CTA Case No. 4691 (Decision)

Republic of the Ph i lippines COURT OF TAX APPEALS Quez on City BPI DATA SYSTEKS CORPORATION (former1y Fi1ipinas Kanagement and Leasing Services, Inc.>, Petitioner, - versus - C.T.A. CASE NO. 4691 COKKISSIONER OF INTERNAL REVENUE, Res p on d e nt . X -- - ----------- - --------------- X This case involves a c laim for refund of over paid c r e d i table withhold i ng tax from income payments for calendar year 1989 in the amount of P199 , 255.60. Pe titioner is a corporation organized and exis ting under the laws of the Philippines with address at BPI Building, Ayala Avenue corner Paseo de Roxas, Makati, Metro Manila. On April 16, 1 9 90, pet it ioner filed with the Bureau of Internal Re venue its annual income tax retu r n for 1989 s how i ng a ~ efundable amount of P877 ,857 . 60, c omputed as follows:

- DEC I S I 0 N- C.T.A. Case No. 4691 - 2- Income Schedule 2 - 19,560,000.00 Less: Deductions 20, 134, 621. 00 Net Loss 574.621.00 ----------------- 127.00 6,348.00 Tax Due <568,146.00) Less: a. Prior Years Excess Credit fa 678,602.00 b. Qu r erly Payments made this year c. ) Creditable tax withheld (expanded withholding) rExh . Al 199,255.60 p 877,857.60 Tota Amount Due/Refundable -<-P-8--7-7-.8--5-7-.6--0-) The amount o� ~678,602 .00 prior years ex ~ ess credit is subject o� a separate claim �or re�und pending be�ore this Court by the petitioner which is as follows: Year Included A�ount Being Clai�ed 4530 1988 p 140,020.00 4440 1987 362,617.00 TOTAL p 502,637.00 Less : Amount to be accounted for 678,602.00 Discrepancy p---1-7-5-.-9-6-5-.-0-0 1 1 !) h

- DE C I S I 0 N- C.T.A. Case No. 4691 - 3- The discrep ancy in the a mount of ~175,965.00 was expla ined in CTA Case No. 4440 based on petitioner's Formal Offer of Evidence which is quoted hereto: "Exha. 'A' and 'A - 1' are offered to show that the petitioner filed an income tax return and an amended income ax return for the calendar year 1987, showing a prior years excess credit of ~202,541.00 against wh ich was applied the income tax due for 1987 of P27, 576. 00, leaving a balance of P175,965.00 and that in addition to this balance, the taxpayer also reported creditable taxes withheld in 1987 of ~362,617 . 00 to make a total amount refundable of ~538,582.00, which the taxpayer indicated would be applied as Tax Credit to the succeeding taxable year. In this connection, it was learned that the remaining bal ance of P175,965. 00 has not been judicially claime d. On December 20, 1991, petitioner filed a claim for refund with respondent's Legislative Ruling and Research Division asking for the refund of the re maining ~199,255.60, representi ng alleged excess creditable withholding tax for 1989. Without waiting for respondent's decision, petitioner filed on December 27, 1991, a petition for review before this Court. .,....... I I

- DE C I S I 0 N- C~T.A. Case No. 4691 -4- After a thorough review of the arguments raised by both parties this Court arri~ed with the following findings. In the pr..o..--gess of going over the records of the case, . ~ e Court noted that the 4 1990 Income Tax Return was not presented in evidence by the petitioner. Had i t been presen~ed in evidence, petitioner may have claimed a~ tax credit the amount sought for. Accordingly, since the 1990 Income Tax Return was not presented, it cannot be ascertained .whether tne refundable amount of P199,255.60 was already credited being part of P877,857.60 applied for as tax credit to the succeeding taxable year 1991. There is no way by which this Court can determine how much it is legally e ntitled to. Unfortunately, petitioner fall short in its obligation to submit that vital document which would have worked to his advantage. Failure on the part of the petitioner to sustain his claim is fetal to its cause following the time tested doctrine that claims for refund are construed strictly against claimant <Commission~r of Int~rnal Revenue vs. Ledesma. G.R. No. L - 17509, January 95).~ 30, 1970, 31 SCRA 1156

- DEC I S I 0 N- C;T.A. Case No. 4691 -5- To the Court's mind, granting petitioner's prayer wi ll be a dangerous road to xollow, thus endangering our time tested maxim that justice will be served to anyone who earnestly seek xor it. WHEREFORE- in view of the xoregoi ng, this case is hereby d i am'ssed for lack of merit. SO ORDERED. Quezon City, Me tro Manila , 6 December 1993. GRUBA Judge WE CONCUR: C RTIFICATION I hereby certify that this decision was reached axter due consultation among the members of the Court ox Tax Appeals in accordance with Section 13 Article VIII of the Constitution. ~~~~ ERHESTO D. ACOSTA Presiding Judge Court ox Tax Appeals �