,£ 3 Exhibit "E".
PRHC Property Managers, Inc. v. CIR as well as the creditable taxes withheld for the fourth quarter in the amount of P494,382.00, or a total of P1 ,928,458.00, to wit:
Tax Credits/Payments
Add: Creditable Tax Withheld for the
First Three Quarters
p 1 ,434,076.00
Add: Creditable Tax Withheld for the
Fourth Quarter
494,382.00
Total Tax Credits/Payments
p 1 ,928,458.00 Petitioner likewise indicated its intention not to carry over its excess/unutilized creditable withholding taxes by marking the box "To be refunded" in Line 31 of said ITR.
On November 4, 2008, petitioner filed a letter with BIR Revenue District Office (ROO) No. 43 requesting the refund of its unutilized creditable taxes withheld at source for taxable year 2007 in the amount of P1 ,928,458.00.4 However, to date, respondent has neither denied nor approved petitioner's administrative claim for refund. Hence, petitioner filed the instant Petition for Review on April 13, 2010. On June 8, 2010, respondent filed her Answer5 raising the following
Special and Affirmative Defenses:
"4. Claims for refund are strictly construed against the taxpayer as the same partakes the nature of tax exemption; ' 4 Exhibits "B" and "C".
s Docket, pp. 73-75.
PRHC Property Managers, Inc. v. CIR
5. The taxpayer has the burden to show that the taxes were erroneously or illegally paid. Failure on the part of the Petitioner to prove the same is fatal to its cause of action;
6. Petitioner failed to substantiate by documentary evidence its claim for refund;
7. The Petitioner must prove that the amount of creditable withholding VAT being claimed as refund was not utilized;
8. The Petitioner should prove its legal basis for claiming the amount being refunded."
Upon approval by the Court of the "Joint Stipulation of Facts" filed by both parties, pre-trial was deemed terminated. Trial ensued during which petitioner presented its only witness, Ma. Theresa L. Kampitan.
On December 8, 2010, petitioner filed its Formal Offer of Evidence without respondent's comment. This Court in its Resolution dated February 2, 2011 admitted Exhibits "A" to "J-1 ", "L" to "Z-1 ", "AA" to "ZZ-1 ", "AAA" to "ZZZ-1", "AAAA" to "XXXX-1", "ZZZZ", "ZZZZ-1", "GGGGG", "GGGGG-1", "GGGGG-4", "HHHHH", "HHHHH-1", "IIIII", "11111-1", "JJJJJ", "JJJJJ-1", "KKKKK", "KKKKK-1", "LLLLL" and "LLLLL-1", inclusive of sub- markings, and thereafter, petitioner was deemed to have formally rested its case.
The documentary evidence formally offered and admitted are as follows:( PRHC Property Managers, Inc. v. CIR
Exhibits
Description
A
Articles of Incorporation of PRHC Property Managers, Inc.
B
PRHC Property Managers, Inc. letter dated October 23, 2008 addressed to the Bureau of Internal Revenue
B-1
Receiving Stamp of BIR ROO No. 43-Pasig City dated November 4, 2008
B-2
Signature of Miguel R. Ortigas, Jr.
C
BIR Form No. 1914 Application for Tax Credits/Refunds of PRHC Property Managers, Inc.
in the amount of P1 ,928,458.00
C-1
Signature of Miguel Ortigas, Jr.
0
PRHC
Property
Managers, Inc.
Certificate
of Registration issued by the Bureau of Internal Revenue
E
Annual
Income
Tax
Return of PRHC
Property
Managers, Inc. for the calendar year ended 12/2007 consisting of three (3) pages
E-1
Receiving Stamp of BIR ROO No. 43 Pasig City dated April 15, 2008
E-2
The check mark on the box To be refunded on Line 31
E-3
Line 23 on Income Tax in the amount of P382, 132
E-4
Line 28A on Prior Year's Excess Credit in the amount of P4,843,309
E-5
Line 28C on Creditable Tax for the First Three Quarters in the amount of P1 ,434,076
E-6
Line 280 on Creditable Tax Withheld for the Fourth Quarter in the amount of P494,382
E-7
Line 29 on Tax Payment (Overpayment) in the amount of P6,389,635.00
E-8
Line 121 Signature of Miguel Ortigas, Jr.
E-9
PRHC Property Managers, Inc. Schedule of Taxes and Licenses for the year ended December 31 , 2007 with the receiving stamp of BIR ROO No. 43 Pasig City dated April 15, 2008
F
Report of Independent Auditors to Accompany Income
Tax Returns with the Audited Financial Statements for ~ PRHC Property Managers, Inc. v. CIR the year ending December 31 , 2007 consisting of twenty-nine (29) pages
F-1
Receiving Stamp of SIR ROO No. 43 Pasig City dated April 15, 2008
G
PRHC Property Managers, Inc. Summary of Alphalist of
Withholding Agents of Income Payments Subjected to
Withholding Tax at Source (SAWT) from 10-01-2007 to 12-31-2007 with receiving stamp of SIR ROO No. 43 Pasig City dated April 15, 2008
H
Form 1702Q of PRHC Property Managers, Inc. for the 3rd quarter of taxable year 2007
H-1
Receiving Stamp of SIR ROO No. 43 Pasig City dated November 28, 2007 Form 1702Q of PRHC Property Managers, Inc. for the 2nd quarter of taxable year 2007 1-1 Receiving Stamp of SIR ROO No. 43 Pasig City dated August 28, 2007
J
Form 1702Q of PRHC Property Managers, Inc. for the 1st quarter of taxable year 2007
J-1
Receiving Stamp of SIR ROO No. 43 Pasig City dated May 29, 2007
L
Judicial Affidavit executed on August 3, 2010 consisting of five (5) pages
L-1
Signature of Tess Kampitan
M
Certificate of Creditable Tax Withheld at Source by
Avalon
Condominium
Corp.
