TUTUBAN PROPERTIES, INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Coon of Tax Appeals QUEZON CITY FORMER SECOND DIVISION TUTUBAN PROPERTIES , INC ., C .T .A . CASE NO . 7634 Petitioner, Members : - versus - CASTANEDA, JR. , Chairperson UY, and PALANCA-ENRIQUEZ, JJ. COMMISSIONER OF INTERNAL Promulgated : REVENU E, Respondent. MAY 1 1 2010~ . .. . 7 .L : l7 X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ! ""' - - - - - - X AMENDED DECISION CASTANEDA, JR. , J. : For resolution is petitioner's Motion for Reconsideration filed on February 3, 2010, praying for the reconsideration of this Court's Decision dated January 8, 2010 and for the refund or issuance of tax credit certificate in favor of petitioner in the amount of P984 ,375.00, representing the Expanded Withholding Taxes (EWT) erroneously remitted to the Bureau of Internal Revenue. After taking into consideration the arguments of petitioner and after veri fying the records of the case , this Court finds merit in petitioner's motion. Petitioner was able to present the original copies and the faithful reproductions of the certified true copies of Philippine National Railways 'F - 48 4

AMEN DED DEC ISION C.T.A . CASE NO. 7634 Page 2 or4 (PNR) Annual Income Tax Return (BIR Form No. 1702 ) for calendar years 1 2005 and 2006 . From said evidence , this Court was able to validate that fact that there was no double utili zation of the claimed EWT. However, as ruled by this Court in the assailed Decision , the amount of double remittance is P95 3,23 0.31 only , as against petitioner's claim of P984,375.00 , computed as follows : · r-· -- ·- Janu ary 2005 February 2005 Marc h 2005 April 2005 Total Due to PNR -------- - - - - - - - - - Fixed Cha rg es P6,562,500 .00 P6 ,562,500. 00 P6,562,500.00 P6 ,562,500.00 p 26,250,000.00 Add: 2% share -- ____7]3 ,554 §~ -~~9..:.lll_ 75 5,636 .88 816,998 .10 3,027,409.84 - Total Charges . __ £'!2~6 . Q_!?_~.i_ _ £'7 ,283 ,719 92 P7,318,136.88 P7,379 ,498.10 p 29 ,277 ,409 .84 x EWT Rate 5% 5% 5% 5% Total EWT Du e p 364,802.75 p 364,186.00 p 36 5,906.84 p 368,974.90 p 1,463 ,870.49 Less : EWT Remitted 37 1,807 .69 364 ,186.00 328,125.00 1,3 52 ,982.11 2,41 7,100.80 Under (Over) Remittance p (7 ,004 .94) - p 37 ,781.84 p (984 ,007 .21) p (953 ,230.31) Whil e petitioner had over-remitted the EWT on the fi xed component portion of the rental due to PNR by P984 ,37 5.00 , it has under-remitted the EWT on the variable component of the rental (i.e ., 2% share in gross income) by P31 , 144 .69, detailed as follows __ J a n ~~y 20_Q_~ -- __ __£ ebruary 200_? March 2005 April 2005 Total Variable per CPA's findings p 733,554.94 p 721,219 .92 p 755 ,636 .88 p 816 ,998.10 P3,027, 409.84 Variab le per Return 873 ,653 .70 721 ,220 .00 809 ,642 .20 2,404 ,515.90 (140,098.76) (0.08) 755,636.88 7,355.90 622 ,893.94 x EWT Rate 5% 5% 5% 5% Under (Over) Remittance __ _ !:____17,004 .94) _ ______!:_ (O.OO) __ c _ __ p - 37 ,781 .84 p 367 .79 p 31 ,144.69 Thus , petitioner is only entitled to a refund or issuance of tax credit certificate in the redu ced amount of P953,23 0.31_ WHEREFORE , prem1ses consid ered , petitioner's Motion for Reconsideration 1s hereby PARTIALLY GRANTED and the Decision dated ~ 1 Exhibits ·'AA ··. ·' AA- 1" , '·B B ... and '' BB - 1·· 48 5

AMEN DED DEC ISION C.T.A. CASE NO. 7634 Page 3 of'4 January 8, 2010 is hereby MODIFIED . Accordingly , respondent is hereby ORDERED TO REFUND or TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of NINE HUNDRED FIFTY-THREE THOUSAND TWO HUNDRED THIRTY PESOS AND 31/100 (P953 ,230 .31) , representing the Expanded Withholding Taxes erroneously remitted by petitioner. SO ORDER ED. a~~~c.~~/Q... J(jA.NITO C . CASTANEDA , ~·.· Associate Justice WE CONCUR : ~ -~~~- Y OLGA PALANCA-ENRIQUEZ Associate Justice ATTESTATION I attest that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division . Associate Justice Chairperson 48 G

AMEN DED DEC ISION C.T.A. CASE NO. 7634 Page 4 ol' 4 CERTIFICATION Pursuant to Article VI II , Section 13 of the Constitution , and the Division Chairperson 's Attestation , it is hereby certified that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. C(~ IS· a~ ERNESTO D. ACOSTA Presiding Justice