COMMISSIONER OF INTERNAL REVENUE v. Team (PHILIPPINES) ENERGY CORPORATION

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC COMMISSIONER OF INTERNAL CTA EB No. 694 REVENUE, (CTA Case No. 7603) P et it io n e r, Present: -versus- Acosta, PJ. Castaiieda,Jr., Bautista, Uy, Casanova, Palanca-Enriquez, Fa bon- Victorino, Mindaro-Grulla, and Cotangco-Manalastas, JJ. TEAM (PHILIPPINES) ENERGY Promulgated: CORPORATION, -"S'-'E="P---1=-2--=-2-0=1-=2-=--#~(1-!"J-iIL�'/-L.., ~/"fi\'P,,/r1-;A.-..._.,,~ R esponde nt . X- ------------- - - --- - --- ---- - -------------- -- -- - ---------- X AMENDED DECISION COTANGCO-MANALASTAS, J.: Fo r reso luti on is the M oti on fo r Reco nsiderati on 1 fi led by respo ndent on May I 0, 20 12, w ith petiti one r's Comment2 fil ed on Jul y 2, 20 12. T he Assa il ed Decision dated April 13. 201 2, d is posed o fth e case, as foll ows: " WH EREFORE, premi ses co nsidered, th e in stant Petiti on fo r Review is hereby GRANT ED. The Dec ision of the Fo rm er Second Di vision dated April 28, 20 I0 and the Reso lu tion dated September 17, 20 I0 are hereby REVERSE D and SET AS ID E. The cla im for refund /tax credit of res pond ent 's unutili zed creditab le inco me taxes V withhe ld for th e yea rs 2004 and 2005 are hereby DEN IED for in suffi ciency of ev idence. "-' 1 Rollo, C.T.A. EB Case No. 694, pp. I02- 11 5. 2 Rollo, pp. 133- 139. ' Rollo, p. 89.

AMENDED DEC ISION Page2of4 CTA EB No. 694 (C.T.A. Case No. 7603) Commissioner of Internal Revenue vs . TeaM (Philippines) Energy Corp . As grounds for its motion, respondent raises the following issues: I. Jurisprudence is to the effect that the Court may still consider the respondent's quarterly income tax returns for 2005 and 2006 even if the same are presented only after trial . II. In a refund of excess creditable withholding taxes, th e Supreme Court has consistently ruled that the submission of quarterl y returns for the subsequent years is unnecessary . III. Respondent sufficiently proved its entitlement to refund or issuance of a tax credit certificate in the amount of P25 ,5 71 ,495 .99, representing excess and unutilized creditable taxes withheld for taxable years 2004 and 2005.4 Respondent submitted the original computer printouts of its quarterly income tax returns for the year 2005 and 2006 as Annexes "A" to " F" of its motion for reconsideration. In its comment, petitioner argues that she was not given suffici ent time and information to evaluate respondent 's administrative claim for refund, nor was she given sufficient facts to evaluate the administrative claim. Furthermore, petitioner argues that respondent failed to present the quarterl y income tax returns. In the instant case, all that was left for respondent to prove its entitlement to income tax refund/credit was to show that it had not carried over any of the unutili zed creditable withholding taxes in the subsequent quarters. Thus, for failure to submit its quarterly income tax returns for calendar years 2005 and 2006, thi s Court could not fully ascertain whether actual carry-over was made by the respo ndent. As such, respondent's claim for tax refund/credit was denied . Respondent. in its Motion for Reconsideration , now submits th e computer printouts of its quarterly income tax returns for the years 2005 and 2006, which were V initially filed through the BIR's EFPS. 4 Rollo, pp. 103- 104.

AMENDED DEC ISION Page 3 of 4 CTA EB No. 694 (C.T.A . Case No. 7603) Commissioner of Interna l Revenue vs. TeaM (Phi lippines) Energy Corp. In the case of Commissioner of Internal Revenue vs. Perf Realty Corporation5, the Supreme Court considered and gave effect to the income tax return merely attached to a motion for reconsideration, ruling that the same formed part of the records of the case and could not simpl y be ignored. Applying the foregoing to the instant case, respondent 's quarterly income tax returns6, upon exami natio n, clearly reveal that no actual carry-over of the unutilized creditable withholding taxes was made. Considering that the Former Second Division has already made a finding that respondent has complied with the requisites for a claim for tax refund/credit and ordered that the same be granted, and considering further that it has been shown that no actual carry-over of the creditable withho lding tax was made, there is, therefore, no legal obstacle for the grant of said tax refund. WHEREFORE, premises considered, the instant Motion for Reconsideration 1s hereby GRANTED. The assailed Decision , dated April 13 , 20 12, is hereby REVERSED and SET AS IDE. The Decision of the Fonner Second Division, dated April28, 2010, and the Reso luti on, dated September 17,20 10, ordering the refund or issuance of a tax cred it certificate in the amount of P25 ,57 1,495.49, are hereby AFF IRM ED. SO ORDERED. ~~~_./~ AMELIA R. COTANGCO-MANALASTAS Associate Justice 5 G.R. No. 163345, Jul y 4, 2008. 6 Rollo, pp. 11 7- 128 .

AMENDED DECISION Page 4 of 4 CT A EB No . 694 (C.T .A. Case No . 7603) Commi ss ioner of Intern al Reve nue vs . Tea M ( Philippin es) Energy Co rp . WE CONCUR: L-~, o~ ERNESTO D. ACOSTA Presiding Justice ~~c . ~~~ G . . Justi ce .R:fANITO c. CASTANEDAyJR. Associ ate Justice � AEssR~L!~~t.iUcYe tv-,~~~ OLGA PALANCA-ENRIQUEZ Associ ate Justice ~N.M~�~ .. C~ CIELITO N. MINDARO-GRULLA Associate Justi ce