Power firm loses P560-m tax refund

Manila Standard Today

By Rey. E. Requejo  Posted on Mar. 04, 2013 at 12:01am

The Supreme Court has turned down San Roque Power Corp.’s claim for a P560-million tax refund arising from its unused input value-added tax on the purchase of capital goods and services in 2001.

The high court found for the Bureau of Internal Revenue and reversed the earlier rulings of the Court of Tax Appeals granting San Roque’s claim on an adjusted amount of P483,797,5499.

The Court said San Roque lost its right to a refund when it prematurely filed its claim with the Court of Tax Appeals in April 2003 even before Internal Revenue could resolve its application for a tax refund.

The Court said the Tax Code gave Internal Revenue  tribunal 120 days to resolve claims for tax refunds or credits before claimants could file an appeal with the

Court of Tax Appeals within 30 days from receipt of an unfavorable ruling from the bureau.

San Roque, an energy distributor based in San Manuel town in Pangasinan, filed its amended administrative claim with Internal Revenue on April 10, 2003.

Just 13 days later, it filed a petition for  review with the Court of Tax Appeals questioning the bureau’s alleged inaction on its claim.

“Clearly, San Roque failed to comply with the 120-day waiting period, the time expressly given by law to the Commissioner to decide whether to grant or deny San Roque’s application for tax refund or credit,” the Court said in its decision written by Senior Associate Justice Antonio Carpio.

Eight other justices concurred with the ruling: Associate Justices Teresita Leonardo-de Castro, Arturo Brion, Diosdado Peralta, Lucas Bersamin, Mariano del Castillo, Roberto Abad, Martin Villarama Jr., Jose Perez, Bienvenido Reyes and Marvic Leonen.

Chief Justice Maria Lourdes Sereno and Associate Justices Presbitero Velasco Jr., Jose Mendoza and Estela Perlas-Bernabe dissented.

Two other tax claims were consolidated in this case where the majority of the justices also denied the tax refund claim of Philex Mining Corp. amounting to P23,956,732.44, although it granted the petition for a tax refund from Taganito Mining Corp. worth P8,365,664.38.   source