for
PRHC
Property
Managers, Inc. for the period 10-01-2007 to 12-31 -2007
M-1
The amount of P4,218.75
N
Certificate of Creditable Tax Withheld at Source by
Banco de Oro-EPCI, Inc. for PRHC Property Managers, Inc. for the period 01 -01 -2007 to 12-31 -2007
N-1
The amount of P21 ,780.94 0
Certificate of Creditable Tax Withheld at Source by
Broadford Property Holdings, Inc. for PRHC Property Managers, Inc. for the period 12-31-2007 0-1 The amount of P2,363.20
P
Certificate of Creditable Tax Withheld at Source by
Casa Miguel Condominium Corp. for PRHC Property Managers, Inc. for the period 10-01-2007 to 12-31-2007 { PRHC Property Managers, Inc. v. CIR
P-1
The amount of P1 ,993.02
Q
Certificate of Creditable Tax Withheld at Source by First Balfour, Inc. for PRHC Property Managers, Inc. for the period 10-01 -2007 to 12-31 -2007
Q-1
TheamountofP15,541.24
R
Certificate of Creditable Tax Withheld at Source by
Frankfort
Property
Leasing
for
PRHC
Property
Managers, Inc. for the period 10-01-2007 to 10-31 -2007
R-1
The amount of P150.00
S
Certificate of Creditable Tax Withheld at Source by
Frankfort
Property
Leasing
for
PRHC
Property
Managers, Inc. for the period 11-01-2007 to 11-30-2007
S-1
The amount of P150.00
T
Certificate of Creditable Tax Withheld at Source by
Frankfort
Property
Leasing
for
PRHC
Property
Managers, Inc. for the period 12-01-2007 to 12-31 -2007
T-1
The amount ofP150.00
U
Certificate of Creditable Tax Withheld at Source by
Greenhills
Properties, Inc.
for
PRHC
Property
Managers, Inc. for the period 10-01-2007 to 12-31 -2007
U-1
The amount of P24,688.79
V
Certificate of Creditable Tax Withheld at Source by LTA Condominium Corp. for PRHC Property Managers, Inc. for the period 10-31-2007 to 12-31 -2007
V-1
The amount of P24,806.25
W
Certificate of Creditable Tax Withheld at Source by
The Nobel Plaza Condominium Corp. for PRHC Property Managers, Inc. for the period 10-01 -2007 to 12-31 -2007
W-1
The amount of P17,668.26
X
Certificate of Creditable Tax Withheld at Source by One Wilson Place Condominium Corp. for PRHC Property Managers, Inc. for the period 10-31-2007 to 12-31 -2007
X-1
The amount of P736.60
Y
Certificate of Creditable Tax Withheld at Source by
Philippine Amusement Enterprises, Inc. for PRHC Property Managers, Inc. for the period 11-22-2007 to 12-31-2007, PRHC Property Managers, Inc. v. CIR
Y -1
The amount of P2, 100.00
Z
Certificate of Creditable Tax Withheld at Source by
Philippine Realty and Holdings Corporation for PRHC
Property Managers, Inc. for the period 10-01 -2007 to 12-31-2007
Z-1
The amount of P9,434.73
AA
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRCH Property Managers, Inc. for the period 10-01- 2007 to 10-31-2007
AA-1
The amount of P89,482.50
BB
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 11-01 - 2007 to 11-30-2007
BB-1
The amount ofP89,107.50
CC
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 12-01- 2007 to 12-31-2007
CC-1
The amount of P89, 107.50
DO
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 10-01-2007 to 10-31 -2007 00-1 The amount of PBO 1.43
EE
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 11-01 -2007 to 11-30-2007
EE-1
The amount of P801.43
FF
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 12-01-2007 to 12-31 -2007
FF-1
The amount of P801.43
GG
Certificate of Creditable Tax Withheld at Source by
Summit Securities, Inc. for PRHC Property Managers, Inc. for the period 12-01-2007 to 12-31-2007
GG-1
The amount of P4,368.004 PRHC Property Managers, Inc. v. CIR
HH
Certificate of Creditable Tax Withheld at Source by The
Makati Tuscany Condominium for PRHC Property
Managers, Inc. for the period 10-01 -2007 to 10-31-2007
HH-1
The amount of P24,404.49
II
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 11-01-2007 to 11-30-2007 11-1 The amount of P5,445.00
JJ
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 11-01-2007 to 11-30-2007
JJ-1
The amount of P18,959.49
KK
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 12-01-2007 to 12-31 -2007
KK-1
The amount of P5,445.00
LL
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 12-01-2007 to 12-31 -2007
LL-1
The amount ofP18,959.49
MM
Certificate of Creditable Tax Withheld at Source by The Pearl Plaza, Inc. for PRHC Property Managers, Inc. for the period 10-01 -2007 to 12-31 -2007
MM-1
The amount of P7,758.58
NN
Certificate of Creditable Tax Withheld at Source by The Pinnacle Condominium Corp. for PRHC Property Managers, Inc. for the period 10-01 -2007 to 12-31 -2007
NN-1
The amount of P11 ,250.00 00 Certificate of Creditable Tax Withheld at Source by UDB
International
Holdings, Inc.
