CTA Case No. 3206 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY UNITED ARTISTS PHILIPPINES, INC., Petitioner, - ver�sus - C.T.A. CASE NO. 3206 THE COMMISSIONER OF INTERNAL REVENUE, Respondent. >I - - - .,... -----X D E C:: I s I 0N This is a claim for refund of the amounts of P149~843.00 and P526~881.13 representing overpaid income tax for fiscal year ended November 30, 1978 and 1979. Petitioner is a resident foreign corporation licensed to engage in business in the Philippines. On March 5~ 1979 (E>:h. E-1) petitioner filed its corporate annual income tax return (Exh. E) for fi scal year ended November 30, 1978. Its corporate annual income tax return for fiscal year 1978 showed the following: Net Incone P2:30,6a3.00 T.:u�: due therecn p 82,275.00 Less: Credits (a) 5/. Ta>: Withheld on film rentals p 1,143.00 [1] (b) QJarterly .Ta>: Payments First qtr. 225 '365. ()() Sec::ond qtr. --�--~�~!.9..._. 9Q Total Credits Avai.lable -~.~-118.00 Pm::x..nt refLndable P149.!!~3.~ [2) 229 /

DECISION - CTA CASE NO. 3206 - 2- The first quarter income tax as sh6wn in petitioner's dec 1aration of net ta>cable income are for the quarter ended February 28, 1978 (Exh. B), in the amount of P225,365.00 (Exh. B-1) was paid on On the other hand, the second quarter income as shown in its declaration of net ta>cable income for the quarter ended May 31, 1978 (Exh. C) in the amount of For the fiscal year ended November 30, 1979, petitioner ' s corporate annual income tax return (E>:h. I) showed a net loss of P20,939.00 (Exhs. I - 1, I-2) and showed refundable amount of P676,723.00 (Exh. I-3) as follows: Net Loss (P2(), 939. (1(1) Ta>: due therecn NIL Less: CrE.'di ts P676,723.00 (a) Amc:unt refundable P149,843.00 P676, 723.(1(1 [4] (b) 5'l. ta>: withheld on film rentals Total crE.'dits available Total amo...tnt refundable Of the amount of P149,843.00, which consists of 5'l. tax withheld on film rental of Pl,l43.00 paid (Exh. E-4), the 1st quarter payment of P225,365.00 was paid on B.Q.ril 24, 197f:!, and the 2nd quarter payment of P5,610.00 was paid 230

DECISION - CTA CASE NO. 3206 - 3- Out of the amount of 5% tax withheld on film rental of P526,881.00, as at the end of the quarter 1979, the c 1aim for refund counted from the date February 25, 1979 of this amount has not prescribed, and the petition for review having been filed on February 25, 1981, it was filed within 2 years from the time of the payment of the tax. We note, however, that the amount of P1,143.00 was wi thheld on t!9_'{~_f!l!:ler_ _;5 (1_,____!~-7~ (Exh. E- 4), the amount of P 2 25, 365.00 ( E>:h. B- 1) was paid on 6.P-.! ij_ ~:1..s._______!_~.Z~. ( E >: h � B - 2 ) , and the 2nd payment of P5,610.00 for the quarter ended May 31, 1978 (Exh. which were paid by petitioner three years long be fore the prescriptive date of February 25, 1981. Thus, it is believed that these amounts of P1,143 .00, P225,365.00 and P5,610.00 has presc ribed. In view of the foregoing, with the e>cception of the sum of P149,843.00, which has prescribed and therefore not refundable, the sum of P526, 881.00 shown in th~ final income tax return of petitioner for fiscal year ended November 30, 1979 is refundable. 231

t 1�.� DECISION - CTA CASE NO. 3206 - 4- WHEREFORE, the claim for refund of on 1y the sum of P526,881.00 is hereby granted. Without pronouncement as to costs. SO ORDERED Quezon City, Metro Manila, June 3, 1989. WE CONCUR: Judge CER.T:J::FICA.T:J:ON I hereby certify that this decision was reached after due consultation among the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. Presid ng Judge Court of Tax Appeals 232