CTA Case No. 4947 (Decision)

ANSCOR HAGEDORN C.T_A_ CASE NO_ 4947 SECURITIES. INC., ~Petitioner, COMMI SSIO.tlER OF INTERNAL REVENUE, =~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - v~~ DECISION 192

DECISIOIJ- -2- C.I.A. CASE IJO. 4947 P17,110,912.00 Income 1q.o2q. 11q.oo Less: Deductions Net Incorne <P t91e).267.oo) Tax Due Nil Less: (a) Prior Year's Excess Credit (b) Quarterly 604.405.46 ( 927.72 1.74) Payment; 1st Quarter t.alance of Tax Due (P 927,721.74) Less: Tax Credit TOTi�.L AMOUNT DUEiREFUNDABLE 11.76).)6 .-.L... [.~..�'i] Ti.) be Applied as Tax Credit to Succeeding TaxaNe Year For the first quart?r ending March .30, 1990, petitioner paid tlle quarterly incc�me tax of P604,405.46 (Exlls. A-1, A-2 and J.A.-.3) and the sum of P 11,76.356 was wit.llheW by various withholding agents from petitioner repre!:;ent.ing ~Yt of the corporatk:rn commercial brol~ers fees paid in the t,:)t...a.l amount of Pi.35,47l.15 (Exlls. A-5 and D). Petitioner induded as part of its refundable income t:.t.x the amount of P.32.3,.316.2�3, representing . prior ye;=J_r�s ( 19()9) excess credit. Thus, petitioner's 1990 Income Tai~ Return showed a total refundable amount of P959,485..30. .Petitic:rner, however, indicated in it~: return that it ~llil1 apply said anK.lunt as tax credit to the succeeding taxable year ( 1991 ). On l!l..pril 2. 1992, petitioner through its auclitors filed a claim for refund \�\'itll the respondent in the arnount. � of P616,169.02. representing alleged overpaid income tax for tlle !lear 1990, computed ;:_t.s follov�ls: 193

DECISIOli - 1 1 } -~ -~ f~ } .~=; C.I.A. CASE NO. 4947 )...,. J, I .�. - - �.� -3- P6l6. 169.02 Total Refundable Amount per 199i.) ,t.,nnua1 Return Le::s: 19t�9 ezce~:;s c:rec!it su.J)1ect to a.notlwr cl::1.im for rdu.nd Actual Refundable amount A ::;eparat.e claim for refund and petition for revieV�l (CTA Ca::;e No. 47(3.6) iNas filed by petitioner witll respect bits 1939 Hence, this petitL:.;n, filed cin January 22, 1993, is now lirnit&d to the claim for refund of .F�616. 169.02, representing overpai(l incon1e taxes for the year 1990. Only the fiEt quarter payrnent for 1990 in the t}(l 1 .c-.:1rl���1.,..�..,~-,.1. !�1.t... ,.-..�.-...f rnf,..(..t....:i.-.~._r o.:1.;...(..!C_.:J . .-:1::i.f..:..i :..~.,�\..o. .. tl�l..~.. r..�..r�~=._>.-r..l.l�+-U~,tt-..J,v1,::.:..... t�:.:a.:-.\..:..t:ra,:.:..:...-o..:.-.. T,_<vT1.tl�11�1~..1..';�:..lJ. 1�1�1 (~�l(_'i(J J...� 1.tl tw\�1...,.::.:.. �.=.. :tl!"l"l ,.....,1� .p. 11 �' '"r7.f..,. �-;:�'� c_;) f._,. ..-.�.-,r� a t�.�.;..+t.�c-:1..1 "�"��-�1� rnt�;) 1f...J_, 1f...,. (=i'�(...l. 'l)J ''�~""''=� ,=-..--,uol�lt to � , .:.\'-' ..... ..... :-;, . � t !�,:::.+nt�i,.-1.:=:..-�l �,?> i'�f ..... ....-11.-o. ........ ~ .... t\�.:.:U.�..vl:�. (..�.J.�..~.,..~ -1 1. t"~ �"�...(lil�...,J7.,;l f'~~.t...j...�. +.-t.i.-,.1�-.'}t"1"uVt� � ' The issue i::; V-l11etl"F~r or not. petitioner is entitled t1) be refunded or a tax credit certificate be issued in the amount of P616} 169.02 as alleg-?d O'lerpaid income tai-{ for the year 1990. --11���.-r-��" t'� '� R.-.-:.:::�:_.r�--��"r�-�'�"�!�l,'",l.~t�1\.... c\. ~C�l:;:''1~ t�.t-�.i-l:C:.:I.t� r.:::�� t�-.::+\~.'-:;�:' Jl>:::' r�);,:.:.Jt.",tjI�,�}�!��v1~r 1�~.1-l.:::.cl t,�.!�,�! 1�!.1 1�!\,-.;,;-�. '-' ,. petition that tlw tax collected V�las ern)ner.)US and illegai. The (:lairn for refund is still pending in';,restigation wiU1 the Bureau of t R u.:::. I .t1�.1:;':�'t�t-lc-.-\1 "�~tv1.\:=,:..1�l,. 1 1t-1,1�:;�:�'1�11.v-.l:�:�:' 1 ttl1. �� _rr�-;-:'�:�.t1� t.1� l�._�.�i1�1 1. S-. rr-�-t' -.:,=.:.t�nc~.\t'��1l.t.�,::v:. . � T-C1.,.�i�~l'�:�;�:'��fL'lt.�lr,l 1..,;:.o. -�� ;:. The burden is on tlle ..--.-���r�l�=-t�- �1;::.,.�} ,--t��l� "-q:��a� tll;::. i�.:::.r ........... �..1. 1l........ .;tw r..�...-tfJ-.f.;r ~<...o.,.-__:,:-:c.\1"t-1.�_=�,t. --� +\.-..:\;:.:\,.... . 1-'1 ..... ~ ...,tl.::>!" t1:1�:.t �:.,.--t,�la-11'.1 ��,.�:��=:.tJ.�t�1� .,_. ..,.. t".-,..�..., 0.-�1",a�.(,.�.)\,�'�,~ � ~'-i,o!l.tl"i},�.l.:..:..:.l..r,.l \a.,t1� �".l,_ !".::�..>�lt.."i-r"11"-"�t..t..~. r.._l ,,.,,,:::.!�;::. ._.,..,_ t�:.::o\.~..c:;..,.:.:..:.~ r- o' ........ 1-~ .... �\...: ' t.o the f.ureau c.f Internal Revenue. For its part. petitio:::�ner formally offered in evidence t11e follov.;-ing documents Vlhich were properlv identified bv its ' i. First Quarter Income Tax Return for calendar year 194