for
PRHC
Property
Managers, Inc. for the period 10-01-2007 to 10-31-2007 00-1 The amount of P1 ,890.00
PP
Certificate of Creditable Tax Withheld at Source by
Avalon
Condominium
Corp. for
PRHC
Property
Managers, Inc. for the period 07-01 -2007 to 09-31 -2007
PP-1
The amount of P4,084.83( PRHC Property Managers, Inc. v. CIR
QQ-1
RR
RR-1
ss
SS-1
TT
TT-1
uu
UU-1
w
W-1
ww
WW-1
XX
XX-1
yy
YY-1
Certificate of Creditable Tax Withheld at Source by
Casa Miguel Condominium Corp. for PRHC Property Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P4, 167.21
Certificate of Creditable Tax Withheld at Source by
Epsys, Inc. for PRHC Property Managers, Inc. for the period 07-01-2007 to 09-30-2007 The amount of P11 ,863.66
Certificate of Creditable Tax Withheld at Source by
Frankfort
Property
Leasing
for
PRHC
Property
Managers, Inc. for the period 08-01 -2007 to 08-31 -2007 The amount of P150.00
Certificate of Creditable Tax Withheld at Source by
Frankport
Property
Leasing
for
PRHC
Property
Managers, Inc. for the period 09-01-2007 to 09-30-2007 The amount of P150.00
Certificate of Creditable Tax Withheld at Source by
Greenhills
Properties, Inc.
for
PRHC
Property
Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P26,781 .29 Certificate of Creditable Tax Withheld at Source by LTA Condominium Corp. for for PRHC Property Managers, Inc. for the period 07-31 -2007 to 09-30-2007 The amount of P24,806.25 Certificate of Creditable Tax Withheld at Source by The Nobel Plaza Condominium Corp. for PRHC Property Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P17,668.26 Certificate of Creditable Tax Withheld at Source by One Wilson Place Condominium Corp. for PRHC Property Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P977.68
Certificate of Creditable Tax Withheld at Source by
Philippine Realty Holdings Corporation for PRHC
Property Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P8,779.80£ PRHC Property Managers, Inc. v. CIR zz
ZZ-1
AAA
AAA-1
BBB
BBB-1
CCC
CCC-1
DOD
DDD-1
EEE
EEE-1
FFF
FFF-1
GGG
GGG-1
HHH
HHH-1
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 07-01 - 2007 to 07-31-2007 The amount of P89,482.50
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium for
PRHC Property Managers, Inc. for the period 08-01 - 2007 to 08-31-2007 The amount of P89,482.50
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 09-01 - 2007 to 09-30-2007 The amount of P89,482.50
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 09-01 -2007 to 09-30-2007 The amount of P801.43
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 08-01 -2007 to 08-31 -2007 The amount of P801.43
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 07-01 -2007 to 07-31 -2007 The amount of P801.43
Certificate of Creditable Tax Withheld at Source by
Secaucus Development Corp. for PRHC Property Managers, Inc. for the period 03-01 -2007 to 03-31 -2007 The amount of P6,549.11 Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 07-01-2007 to 07-31 -2007 The amount of P24,404.49 Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 08-01 -2007 to 08-31-2007 The amount of P24,404.49c PRHC Property Managers, Inc. v. CIR
Ill
111-1
JJJ
JJJ-1
KKK
KKK-1
LLL
LLL-1
MMM
MMM-1
NNN
NNN-1
000 000-1 ppp
PPP-1
QQQ
QQQ-1
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 09-01 -2007 to 09-30-2007 The amount of P24,404.49 Certificate of Creditable Tax Withheld at Source by The Pearl Plaza, Inc. for PRHC Property Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P7,778.58 Certificate of Creditable Tax Withheld at Source by The Pinnacle Condominium Corp. for PRHC Property Managers, Inc. for the period 07-01 -2007 to 09-30-2007 The amount of P11 ,250.00
Certificate of Creditable Tax Withheld at Source by
Avalon
Condominium
Corp.
for
PRHC
Property
Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P4,017.87
Certificate of Creditable Tax Withheld at Source by
Campershells, Inc. for PRHC Property Managers, Inc. for the period 05-01 -2007 to 05-31 -2007 The amount of P18, 130.58
Certificate of Creditable Tax Withheld at Source by
Casa Miguel Condominium Corp. for PRHC Property Managers, Inc. for the period 04-01 -2007 to 06-30-2007 The amount ofP3,019.72
Certificate of Creditable Tax Withheld at Source by
Epsys, Inc. for PRHC Property Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P17,795.40 Certificate of Creditable Tax withheld at Source by Equitable PCI Bank for PRHC Property Managers, Inc. for the period 04-01 -2007 to 06-30-2007 The amount of P4,050.00
Certificate of Creditable Tax Withheld at Source by
Frankfort
Property
Leasing
for
PRHC
Property
Managers, Inc. for the period 05-01 -2007 to 05-31 -2007 The amount of P750.00( PRHC Property Managers, Inc. v. CIR
RRR
RRR-1
sss
SSS-1
TTT
TTT-1
uuu
UUU-1
vw
VW-1
www
WWW-1
XXX
XXX-1
yyy
YYY-1
zzz
ZZZ-1
Certificate of Creditable Tax Withheld at Source by
Greenhills
Properties, Inc.
