CTA Case No. 3916 (Decision)

-=-----~~ ~-~~ -~ ----wr--- P' � REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY - .:. PROVIDENT INSURANCE CORPORATION ~ Petitioner-, -��� ver-su s -� C.T.A. CASE NO. 3916 COMMISSIONER OF INTERNAL REVENUE , Respondent. x -- -�--- -- - ---- ~{ DEC I I 0 N This i s a claim for- ~ex cr-edit in the amount of P678~426.00 for- t h e taxable year-s 1983 and 1984 r-epr-esentinq / ':�:cess , ta:�: payments a nd cr-edita ble taxes withheld over- the amoun t due. Petitioner- i s a corpor-ation existing under- the J.i::\WS of t 1��? Philippines and that r-espondent Commi ss ioner of Internal Revenue is t he head of the Bur-eau of Internal Revenue. Petitioner is engaged in the bus iness of s e ll ing insur-ance and in investment of its funds in gover-nment bonds and other- sec ur-ities.

------~--~ -...- .. --~-~ DEC I f:3 I UN ..... CTA CASE NtJ. 3916 In 1983~ petitioner filed its final annual income t.a:-: retL.1r�n s howinq a t a :-: due of P69 ~ 744.00 and that i t �f il Ecc:l i t:.s quarter� J. y income taH r-eturn as r-equin: d by the l'.lat..ional Inter�� nal Revenue Code and paid the following amounts: . . . . . . . . . 1 s t f:ltr. P27B~004.74 . . . . . . . . . 2 nd C:lt.r. ~334 ~ 547. 16 ~Jrd Qtr. . . .. . . . . . 17,4 :~:B.65 Thf.�?r:~ e amounts include ?q46vS5 taxes ;- cr-editable wit:hhf.�?ld on inter-est �for gover-nment bonds of P49,~? 75.00~ total r-efundable sum of P609, 5 :::'0. 00. In 1984~ considering that i t lo s t during that ther� e v1e1'�� p alleq�~ d cr-editable ta:-:es withheld on interest from government bonds of or an a lleged total r�efund a b l e amount of F'68~906 . .1.0. Summing up tht.�~ i::\lleqed creditable amounts of P609~520.00 and P68~906.10~ i t arrived at the total refundable sum of P678,426.00. On apr�il 2, .1985, petitioner- , thru counsel, A t t y . Demosthenes B. Gadioma, c: 1 aimed �for t h e ta}: 57

DEC IS I Dl\1 CTA CASE ND . 3 916 3 cr-e d i t of the a l l e g e d amount of F'6 7 8~4 2 6.00 (E:-:h. J~ pp. 7 1 - 7 3 , CTA r ec .) a s follow s : Ta:-: clue pe r- I"ll~ � � � � � � � � � � � � � � � � � � P 6 <7, 7 44. 00 T.:\:-: payments : l s t. qua r-t e r- ITR F?78,00 4 :;:nd II II 3::r4' 54 7 ~~ r��d II II .1 7 ' 4~.!8 Cn"'(:H t a ble t.a:-:es wi th-��� tE lc:l on i nte l'"�e s t . fr-c:li'TI t goven1mE~n bends --�������6�����7����9�����'--2-���6�����4����.��(���X�����)� Ta~�! dt.te -- l oss y ear- ... . . " �..� �. �� Cn ;�dita bl e t a:-a:-.>s withhe ld on i nt.e n .:=st. fn.Jin qclVf?r�nrnf.:~nt b:::lr�lds . � P 5:3 , 8 f:l2. ~5:3 and fr-un r-ental s earnt."'d � � � � � � � � J.~',!.~~~:;:;; .~-~i� - _. Ano...u��lt r�e �fund a ble .. � � � � � � � � � � � � � � P 68, 906 . .1. 0 Tot.:~ l a mc:unt. n.~ 1' und a bl e �few .t9fJ3 8.( 1.984 ���� ��� � ������� F' 6 7 8 4 2 6 . 0 0 ~::o:::::o:::::::::::,:::::::::::::::::::::::::�:::: R es pond r:~ n t Cornmi ss .ion e r of In t e rn a 1 R eve nu e , howeve r, did not act on sa id cl a im for tax c redit. The only i s su e in thi s case i s whe ther or nbt. peti tiom?r Pr-ovident In s urance Cor- poration i s entitl e d ,to the cr e dit of the alleg e d amount of F'678,42 6.00.

