PBCom v CIR
GR No 112024, January 28, 1999
FACTS:
PBCom filed its quarterly income tax returns for the first and second quarters of 1985, reported profits and paid the total income tax of P5,016,954. But, PBCom suffered net losses at the end of the year 1985 in the amount of P25,317,288 and P14,129,602 at the end of 1986. But during these two years, PBCom earned rental income from leased properties. The lessees withheld and remitted to the BIR withholding creditable taxes in 1985 and 1986. On August 7, 1987, petitioner requested the CIR for a tax credit of P5,016,954 representing overpayment of taxes. Thereafter, petitioner filed claim for refund of creditable taxes.
ISSUES:
1. Whether PBCom is entitled to the tax refund 2. Whether the action has prescribed
RULING:
1. No. The corporation must signify in its annual corporate adjustment return its intention whether to request for a refund or claim for an automatic tax credit for the succeeding taxable year. That the petitioner opted for an automatic tax credit, his choice precludes the other.
2. The action has prescribed. The prescriptive period per Section 230 of the 1977 NIRC is 2 years and must be followed notwithstanding the RMC 7-85 which changed the prescriptive period of 2 years to 10 years. Such clear inconsistency legislated guidelines contrary to the statute passed by Congress.
GR No 112024, January 28, 1999
FACTS:
PBCom filed its quarterly income tax returns for the first and second quarters of 1985, reported profits and paid the total income tax of P5,016,954. But, PBCom suffered net losses at the end of the year 1985 in the amount of P25,317,288 and P14,129,602 at the end of 1986. But during these two years, PBCom earned rental income from leased properties. The lessees withheld and remitted to the BIR withholding creditable taxes in 1985 and 1986. On August 7, 1987, petitioner requested the CIR for a tax credit of P5,016,954 representing overpayment of taxes. Thereafter, petitioner filed claim for refund of creditable taxes.
ISSUES:
1. Whether PBCom is entitled to the tax refund 2. Whether the action has prescribed
RULING:
1. No. The corporation must signify in its annual corporate adjustment return its intention whether to request for a refund or claim for an automatic tax credit for the succeeding taxable year. That the petitioner opted for an automatic tax credit, his choice precludes the other.
2. The action has prescribed. The prescriptive period per Section 230 of the 1977 NIRC is 2 years and must be followed notwithstanding the RMC 7-85 which changed the prescriptive period of 2 years to 10 years. Such clear inconsistency legislated guidelines contrary to the statute passed by Congress.
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