for
PRHC
Property
Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P24,688.79 Certificate of Creditable Tax Withheld at Source by LTA Condominium Corp. for PRHC Property Managers, Inc. for the period 04-30-2007 to 06-30-2007 The amount of P24,806.25 Certificate of Creditable Tax Withheld at Source by The Nobel Plaza Condominium Corp. for PRHC Property Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P17 ,668.26 Certificate of Creditable Tax Withheld at Source by One Wilson Place Condominium Corp. for PRHC Property Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P803.57
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 04-01 - 2007 to 04-30-2007 The amount of P86,250.00
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 05-01 - 2007 to 05-31-2007 The amount of P89,482.50
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 06-01 - 2007 to 06-30-2007 The amount of P89,482.50
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 05-01 -2007 to 05-31 -2007 The amount of P3,278.57
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 06-01 -2007 to 06-30-2007 The amount of P801.43t PRHC Property Managers, Inc. v. CIR
AAAA
AAAA-1
BBBB
BBBB-1
ecce
CCCC-1
DODD
DDDD-1
EEEE
EEEE-1
FFFF
FFFF-1
GGGG
GGGG-1
HHHH
HHHH-1
II II
1111-1
Certificate of Creditable Tax Withheld at Source by
Philippine Realty and Holdings Corporation for Property
Managers, Inc. for PRHC Property Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P8,691 .15 Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 04-01 -2007 to 04-30-2007 The amount of P24,404.49 Certificate of Creditable Tax Withheld at Source by The
Makati Tuscany Condominium Corporation for PRHC
Property Managers, Inc. for the period 05-01 -2007 to 05-31-2007 The amount of P24,404.49 Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 06-01 -2007 to 06-30-2007 The amount of P24,404.49 Certificate of Creditable Tax Withheld at Source by The Pearl Plaza, Inc. for PRHC Property Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P7,778.58 Certificate of Creditable Tax Withheld at Source by The Pinnacle Condominium Corp. for PRHC Property Managers, Inc. for the period 04-01-2007 to 06-30-2007 The amount of P11 ,250.00
Certificate of Creditable Tax Withheld at Source by
Avalon
Condominium
Corp.
for
PRHC
Property
Managers, Inc. for the period 01 -01 -2007 to 03-31-2007 The amount of P4,017.86
Certificate of Creditable Tax Withheld at Source by
Casa Miguel Condominium Corp. for PRHC Property Managers, Inc. for the period 01-01 -2007 to 03-31 -2007 The amount of P3,019.71
Certificate of Creditable Tax Withheld at Source by
Epsys, Inc. for PRHC Property Managers, Inc. for the period 01 -01-2007 to 03-31 -2007 The amount of P17,795.40( PRHC Property Managers, Inc. v. CIR
JJJJ
JJJJ-1
KKKK
KKKK-1
LLLL
LLLL-1
MMMM
MMMM-1
NNNN
NNNN-1
0000 0000-1 pppp
PPPP-1
QQQQ
QQQQ-1
RRRR
RRRR-1
Certificate of Creditable Tax Withheld at Source by
Equitable PCI Bank for PRHC Property Managers, Inc. for the period 01-01 -2007 to 03-31 -2007 The amount of P4,050.00
Certificate of Creditable Tax Withheld at Source by
Greenhills
Properties, Inc.