DECISIOB- C.T.A. CASE BO. 1917 - 4- P604,405,.4.3 (Exhs. A, A-1 ;3.ncl A-2) paid under PO No. C 0024507 (Exh. A-4) and CR No. E-200957&4 (Exh. A-.3).: 2. 1990 Corporate Annual Income Tax Return together 'Nith its attachments consisting of: a. 1990 Certificates of Creditable Income Taxes V?ithheld At Source (f-IR Form No. 174.3.1) shOViing the 5% tax v~rithlteld on c6mmercial ~ brokers fee:; by various \.\rithholding agents (Exhs. C, C-1 up to C-9. inclusive); and } Letter claim for refund dated April 2, 1992 filed with the Chief. Appellate Division of the f.IR on tl1e sa.me date. Respondent 'Na.ived her right to present any evidence. Instead, her counsel opted to subn:lit. this case for decision based on the pleadings. After careful examination of the evidence presented by petitioner we find that. the burden of proof in claims for refund or tax credit has not been overcor.ne by petitioner. The evidence offer_ed by petitioner lacks one vital document which is the 1991 Corporate Annual Income Tax Return. Petitioner in its 1990 Income Tax Return marl{.ed the box corresponding t1) the phrase "To be Applied as Tax Credit to Succeeding Taxable Year" showing its intention to credit the income tax refundable amount of P9.Y}. 4&:;>..30 in its 1991 income tax liabilit)T if any. Petitioner failed to present the 1991 � Income Tax Return to properl)r appraise this Court of Vifhether said amount v1a.s indeed credited to its income t.3.X liability for the succeeding year. In the case of BPI Data Systems Corporation (formerly Filipinas Manag~ment and Leasing Services. 195

