March 2011 Philippine Supreme Court Decisions on Tax Law

Here are selected March 2011 rulings of the Supreme Court of the Philippines on tax law:

National Internal Revenue Code; irrevocability of option to carry-over excess income tax payments; utilization of excess income tax payments. In the previous decision, the Court denied taxpayer’s claim for refund because it has earlier opted to carry over its 1997 excess income tax payments by marking the tax credit option box in its 1997 income tax return. However, while taxpayer may no longer file a claim for refund, it properly carried over its 1997 excess income tax payments by applying portions thereof to its 1998 and 1999 minimum corporate income tax. Taxpayer may apply the unutilized excess income tax payments as a tax credit to the succeeding taxable years until fully utilized. Belle Corporation vs. Commissioner of Internal Revenue, G.R. No. 181298, March 2, 2011.

Rules of Court; motion to withdraw petition before Supreme Court; effect on Court of Tax Appeals decision. Under Section 1, Rule 13 of the Internal Rules of the Supreme Court a case is deemed submitted for decision or resolution upon the filing of the last pleasing, brief or memorandum that the Court or its Rules require. In this case, the Court required petitioner taxpayer to file a reply; however, petitioner taxpayer opted to file a motion to withdraw. Clearly, by requiring petitioner taxpayer to file its reply, the Court has not yet deemed the case submitted for decision or resolution. The Court granted petitioner taxpayer’s motion to withdraw. By withdrawing the appeal, petitioner taxpayer is deemed to have accepted the decision of the Court of Tax Appeals (CTA). And since the CTA had already denied petitioner taxpayer’s request for the issuance of a tax credit certificate for insufficiency of evidence, it may no longer be included in petitioner taxpayer’s future claims. Petitioner taxpayer cannot be allowed to circumvent the denial of its request for a tax credit by abandoning its appeal and filing a new claim. As stated in a previous case, n appellant who withdraws his appeal must face the consequences of his withdrawal, such as the decision of the court a quo becoming final and executory. Central Luzon Drug Corporation vs. Commissioner of Internal Revenue, G.R. No. 181371, March 2, 2011.

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