for
PRHC
Property
Managers, Inc. for the period 01-01 -2007 to 03-31 -2007 The amount of P34,655.00 Certificate of Creditable Tax Withheld at Source by LTA Condominium Corp. for PRHC Property Managers, Inc. for the period 01-31 -2007 to 03-31 -2007 The amount of P24,806.25 Certificate of Creditable Tax Withheld at Source by The Nobel Plaza Condominium Corp. for PRHC Property Managers, Inc. for the period 01-01 -2007 to 03-31 -2007 The amount ofP17,107.35 Certificate of Creditable Tax Withheld at Source by One Wilson Place Condominium Corp. for PRHC Property Managers, Inc. for the period 01-01-2007 to 03-31-2007 The amount of P1 , 785.71 Certificate of Creditable Tax Withheld at Source by PAE Ventures, Inc. for PRHC Property Managers, Inc. for the period 03-28-2007 The amount of P2, 100.00
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 01-01 - 2007 to 01-31 -2007 The amount of P89,250.00
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 02-01 - 2007 to 02-28-2007 The amount of P89,250.00
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange Centre Condominium Corp. for PRHC Property Managers, Inc. for the period 03-01 - 2007 to 03-31 -2007 The amount of P89 , 250 . 00~ PRHC Property Managers, Inc. v. CIR
SSSS
Certificate of Creditable Tax Withheld at Source by
Philippine Stock Exchange, Inc. for PRHC Property Managers, Inc. for the period 01 -01 -2007 to 01 -31 -2007
SSSS-1
The amount of P728.57
TTTT
Certificate of Creditable Tax Withheld at Source by
Philippine Realty and Holdings Corporation for PRHC
Property Managers. Inc. for the period 01 -01 -2007 to 03-31 -2007
TTTT-1
The amount of P8,987.58
UUUU
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 01 -01 -2007 to 01 -31 -2007
UUUU-1
The amount of P23,909.49
WVV
Certificate of Creditable Tax Withheld at Source by The Makati Tuscany Condominium Corp. for PRHC Property Managers, Inc. for the period 02-01 -2007 to 02-28-2007
WVV-1
The amount of P24,899.49
WWWW
Certificate of Creditable Tax Withheld at Source by The Pearl Plaza, Inc. for PRHC Property Managers, Inc. for the period 01-31 -2007 to 03-31 -2007
WWWW-1
The amount of P7,778.58
XXXX
Certificate of Creditable Tax Withheld at Source by The Pinnacle Condominium Corp. for PRHC Property Managers, Inc. for the period 01 -01 -2007 to 03-31-2007
XXXX-1
The amount of P11 ,250.00
ZZZZ
Annual
Income
Tax
Return of PRHC
Property
Managers, Inc. for the calendar year ended 12/2008 consisting of three (3) pages
ZZZZ-1
Receiving Stamp of SIR ROO No. 43A Pasig City dated April 15, 2009
GGGGG
Annual
Income
Tax
Return of PRHC
Property
Managers, Inc. for the calendar year ended 12/2008 consisting of three (3) pages
GGGGG-1
Receiving Stamp of SIR ROO No. 43 Pasig City dated April 15, 2009
GGGGG-4
Line 30A of SIR Form No. 1702 as Prior Year's Excess Credits other than MCIT in the amount of P4,461 .177
HHHHH
Form 1702Q of PRHC Property Managers, Inc. for the 3rd quarter of taxable year 2008' PRHC Property Managers, Inc. v. CIR
HHHHH-1
IIIII
11111-1
JJJJJ
JJJJJ-1
KKKKK
KKKKK-1
LLLLL
LLLLL-1
Receiving Stamp of BIR ROO No. 43 Pasig City dated November 26, 2008 Form 1702Q of PRHC Property Managers, Inc. for the 2nd quarter of taxable year 2008 Receiving Stamp of BIR ROO No. 43 Pasig City dated August 28, 2008 Form No. 1702Q of PRHC Property Manager's Inc. for the 151 quarter of the taxable year 2008 Receiving Stamp of BIR ROO No. 43 Pasig City dated May 30, 2008 Supplemental Judicial Affidavit of Ma.Theresa L.
Kampitan dated 30 September 2010 consisting of eleven ( 11) pages Signature of Ma. Theresa L. Kampitan Second Supplemental Judicial Affidavit of Ma. Theresa L. Kampitan dated October 27, 2010 consisting of three
(3) pages Signature of Ma. Theresa L. Kampitan Initial presentation of respondent's evidence was set on March 7, 2011 and March 28, 2011. On the latter date, respondent's counsel manifested that there is as yet no Final Report on the audit examination conducted on the petitioner, thus, the parties were ordered by the Court to file their respective Memorandum. On April 27, 2011 , petitioner complied with the same; while respondent failed to file her Memorandum despite notice.
Hence, in a Resolution dated May 1 0, 2011 , the instant case was considered submitted for decision.( PRHC Property Managers, Inc. v. CIR
The parties submitted the following issues6 for this Court's resolution:
"1. WHETHER OR NOT PETITIONER HAS AN OVERPAYMENT IN THE AMOUNT OF P1 ,928,458.00 REPRESENTING ITS
UNUTILIZED CREDITABLE TAXES WITHHELD AT SOURCE
FOR THE TAXABLE YEAR 2007.
II. WHETHER OR NOT THE INCOME UPON WHICH THE
TAXES WERE WITHHELD FOR THE TAXABLE YEAR 2007
WERE INCLUDED IN THE INCOME TAX RETURN OF
PETITIONER FOR THE YEAR 2007.
Ill. WHETHER
OR
NOT
PETITIONER'S
UNUTILIZED
CREDITABLE TAXES WITHHELD AT SOURCE IN THE
AMOUNT OF P1 ,928,458.00 FOR THE TAXABLE YEAR 2007 IS SUBSTANTIATED BY DOCUMENTARY EVIDENCE. IV. WHETHER OR NOT PETITIONER IS ENTITLED TO THE
REFUND
OF
THE
AMOUNT
OF
P1 ,928,458.00
REPRESENTING ITS UNUTILIZED CREDITABLE TAXES
WITHHELD AT SOURCE FOR THE YEAR 2007." The main issue is whether petitioner is entitled to a refund of its unutilized creditable withholding taxes for the taxable year 2007 in the amount of P1 ,928,458.00.
Section 76 of the NIRC of 1997, as amended, provides that the corporate taxpayer's excess tax credits or overpaid income tax in a given taxable year may either be refunded (in the form of cash or tax credit < 6 Docket, pp. 95-96.
