PRHC PROPERTY MANAGERS, INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY SPECIAL FIRST DIVISION ************ PRHC PROPERTY MANAGERS, CTA CASE NO. 7615 INC., Members: Petitioner, ACOSTA, Chairperson -versus- BAUTISTA, and CASANOVA, JJ. COMMISSIONER OF INTERNAL Promulgated: REVENUE, Respondent. AMENDED DECISIO BAUTISTA, J..: For resolution is petitioner's "MOTION FOR RECONSIDERATION" of the Decision dated September 14 2010, filed on September 27, 20101, without respondent's opposition/comment thereto despite notice. The dispositive portion of the assailed Decision is hereunder quoted: WHEREFORE, premises considered, petitioner's claim for refund is hereby DENIED for lack of merit. 1 SO ORDERED. 1 Docket, pp. 464-472 .

AMENDED DECISION CTA CASE NO. 76 15 Page 2 of5 In the Order dated October 14, 2010,2 and as prayed for by petitioner in its Manifestation and Motion dated October 6, 2010, this Court set for hearing petitioner's Motion for Reconsideration on November 4, 2010. Upon termination thereof, petitioner filed on November 10, 2010 its Supplemental Formal Offer of Evidence submitting exhibits "A-MR", " B-MR"I "C-MR"I " D- MR", "E-MR" and " F-MR"; which this Court admitted in the Resolution dated January 5, 2011. In its Motion, petitioner argues that there is no requirement at all for petitioner to prove that it did not carry-over the amount being claimed as refund to the succeeding taxable period . Petitioner concludes that its non- submission of income tax returns for the succeeding quarters and its final adjusted return for the year 2005 is not fatal to the granting of its claim for refund in the amount of P1 ,623,841.00, representing its unutilized creditable taxes withheld at source for the year 2004. In support of its claim, petitioner cited the Supreme Court ruling in the case of Philam Asset Management, Inc. vs. Commissioner of Internal Revenue4, and the erA En Bane cases of Golden Arches Development Corp. vs. Commissioner of Internal Revenue5 and Commissioner of Internal Revenue vs. Golden Arches Development Corp. 6 f 2 Docket, p . 497. 3 Docket, pp. 502-504. 4 G.R. No. 156637/ 162004, December 14,2005. 5 C.T.A. EB Case No. 465, November 26, 2009. 6 C.T.A. EB Case No. 470, November 26, 2009.

AMENDED DECISION CTA CASE NO. 76 15 Page 3 of5 In support of the motion, petitioner presented and formally offered in evidence its Quarterly Income Tax Returns for the firstl, second8 and third quarters9 of taxable year 2005 and Annual Income Tax Return 10 for the same year, in order for this Court to determine whether petitioner carried-over the 2004 excess creditable withholding taxes to the subsequent taxable quarters/year. After a careful evaluation of the arguments and evidence further adduced, this Court hereby reconsiders. A perusal of the aforesaid returns shows that no amount of "Prior Year's Excess Credits"11 was reflected. Therefore, petitioner did not actually carry-over/apply the claimed 2004 excess creditable withholding taxes of P1,(;)23,841.00 against the income tax due for the succeeding quarters/year of 2005. As found by the Court in the Decision dated September 14, 2010, which was based on evidence12 presented, petitioner was able to substantiate the amount of P1,622,883.18, out of the claim of P1,623,841.00, computed as follows: Income Tax Due Per Return p 495 470.00 Less: Tax Credits P2 119 311.00 Creditable Taxes Withheld Per Return Less: Creditable Taxes Withheld Claimed Twice13 957 .82 2 118,353.18 Refu ndable Excess Tax Credits P1, 6 22,883 .18 7 Exhibit "A-MR". ~ 8 Exhibit "B-MR". 9 Exh ibit "C-MR" . 10 Exhibit "0-MR". 11 U ne 29A of Exhibits "A-MR", "B-MR" and "C-MR" ; Line 28A of Exhibit "0-MR" . 12 Page 9 of Decision dated September 14, 2010. 13 Exhibits L-21 and M- 18.

AMENDED DECISION CTACASENO. 76 15 Page 4 of5 WHEREFORE, premises considered, petitioner's "Motion for Reconsideration" is hereby PARTIALLY GRANTED and this Court's Decision dated September 14, 2010 denying petitioner's claim for refund of unutilized creditable withholding taxes is hereby MODIFIED. ACCORDINGLY, respondent Commissioner of Internal Revenue is hereby ORDERED to REFUND or to ISSUE A TAX CREDIT CERTIFICATE in the amount of P1,622,883.18 to petitioner, representing excess creditable withholding taxes for taxable year 2004. SO ORDERED. WE CONCUR: L - t-� c~~ ERNESTO D. ACOSTA Presiding Justice CAESAR~ANOVA Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Amended Decision were reached in

AMENDED DECISION CTA CASE NO. 7615 consultation before the case was assigned to the writer of the opinion of the Court's Division. ~L-. [''---"._ ERNESTO D. ACOSTA Presidi.ng Justice Chairperson, First Division