CTA Case No. 3780 (Decision)

/ REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUE ZON CITY INVESTORS FINANCE CORPORATIONS ( FCNB Finance) ~ Petitioner~ C.T.A. CASE NO. 3780 COMMISSIONER OF INTERNAL REVENUE, Respondent. -� �- �- - - - ,\.1, DEC I s I DN 'fhi !:.; case is a simple claim r�efund in v olving overpaid income tax for taxable year 1982 in the amount of P1~660~184.32. It a ppears from the records that for the t<.~ >: ab 1 r:: ye.;u- end inq December- 20 ~ 1982 ~ peti tionet- Finance domestic c:o t�pot.. a tion duly ot- gan i zed under� the Phi 1 i ppine filed on Apr-il .7 1983 its Corporate Annual I, Incom e Ta;-: F:-.:eturn s howinq a l'�e fundable amo unt of P1,453~288 .4 8. 1984~ i t a mended said by deducting addi tion<.:"\1 1dthholding ta >: c t�-e dits of P206~895.84 to ~-eflect a n increase in the refundable ta x in the total a mount of F'1,660~l84.32, the subject of the c l aim Said refundab l e amount is com ptute d as �fo 11 m'-ls :

DECISION CTA CASE NO. 3780 - 2- Tax due per return P 179~ ~ d/. ~ O Total creditab le ta:-:es withheld _L+.. ,..Jl1Q.,;I,Zl...!....~.~-1 Overpayment On April 23~ 1984, petitioner, through its external auditor SGV & CO.~ filed a formal claim for refund. To cia te ~ the ,,..es ponden t ~ Commissioner of In ter-n a 1 F\evenue ~ has not granted said claim for refund. Hence, this present Petition for Review. The only issue presented in this case is whether or not petitioner has in fact overpaid its income tax for the taxable year 1982. Petitioner~ on his part~ presented the corr-esponding Quarterly and Annual Income Tax Returns, Certificates of Tax Withheld at Source and Central Bank Confirmation Receipts to prove its claim for refund. Respondent on his part did not present any testimonial nor documentary r2vi dences to dispr�ove this claim but merely admitted, denied and objected to some documents either for lack of information, as mere opinion on t he part of petitioner~ hearsay and self-serving. As can be shown by the documents and evidences presented dur� ing the hearing ;:md a dmit ted by this petitioner is trying � to prove a total refundable amount of F'1,660,184.32 which coniist 4R4

DEC I S ION CTA CASE NO. 3 780 - 3- mainly of excess creditable withholding tax. However~ petitioner merely produced exhibits evidencing withholding to a total of P927~892 . 46 with the following breakdown: G, G-.1 to G-57 ; Statement or P602,097.11 G- 61 to G-67; Certificate H, H-1 to H-58 of Ta:< Withheld (B I R Form 1743) H- 55- b to I-43 Central Bank 287~547.96 Confirmation Receipts Certification by 38,247.39 Withho l ding Agent and other second- ary evidence Total E:.9..:.;;.?..!L~.9..;:;. ~ .1-l.?.. An analysis of the exhibits shows that not all have probative value. The statement of withholding tax covered by E x hibit s G- 5 4 , H-52, H- 5 3 & H-5 4 in the total amount of P5,086.35 should be excluded as the recipient named in the statement is not the pet.i. tioner but, other entities. All the Cen t ral Bank confirmations receipts (Exhs. H- 55 to 1-43) s hould like~J ise be excluded as i t fai l ed to prove for- ~~hat kind of tax payment those receipts were issued. Other evidences such as the BIR Tax payment order accompanying all CB Confirmation r-eceipts or the corresponding vii th holding tax

DE C I S I O N CTA CAS E NO . 3 780 - 4- r-eturns indicating the inclusion of the petitioner- 's v-Ji thholding ta:-: should have been presented. Further�more, E}:hibi ts Q 8( T covering certi f .ications of vJi thholding taxes in the total amount of P5~689.57 should also be excluded because they may have been included already as part of Exhs. H- 51 and N~ Certification of withholding taxes iss ued respective l y by Group Developers, Inc. and Perla Campania de Seguros. So that, under the third type of exhibits only Exhibits M~ N, 0, P, S, l.J and W in the tota 1 amount of P32, 557.82 ha�-.re evidentiary value. Thus, the allowable creditable withholding tax should on 1 y be P629, 568. 58, recomputed as fo 1 J � !S : Total amount of Exhs. P927,892.46 pt- esented Less: E:-:hs. G- 54, H - 52~ H- 53 8; H- 54 p 5,086.35 H-55 to I-43 287,547.96 Q 8.( T .......... -~~-~1?..~~--~.I Creditable withholding tax Accordingly~ the refun d able amount is likewise reduced as follows : Tax Due Per Return P179,987.00 Less: Creditable ......f:>..'?..9.. !1.. ~.~-�..~...~�. Wi thho 1 ding Ta:-: Refund~b l e Amount WHEREFORE, respondent i s he re by orderP~ t o

// DECISION CTA CASE NO. 3780 - 5- refund or issue the corresponding tax credit certificate to petitioner in the amount of P449 ~ 581.58 pursuant to Section 292 (now Section 230) of the National Internal Revenue Code. No pronouncement as to costs. SO ORDERED. Quezon City~ Metro Manila~ October 22~ 1991. <;,._.~ Q .. ~ ... ERNESTO D. ACOSTA Associate Judge WE CONCUR: ~~ Judge CONS � ROAQUIN ~sociate Judge CERTIFICATION I hereby certify that this dec ision was reached after due consultation among the members of the Court of Ta}: Appeals in accordance with Section 13~ Article VIII of the Constitution. Presiding Judge Court of Tax Appeals