Scribd
Upload
179 views

Cir vs. Meralco G.R. No. 181459, June 9, 2014

This case involves a claim by MERALCO for a tax refund of ₱264,120,181.44 representing final withholding taxes paid on interest to NORD/LB from 1999 to 2003. [1] The BIR initially ruled the interest payments were tax exempt but later denied the refund claim, saying it was past the 2-year statute of limitations. [2] The Supreme Court upheld the denial, finding MERALCO had enough time to verify the tax status but only filed for refund in 2004, beyond the 2-year limit. [3]

Uploaded by

Rusty Nomad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
179 views

Cir vs. Meralco G.R. No. 181459, June 9, 2014

This case involves a claim by MERALCO for a tax refund of ₱264,120,181.44 representing final withholding taxes paid on interest to NORD/LB from 1999 to 2003. [1] The BIR initially ruled the interest payments were tax exempt but later denied the refund claim, saying it was past the 2-year statute of limitations. [2] The Supreme Court upheld the denial, finding MERALCO had enough time to verify the tax status but only filed for refund in 2004, beyond the 2-year limit. [3]

Uploaded by

Rusty Nomad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

CIR vs.

MERALCO

G.R. No. 181459, June 9, 2014

Facts:

On October 7, 2003, the BIR issued Ruling No. DA-342-2003 declaring that the interest payments
made by Meralco to NORD/LB Singapore Branch are exempt from the ten percent (10%) final
withholding tax, since it is a financing institution owned and controlled by the foreign government of
Germany.

Consequently, on July 13, 2004, relying on the aforesaid BIR Ruling, respondent MERALCO filed
with petitioner a claim for tax refund or issuance of tax credit certificate in the aggregate amount of
₱264,120,181.44, representing the erroneously paid or overpaid final withholding tax on interest
payments made to NORD/LB Singapore Branch. 1

On November 5, 2004, respondent MERALCO received a letter from petitioner denying its claim for
tax refund on the basis that the same had already prescribed under Section 204 of the Tax Code,
which gives a taxpayer/claimant a period of two (2) years from the date of payment of tax to file a
claim for refund before the BIR.

Issue: Whether or not respondent MERALCO is entitled to a tax refund/credit relative to its payment
of final withholding taxes on interest payments made to NORD/LB from January 1999 to September
2003.

HELD: NO

Tax refunds are based on the general premise that taxes have either been erroneously or
excessively paid. Though the Tax Code recognizes the right of taxpayers to request the return of
such excess/erroneous payments from the government, they must do so within a prescribed
period. In the case at bar, respondent MERALCO had ample opportunity to verify on the tax-exempt
status of NORD/LB for purposes of claiming tax refund. Nevertheless, it only filed its claim for tax
refund on July 13, 2004, beyond the 2 year prescriptive period.

Therefore, respondent MERALCO's claim for refund in the amount of (₱224,760,926.65)


representing erroneously paid and remitted final income taxes for the period January 1999 to July
2002 should be denied on the ground of prescription.

You might also like