THE Court of Tax Appeals (CTA) dismissed the P39.93-million tax refund claim of Zuellig Pharma Asia Pacific Ltd. Phils. ROHQ. over alleged unutilized input tax attributable to zero-rated sales for 2010, citing lack of jurisdiction.
In a Jan. 21 decision, the CTA, sitting en banc, affirmed the March 9, 2017 decision and May 9, 2017 resolution of its second division which found that Zuellig did not file its petition to the court on time.
“Petitioner presents no new argument to persuade us that it has a meritorious case. It merely reiterates the arguments it raised in its Motion for Reconsideration which have been extensively addressed by this Court in the Assailed Resolution,” the CTA ruled.
According to the National Internal Revenue Code (NIRC) of 1997, a taxpayer claiming a refund must file its administrative claim with the Bureau of Internal Revenue (BIR) within two years after the close of a taxable quarter.
The BIR has 120 days after the taxpayer’s filing of all supporting documents to decide on the claim. However, it can file its judicial claim within 30 days after the expiration of the 120-day period if the bureau fails to act within the prescribed period.
The CTA found that Zuellig failed to comply with the NIRC, filing the petition to the court’s second division on Sept. 25, 2014 when the end of the 120-day period and the 30-day period to file to the CTA was on Dec. 2, 2011.
“Considering all these pronouncements, Petitioner’s judicial claim for the aforementioned quarters was filed way beyond the mandatory 120 + 30 days to seek judicial recourse,” it said.
“Such non-compliance with the said mandatory period of 120 + 30 days is fatal to Petitioner’s claim of refund on the ground of prescription, resulting in the Second Division’s lack of jurisdiction over the said judicial claim,” it added.
The CTA cited a Supreme Court ruling which said that a taxpayer claiming a refund has 30 days from the filing of the complaint in the BIR to submit all the required supporting documents, pursuant to a revenue memorandum circular, for the 120-day period to start. If more documents are needed, the BIR must request the taxpayer to submit it within 30 days.
The court also said that the BIR on June 29, 2011 requested Zuellig to submit more documents which it complied with on July 5 in the same year, which would be the start of the 120-day period. However the company submitted additional documents in 2012 until 2014 without notices from the BIR.
“Evidently, Petitioner belatedly filed its Petition for Review with the Second Division on September 25, 2014. The Court in Division did not acquire jurisdiction,” the court said. — Vann Marlo M. Villegas