PRHC Property Managers, Inc. v. CIR certificate) or carried over and applied to the succeeding taxable quarters or years, to wit:
"SEC. 76. Final Adjustment Return. - Every corporation liable to tax under Section 27 shall file a final adjustment return covering the total taxable income for the preceding calendar or fiscal year. If the sum of the quarterly tax payments made during the said taxable year is not equal to the total tax due on the entire taxable income of that year, the corporation shall either:
(A)
Pay the balance of tax still due; or
(B)
Carry-over the excess credit; or
(C)
Be credited or refunded with the excess amount paid, as the case may be.
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."
Pursuant to this provision, petitioner's excess creditable withholding tax for the taxable year 2007 in the amount of P1 ,928,458.00 appears to be refundable considering that petitioner firmly signified its intention to claim for refund by marking the box "To be refunded" in its Annual Income Tax Return for the taxable year 2007.7 C 7 Exhibit "E".
PRHC Property Managers, Inc. v. CIR
Moreover, petitioner did not carry over any amount of the subject claim in its succeeding Quarterly Income Tax Returns8 and Annual Income Tax Return9 for the taxable year 2008 since the amount of "Prior Year's Excess Credits" reflected in the said returns pertains only to its excess tax credits as of December 31 , 2006.
However, for a taxpayer to be entitled to a refund or issuance of tax credit certificate for excess creditable withholding tax at source, it must satisfy the following requisites:
1. The claim must be filed with the Cl R within the two-year period from the date of payment of the tax;
2. It must be 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 must be established by a copy of a statement duly issued by the payor to the payee showing the amount paid and the amount of the tax withheld.1o As to the first requisite, Section 229 of the NIRC of 1997 provides for the reckoning point of the two-year prescriptive period, to wit: "SEC. 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' a Exhibits "HHHHH" to "JJJJJ".
9 Exhibit "GGGGG".
10 Banco Ftlipino Savings and Mortgage Bank vs. Court of Appeals, Court of Tax Appeals and Commissioner of Internal Revenue, G.R. No. 155682, March 27, 2007.
PRHC Property Managers, Inc. v. CIR 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." (Emphasis supplied) Clearly, the reckoning of the two-year prescriptive period for the filing of a claim for refund/tax credit of excess CWT/quarterly income tax payments starts from the date of filing of the Annual Income Tax Return because it is only from this time that the refund is ascertained.11 In the instant case, petitioner filed its Annual Income Tax Return for the taxable year 2007 on April 15, 2008. Counting from this date, petitioner had until April 15, 201 0 within which to file its claim for refund, both administratively and judicially. Therefore, petitioner's administrative claim for refund filed on November 4, 200812 and the Petition for Review filed on April 13, 201 0, fall within the two-year period prescribed under Section 229 of the NIRC of 1997.( 11 Commissioner of Internal Revenue vs. The Philippine American Life Insurance Co,. eta/., G.R. No. 105208, May 29, 1995.
12 Exhibits "B" and "C".
PRHC Property Managers, Inc. v. CIR
In compliance with the second requisite, petitioner presented various Certificates of Creditable Tax Withheld at Source13 duly issued by its clients/affiliates for the taxable year 2007 and Summary of Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source for each of the four quarters of 2007, showing total CWT amounting to P1 ,928,459.67, broken down as follows:
Taxable Year
Per Summary
2007
Attached to
CWT
1st Quarter
Exhibit "J"
p 479,045.48 2nd Quarter Exhibit "1", 485,958.64 3rd Quarter
Exhibit "H"
469,071 .93 4th Quarter
Exhibit "G"
494,383.62
Total
p 1,928,459.67 However, this Court finds that only the amount of P1 ,904,055.18 is properly substantiated with Certificates of Creditable Tax Withheld at Source, detailed as follows:
Exhibit
Withholding Agent
Income Payment
CWT
Payments for Professional Fees
"M"
Avalon Condominium Corporation
p 42,187.50 p 4,218.75
"P"
Casa Miquel Condo. Corp.
13,286.73 1,993.02
"U"
Greenhills Properties Inc.
246,887.73 24,688.79
"V"
L T A Condo. Corp.
165,375.00 24,806.25
"W"
The Nobel Plaza Condo. Corp.
117,788.37 17,668.26
"Z"
Philippine Realty & Holdinqs Corp. 94,347.30 9,434.73
"AA"
Philippine Stock Exchange Centre
596,550.00 89,482.50
"BB"
Philippine Stock Exchange Centre
594,050.00 89,107.50
"CC"
Philippine Stock Exchanqe Centre
594,050.00 89,107.50
"MM"
The Pearl Plaza, Inc.
77,785.71 7,778.58 13 Exhibits "M" to "XXXX".
PRHC Property Managers, Inc. v. CIR
"NN"
The Pinnacle Condo. Corp.
"PP"
Avalon Condominium Corporation
"QQ"
Casa Miguel Condo. Corp.
"UU"
Greenhills Properties Inc.
"VV"
L T A Condo. Corp.
"WW"
The Nobel Plaza Condo. Corp.
"YY"
Philippine Realty & Holdings Corp. "ll"
Philippine Stock Exchange Centre
''AAA''
Philippine Stock Exchange Centre
"BBB"
Philippine Stock Exchange Centre
"JJJ"
The Pearl Plaza, Inc.
"KKK"
The Pinnacle Condo. Corp.
"LLL"
Avalon Condominium Corporation
"NNN"
Casa Miguel Condo. Corp.
