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    CBK Power Co LTD Vs Cir

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    lacbayen
    Petitioner filed claims for tax credit certificates for sales in the 1st, 2nd, and 3rd quarters of 2005. The CTA Division initially ruled the claim for the 1st quarter was timely but the claims for the other quarters were untimely. However, the CTA En Banc reversed and dismissed the entire petition. Section 112 provides a two-year period to apply for tax credits or refunds after the close of the taxable quarter when zero-rated sales were made. As the judicial claim was filed in 2007, over two years after the quarters in question, all claims were belated under the law.

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    CBK Power Co LTD Vs Cir

    Uploaded by

    lacbayen
    417 views1 page
    Petitioner filed claims for tax credit certificates for sales in the 1st, 2nd, and 3rd quarters of 2005. The CTA Division initially ruled the claim for the 1st quarter was timely but the claims for the other quarters were untimely. However, the CTA En Banc reversed and dismissed the entire petition. Section 112 provides a two-year period to apply for tax credits or refunds after the close of the taxable quarter when zero-rated sales were made. As the judicial claim was filed in 2007, over two years after the quarters in question, all claims were belated under the law.

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    CBK Power Co Ltd vs CIR case digest

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    Cbk Power Co Ltd vs Cir

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    Petitioner filed claims for tax credit certificates for sales in the 1st, 2nd, and 3rd quarters of 2005. The CTA Division initially ruled the claim for the 1st quarter was timely but the claims for the other quarters were untimely. However, the CTA En Banc reversed and dismissed the entire petition. Section 112 provides a two-year period to apply for tax credits or refunds after the close of the taxable quarter when zero-rated sales were made. As the judicial claim was filed in 2007, over two years after the quarters in question, all claims were belated under the law.

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    417 views1 page

    CBK Power Co LTD Vs Cir

    Uploaded by

    lacbayen
    Petitioner filed claims for tax credit certificates for sales in the 1st, 2nd, and 3rd quarters of 2005. The CTA Division initially ruled the claim for the 1st quarter was timely but the claims for the other quarters were untimely. However, the CTA En Banc reversed and dismissed the entire petition. Section 112 provides a two-year period to apply for tax credits or refunds after the close of the taxable quarter when zero-rated sales were made. As the judicial claim was filed in 2007, over two years after the quarters in question, all claims were belated under the law.

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    of 1

    LAW TACKLED: Section 112.

    Refunds of Tax Credits of Input Taxes (A) Zero Rated or


    Effectively Zero-Rated Sales

    DOCTRINE DISCUSSED: Tax Refund; Tax Credit; Section 112(A) provides that after
    the close of the taxable quarter when the sales were made, there is a two-year
    prescriptive period within which a VAT-registered person whose sales are zero-rated or
    effectively zero-rated may apply for the issuance of a tax credit certificate or refund of
    creditable input tax

    FACTS: Petitioner who is engaged in the operation, maintenance, and management of


    a pumped-storage hydroelectric power plant filed an Application for VAT Zero-Rate with
    the BIR. The application was duly approved. Thus, petitioners sale of electricity was
    declared to be entitled to the benefit of effectively zero-rated value added tax (VAT).
    Petitioner filed its administrative claims for the issuance of tax credit certificates for the
    1st quarter of 2005, filed on June 30 2005, 2nd quarter of 2005, September 15, 2005
    and 3rd quarter of 2005, October 28, 2005. Alleging inaction of the Commissioner of
    Internal Revenue (CIR), petitioner filed a Petition for Review with the CTA on 18 April
    2007.

    CTA 2ND DIVISION RULING: Accordingly, petitioner timely filed its administrative claims
    for the three quarters of 2005. However, considering that the judicial claim was filed on
    18 April 2007, the CTA Division denied the claim for the first quarter of 2005 for having
    been filed out of time.

    CTA EN BANC RULING: CTA En Banc ruled that petitioners judicial claim for the first,
    second, and third quarters of 2005 were belatedly filed. The CTA Special Second
    Division Decision and Resolution were reversed and set aside, and the Petition for
    Review filed in CTA Case No. 7621 was dismissed. Petitioners Motion for
    Reconsideration was likewise denied for lack of merit.

    ISSUE: Whether or not CBK Power may claim for the issuance of tax credit certificates.

    HELD: No. Section 112(A) provides that after the close of the taxable quarter when the
    sales were made, there is a two-year prescriptive period within which a VAT-registered
    person whose sales are zero-rated or effectively zero-rated may apply for the issuance
    of a tax credit certificate or refund of creditable input tax.

    Our VAT Law provides for a mechanism that would allow VAT-registered persons to
    recover the excess input taxes over the output taxes they had paid in relation to their
    sales. For the refund or credit of excess or unutilized input tax, Section 112 is the
    governing law. Given the distinctive nature of creditable input tax, the law under Section
    112 (A) provides for a different reckoning point for the two-year prescriptive period,
    specifically for the refund or credit of that tax only.

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