Case Digests - page 7

FACTS: Respondent secured the services of Mitsubishi Corporation of Japan but opted not to immediately pay the VAT component of the progress billings from Mitsubishi for the period covering 07 April 1993 to 06 September 1996. It was only on 14 April 1998 when respondent paid Mitsubishi the VAT component for said progress billings. On 25 August 1998, it filed its quarterly VAT return for the second quarter of 1998 where it reflected an input VAT, including that which was paid on 14 April 1998. On 20 December 1999, respondent filed an administrative claim for refund of unutilized input VAT.…

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FACTS:Respondent is a servicing unit of American Express International, Inc. – Hongkong Branch (AmEx-HK) and is engaged primarily to facilitate the collections of AmEx-HK receivables from card members situated in the Philippines and payments to service establishments in the country. On 23 March 1999, it amended its quarterly VAT returns for the period January to December 1997. On 13 April 1999, it filed with the BIR a letter-request for the refund of its 1997 excess input taxes. ISSUE(S):Whether or not petitioner’s sale of service is VAT zero-rated. HELD:YES. Respondent met all three requirements for exemption from the destination rule. Its…

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FACTS:Petitioner, a domestic corporation registered as an Ecozone Export Enterprise at the Rio Tuba Export Processing Zone, filed on 05 August 2003 its Amended VAT Return declaring unutilized input tax from its domestic purchases of capital goods, other than capital goods and services, for the third and fourth quarters of 2002. On 14 June 2004, it filed with the BIR its Application for Tax Credits/Refund together with supporting documents. Due to the alleged inaction of the respondent, petitioner elevated its claim to the CTA on 08 July 2004 by petition for review. The CTA in Division however on 10 March…

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FACTS: Respondent is a domestic corporation whose principal office is located at the Special Export Processing Zone, Laguna Technopark, Biñan, Laguna. On 11 November 1998, it filed two separate applications for tax credit/refund of VAT input taxes paid for the period January to March 1997 and April to June 1997, respectively. ISSUE(S): Whether or not respondent is entitled to the refund or issuance of tax credit certificate for unutilized input taxes paid on domestic purchase of capital goods and services for the period covering January to June 1997. HELD: YES. While an ecozone is geographically within the Philippines, it is…

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FACTS:In response to reports of smuggling of petroleum and petroleum products and to ensure the correct taxes are paid and collected, petitioner Secretary of Finance – pursuant to his authority to interpret tax laws and upon the recommendation of petitioner Commissioner of Internal Revenue signed RR 2-2012 on 17 February 2012. The RR requires the payment of VAT and excise tax on the imporation of all petroleum and petroleum products coming directly from abroad and brought into the Philippines, including the freeport and economic zones (FEZs). It then allows the credit or refund of any VAT or excise tax paid…

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FACTS: Respondent is a resident foreign corporation registered in and operating from the Philippine Export Zone Authority (PEZA) to engage in the manufacture of recording components primarily used in computers for export. On 04 October 1999, it filed an administrative claim for refund of VAT input taxes covered by its VAT returns for the period 01 April 1998 to 30 June 1999. The CIR did not act upon said administrative claim, prompting respondent to elevate the case to the CTA. ISSUE(S): Whether or not respondent is not subject to VAT and therefore entitled to refund or credit for VAT taxes…

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FACTS: Upon finding some discrepancies between MEDICARD’s Income Tax Returns (ITR) and VAT Returns, the CIR issued a Preliminary Assessment Notice (PAN) against MEDICARD for deficiency VAT. It posited the taxable base of HMOs for VAT purposes is its gross receipts without any deduction under Section 4.108.3(k) of Revenue Regulation (RR) No. 16-2005. MEDICARD ratiocinated that under its contract with its corporate clients, it expressly provides that 20% of the membership fees per individual, regardless of the amount involved, already includes the VAT of 10%/20% excluding the remaining 80% because MEDICARD would earmark this latter portion for medical utilization of…

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FACTS: Respondents SM Prime Holdings, Inc. (SM Prime) and First Asia Realty Development Corporation (First Asia) are domestic corporations engaged in the business of operating cinema houses, among others. On various years, the BIR issued a Preliminary Assessment Notice (PAN) for deficiency VAT on cinema ticket sales against SM Prime (for taxable year 2000) and First Asia (for taxable years 1999, 2000, 2002 and 2003). ISSUE(S): Whether or not the gross receipts derived by operators or proprietors of cinema/theater houses from admission tickets are subject to VAT. HELD: NO. When the VAT law was implemented, it exempted persons subject to…

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FACTS: In 1998, the CIR issued a Letter of Authority authorizing the examination of respondent’s books of accounts and other accounting records regarding revenue taxes for “the period 1997 and unverified prior years.” CIR disallowed Sony’s input VAT credits that should have been realized from the latter’s advertising expense on the ground that said expense was reimbursed by Sony International Singapore (SIS) in a form of a subsidy. The disallowance resulted in a deficiency VAT assessment. ISSUE(S): Whether or not there was a sale, barter or exchange between Sony and SIS. HELD: NO. There must be a sale, barter or exchange…

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