"PPP"
Equitable PCI Bank
"RRR"
Greenhills Properties Inc.
"SSS"
L T A Condo. Corp.
"TTT"
The Nobel Plaza Condo. Corp.
"VVV"
Philippine Stock Exchange Centre
"WWW"
Philippine Stock Exchange Centre
''XXX''
Philippine Stock Exchange Centre
''AAAA''
Philippine Realty & Holdings Corp.
"EEEE"
The Pearl Plaza, Inc.
"FFFF"
The Pinnacle Condo. Corp.
"GGGG"
Avalon Condominium Corporation
"HHHH"
Casa Miguel Condo. Corp.
"JJJJ"
Equitable PCI Bank
"KKKK"
Greenhills Properties Inc.
"LLLL"
L T A Condo. Corp.
"MMMM"
The Nobel Plaza Condo. Corp.
"PPPP"
Philippine Stock Exchange Centre
"QQQQ"
Philippine Stock Exchange Centre
"RRRR"
Philippine Stock Exchange Centre
"TTTT"
Philippine Realty & Holdings Corp.
"WWWW"
The Pearl Plaza, Inc.
II )()()()(II
The Pinnacle Condo. Corp.
Payments for Commissions
"N"
Banco De Oro -EPCI ,Inc.
"0"
Broadford Property Holdings
"R"
Frankfort Property Leasing
"S"
Frankfort Property Leasing
"T"
Frankfort Property Leasing
nyu
Philippine Amusement Enterprise
"GG"
Summit Securities Inc.
"00" UDB International Holdings, Inc.
Page24of29
75,000.00 11 ,250.00 40,848.22 4,084.83 27,781 .34 4,167.21 246,887.73 24,688.79 165,375.00 24,806.25 117,788.37 17,668.26 87,798.00 8,779.80 596,550.00 89,482.50 596,550.00 89,482.50 596,550.00 89,482.50 77,785.71 7,778.58 75,000.00 11,250.00 40,178.58 4,017.87 20,131.45 3,019.72 27,000.00 4,050.00 246,887.73 24,688.79 165,375.00 24,806.25 117,788.37 17,668.26 575,000.00 86,250.00 596,550.00 89,482.50 596,550.00 89,482.50 86,911.50 8,691.15 77,758.71 7,778.58 75,000.00 11 ,250.00 40,178.58 4,017.86 20,131.44 3,019.71 27,000.00 4,050.00 246,887.70 24,688.77 165,375.00 24,806.25 114,049.02 17,107.35 595,000.00 89,250.00 595,000.00 89,250.00 595,000.00 89,250.00 89,875.81 8,987.58 77,785.71 7,778.58 75,000.00 11 ,250.00 p 10,512,637.31 p 1 ,485,848.82 p 141,309.40 p 14,130.94 23,632.00 2,363.20 3,000.00 150.00 3,000.00 150.00 3,000.00 150.00 21,000.00 2,100.00 43,680.00 4,368.00 18,900.00 1,890.00 PRHC Property Managers, Inc. v. CIR
"SS"
Frankfort Property LeasinQ
"TT"
Frankfort Property Leasing
"UU"
Greenhills Properties Inc.
"FFF"
Secaucus Development Corp.
"MMM"
Campershells, Inc.
"QQQ"
Frankfort Property LeasinQ
"KKKK"
Greenhills Properties Inc.
"0000" PAE Ventures, Inc.
p
Payments for Management and Technical Consultanc 1 Fees
"N"
Banco De Oro -EPCI,Inc.
p
"HH"
The Makati Tuscany Condo. Corp.
"II"
The Makati Tuscany Condo. Corp.
"JJ"
The Makati Tuscany Condo. Corp.
"KK"
The Makati Tuscany Condo. Corp.
"LL"
The Makati Tuscany Condo. Corp.
"GGG"
The Makati Tuscany Condo. Corp.
"HHH"
The Makati Tuscany Condo. Corp.
"Ill"
The Makati Tuscany Condo. Corp.
"BBBB"
The Makati Tuscany Condo. Corp.
"CCCC"
The Makati Tuscany Condo. Corp.
"DODD"
The Makati Tuscany Condo. Corp.
"UUUU"
The Makati Tuscany Condo. Corp.
"VWV"
The Makati Tuscany Condo. Corp.
p
Payments to Prime Contractors/Sub-Contractors
"X"
One Wilson Place Condo. Corp.
p
"EE"
Philippine Stock Exchange Inc.
"FF"
Philippine Stock Exchange Inc.
"XX"
One Wilson Place Condo. Corp.
"UUU"
One Wilson Place Condo. Corp.
"NNNN"
One Wilson Place Condo. Corp.
"SSSS"
Philippine Stock Exchange Inc.
p 3,000.00 3,000.00 20,925.00 65,491 .07 181 ,305.80 15,000.00 99,662.30 21,000.00 666,905.57 51,000.00 162,696.60 36,300.00 126,396.60 36,300.00 126,396.60 162,696.60 162,696.60 162,696.60 162,696.60 162,696.60 162,696.60 159,396.60 165,996.60 1 ,840,662.60 49,500.00 40,071 .43 40,071.43 46,500.00 45,000.00 100,000.00 36,428.57 357,571 .43 Payments made by top 10,000 corporations to their local supplier of services
"DO"
Philippine Stock Exchanr:~e Inc.
p 40,071.43
"CCC"
Philippine Stock Exchanr:~e Inc.
