BPI-Family Savings Bank, Inc. v CA
GR No 122480, April 12, 2000
FACTS:
The case involves a claim for tax refund on the amount of P112,491 representing BPI’s tax withheld for 1989. This was initially filed with the CIR alleging that the company did not apply the 1989 refundable amount to its 1990 Annual Income Tax Return or other tax liabilities due to the alleged business losses it incurred for the same year. But, without waiting for CIR, it filed a petition for review with the CTA which dismissed the petition. Hence, this petition.
ISSUE:
Whether BPI is entitled to the refund
RULING:
Yes. In the present case, the return attached to the company’s motion for reconsideration clearly showed that it suffered a net loss in 1990. Contrary to the holding of the CA and CTA, BPI could not have applied the amount as a tax credit.
When it is undisputed that a taxpayer is entitled to a refund, the State should not invoke technicalities to keep money not belonging to it.
FACTS:
The case involves a claim for tax refund on the amount of P112,491 representing BPI’s tax withheld for 1989. This was initially filed with the CIR alleging that the company did not apply the 1989 refundable amount to its 1990 Annual Income Tax Return or other tax liabilities due to the alleged business losses it incurred for the same year. But, without waiting for CIR, it filed a petition for review with the CTA which dismissed the petition. Hence, this petition.
ISSUE:
Whether BPI is entitled to the refund
RULING:
Yes. In the present case, the return attached to the company’s motion for reconsideration clearly showed that it suffered a net loss in 1990. Contrary to the holding of the CA and CTA, BPI could not have applied the amount as a tax credit.
When it is undisputed that a taxpayer is entitled to a refund, the State should not invoke technicalities to keep money not belonging to it.
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