DECISIOB- C_T_.A_ CASE HO_ 4947 . -5- Inc_}, v_ Commissioner of Internal Revenue, CTA Case No_ 4691, December 6, 1993. this Court had the oc:casion to rule: "After a tliOE'ugh revievl of the argument::: raised l)y t�ot.ll parties tllis Court arrived ":lv'itl1 t11e follo'."ling findings. In the process of going over the records of the case, the Court noted that the 1990 Income Tax Return vms not presented in evidence by tlw petitioner. Had it beE:>n presente~J in evidence. petitioner may have claimed as tax credit the amount sought for. A;::corclingly, since tl1e 1990 Income Tax Return "Nas n(Jt presented, it cannot be ascE:>rt-1ined Voltiet.her the refundable atn()unt of P 199,2)).60 Vv-as already credited being part �of Pe.77,e�S�7.60 applied fot' as tax credit to the succeeding taxable year 1991. There is no way by which this Court can determine how much it is legally entitled to. Unfortunately, petitioner fall short in its oNigation to submit t11e vital (locument ":,vhich Vlou.ld ha.,te worted to his advantage. Failure on the part of tlie petitioner to sustain his claim is fatal to its cause follo..1ling._�, the titne tested doctrine tllat claims for refund are construed strictl;l against claimant [Commissioner of Internal Revenue v _ Ledesma, G_R_ No_ L-17509, January 30.. 1970, (31 SCRA 951- To the Court's mincl, granting petitioner's prayer T.....,ill be a dangerous road to follow, thus endangering our time tested maxim t11at. justice ~Nill be ser':led to anyone vv11o earnestly seek for it." Tlle ~=:arne ruling vv-as adopted by tlle Court in the case of BPI Family Savings Bank, Inc_ v_ Commissioner of Internal Revenue, CTA Case No_ 4694, December 24, 1993, TNere it w::;.s lwld that vvhere tlw return sho'iqed a refundable itKome tax which is to be applied as t::1.;{ uedit to tl�"'t t1-�.- �"='� 1_,1C�_..(�~t.:~:'-:1�(11�11-;.=-.,. ~�-�.O....."<':v~:i1. --��' 1E�:1 \ll'<":."'�:"t r t�1� 1E-:11�ro:;,r �":.">1. _1�,�-::.0r<~:"-...,:.,, r!)t-r'7,�:r:0�l-''t-ll�fr"�'t�l. �t�.r�r1 - 1.:.<�.� . 1:1 ".:;'o3r.1."d"�v"' 196

DECISIOH- C.I.A. CASE HO. 4947 -6 - was already applied as tax credit on the succeeding taxable year. Such presumption could have been overturned by presentation of the succeeding income tax return by petitioner showing that it did not 3.u.t.om3.t.ically credit the said amount. For to grant the claim for refund despite the fact that said amount -vvas applied as tax credit v~rou.ld be detrimental to the interest of the government as the same is tantamount to granting petitioner twice t11e refund c)f the same amount. In another case. petitioner's averment that part of the creditable tax withheld in 19e,3 V?as partially applied to its income tax liability f()r 1909 without presenting to the Court its 1989 Incorne Tax� Return for proper evaluatic>n tlie claim for refund V�l3.S denied (AF Holdings and Management Corporation v_ Commissioner of Internal Revenue, CTA Case No. 452 9, March 16, 1993). Tllu.s. in the case at bar. petitioner failed to substantia.te its claim for refund or the grant .of a tax credit certificate due to ' failure or omission on its part to present and offer its 1991 Income T::rx Return. Its present3.tion i~; ne<:essary to prove to the Court tllat the refundable amount daimed Vv'3.S not applied as a tax credit to tlw succeeding taxable year. Petit.ic)ner has the burden of pr()of to s1wvv- that it is entitled to the refund of tl1e amount claimed as refundable because taxes a.re presumed to have been (:ollected in accordance 'With lavlS and regulatJons (Caltex (PhiL) Inc. v _Commissioner of Internal Revenue, CTA Case No. 2871, January 29, 1986l 197

DECISIOH- C_T_A_ CASE BO_ 4947 -7- WHEREFORE, tlle instant petition is hereby DISMISSED for lack of merit. Petitioner's claim for refund or issuanc:e of a tax credit c:ertific:ate is DENIED_ Without pronouncement as to costs. SO ORDERED_ ~Q.~ ERNESTO D_ ACOSTA Presi�jing Judge WE CONCUR: L 1L GRUBA ~~ RAMON 0_ DE CERTIFICATION I hereby certify that. this decision was reached after due consultation among the members of tile Court of Tax Appeals in accc:�rdance with Section 1.3, Artic:le VI 11 of the Constitution. ~c.O~. ERNHSTO D_ ACOSTA Presiding Judge Court of Tax Appeals 198