40,071.43
"ODD"
Philippine Stock Exchange Inc.
40,071.43
"EEE"
Philippine Stock Exchange Inc.
40,071.43
"YYY"
Philippine Stock Exchange Inc.
163,928.57
"ZZZ"
Philippine Stock Exchanr:~e Inc.
40,071.43 p 364,285.72
Page25of29
150.00 150.00 2,092.50 6,549.11 18,130.58 750.00 9,966.23 2,100.00 p 65,190.56 p 7,650.00 24,404.49 5,445.00 18,959.49 5,445.00 18,959.49 24,404.49 24,404.49 24,404.49 24,404.49 24,404.49 24,404.49 23,909.49 24,899.49 p 276,099.39 p 736.60 801.43 801.43 977.68 803.57 1,785.71 728.57 p 6,634.99 p 801.43 801.43 801.43 801.43 3,278.57 801.43 p 7,285.72 PRHC Property Managers, Inc. v. CIR
Payments for Rentals of Real/Personal Properties
"Q"
First Balfour, Inc.
"RR"
EPSYS Incorporated
"000"
EPSYS Incorporated
"II II"
EPSYS Incorporated
TOTAL
p p p
Page26of29
310,824.79 p 15,541 .24 237,273.20 11 ,863.66 355,908.00 17,795.40 355,908.00 17,795.40 1 ,259,913.99 p 62,995.70 15,001 ,976.62 p 1,904,055.18 Anent the third requisite, a perusal of the withholding tax certificates revealed that out of the CWT of P1 ,904,055.18, the amount of ~1 ,841 ,059.48 was withheld from petitioner's sales of services in the amount of ~13,742 , 062.63; while the remaining amount of ~62,995.70 was withheld from petitioner's rental income in the amount of P1 ,259,913.99, broken down as follows:
Amount of
Amount of CWT
Nature of Income
Income
Sales of Services
Professional Fees
p 10,512,637.31 p 1 ,485,848.82
Commissions
666,905.57 65,190.56
Management & Technical Consultancy Fees
1,840,662.60 276,099.39
Payments to Prime Contractors/Subcontractors
357,571.43 6,634.99 Payments made by Top 1 0,000 corporation to their local supplier of services 364,285.72 7,285.72
Subtotal
p 13,7 42,062.63 p 1,841 ,059.48
Rentals
1 ,259,913.99 62,995.70
Total
p 15,001,976.62 p 1,904,055.18 In its 2007 Annual Income Tax Return 14, petitioner reflected the following gross income:~ 14 Exhibit "E".
PRHC Property Managers, Inc. v. CIR
Nature of Income
Sale of Services
Non-Operating and Taxable Other Income
Rental Income
Gain on Sale
Others
Subtotal
Total
Page27of29
Amount of Income
p 18,575,913.00 p 1,259,912.00 75,000.00 772,004.00 p 2,106,916.00 p 20,682,829.00 Evidently, petitioner declared in its 2007 Annual Income Tax Return the income payment from rentals in the amount of P1 ,259,913.99 (save for the minor difference of P1.99) upon which the claimed creditable taxes of P62,995.70 were withheld.
However, as to petitioner's income payments from sales of services, there is a discrepancy between the gross income of P18,575,913.00 reflected per petitioner's Annual Income Tax Return vis-a-vis the gross income of P13,7 42,062.63 shown per Certificates of Creditable Tax Withheld.
Moreover, petitioner failed to present documentary proofs, such as, but not limited to, detailed general ledger, sales journal, reconciliation schedules, sales invoices/receipts or any other document whereby the Court can verify the discrepancy and that the income payments of P13, 7 42,062.63 related to the claimed creditable withholding taxes of P1 ,841,059.48 formed part of the P18,575,913.00 gross income declared in its 2007 Annual Income Tax Return.<.
PRHC Property Managers, Inc. v. CIR
In sum, petitioner sufficiently complied with the three requisites for refund of excess CWT only to the extent of P62,995. 70 out of the total claimed CWT of P1 ,928,458.00.
But considering that petitioner had an income tax liability for 2007 in the amount of P382, 132.0015 and failed to substantiate its prior year's excess credits of P4,843,309.00, the CWT of P62,995.70 shall be applied against the income tax due of P382, 132.00. Since the income tax due of P382, 132.00 is greater than the claimed CWT of P62,995.70, there is no excess CWT for taxable year 2007 which may be refunded.
WHEREFORE, premises considered, the instant Petition for Review is hereby DENIED for lack of merit.
SO ORDERED.
WE CONCUR:
~~C- . ~~~· JiJANITO C. CASTANEDfi:, JR.
Associate Justice
15 Exhibit "E", line 27.
(ll,tJ:; ~- M·~ .. c~ ..
CIELITO N. MINDARO-GRULLA
Associate Justice
#- CAESAR A. CASANOVA
Associate Justice
PRHC Property Managers, Inc. v. CIR
ATTESTATION
I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division.
~h>C.~~.Q .fUANITO C. CASTANEDA,~R.'
Associate Justice
Chairperson
CERTIFICATION
Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. ~~~~ ERNESTO D. ACOSTA