DEC I f3 I UN CTA CA SE NCJ. 3 916 - 4 -� F' e t.i.t.icm e r- i s E:;> ntit.J. e d to th e claim fo r ta >: credit. s o muc h a s it has proved to hav e been er-roneous ly p a id by virtue of its e v id e nce. The pet i tioner h as s hown b y its evi dence that i t i s entitled to c laim f o r ta >: c redit. �for the yea rs 1983 a nd 1984 only the amount of tax withheld at s m ..w ce in th E:> s um of F'640,930. ~!. 0~ comput e d as foll o ws : Ta:-: due r::er- I TF: � � . � � � . � � � . . � � � . � � � � � � � P 69 ~ 744.00 1s t Di:r-- . (b:hs. C3 II.( B) ��� F~.:~7B~00:3 . 74 . ...97..9 , :',1:~:!. Q9 :.:.:'nd Dt.r- . (E>: hs. H~ H- .1 /1.( B-���1) � � � � � � � � � � 3".::4 ~ 54'7 . .16 3 r�d Cl t.r-. ( E:-:hs . I -���.1 II.( A) � � � .t7 ~ 4:~.8. 65 Cn?<:Ht:a bl e t.a:-:es vlit.hhE;> ld on inte r-es t �fr-�cxn gover�n -- mE�nt tx~�d s ( b: hs . c ~ C-�� .1 to C--4) � � � � � � � � � � � � � .......4? , ~~?.!? ._o:)o::l Tota l r e funda bl e arrn..tnt. fot~ .1.9E1.3 Ta:-: L)..tf.?-��� 1 CJ<::",s y e ,::\r-� ��� � ���������� �� �� � �� Zero Cn :x:h. tabl e tm:es vJ.i. thi-Je ld c:n inte t'"�est �fr-c.(n CJDVer-nnlent tx::nd ~; : (E:-:h. . ' �� � � � �� � ����� P 6, 7~).00 (E:-: h. E -1 ) � � � � � � � � � � � � � 17 ~ 2 12 . ::�.o (E:-: h. F) � � . . . . . . . � � . � l.,OZ~. 2 5 (E:-:h. F-���1) ��� ����� ����� 1~057.:50 (E:-:h. F--2 ) � � � � � � � � � � � � � Z -75.0::14 (E:-:h. F--:.:q � � � � � � � � � � � � � .t ,046.00 ( E:{ h. F -�-4) � � � � � � � � � � � � � 965.1.6 (E:-:h. F ��-5) � � � � � � � � � � � � � ... .. :~ ,~:'b.,t.o::1~ f.: . ::;:1,4.~Q~ :~;'Q Total l'"l?"fLtndable amcJI..tnt for� 1984 . . � . . � � ~: :::,:~1,,,;'f},,S\~,,i.5~

DECIBION �� eTA cr.,m:: t < � 3916 - 5- Tota 1 n :��fundab 1e f or 198.3 ��.�����.����� F'609' 5::~0. 00 Tot.c::\l n :�fundable �for.. J 984 �.������.� � ��� ::::.1 41o. :~o Gr�and total refundable for� """"" '"""' ' " "" " " ". " " """' 1.9B::; and 1.984 � � � � � . . � . . � . � � � . � ����. Note that the amounts of P6~ 7 50.00 (Exh. E- 3) and P1.7~21 2 .50 (Exh. E- 2 ) were remo v ed in the computation of the c:\ moun t. they apparently constitute a reproduction only of Exhs . E and E -- .1. l�JHEF<EFORE , Commi ss .i.oner� Inter-r1 a l.R r.:> v e nu e .i. s hereby o r d f:? r e d t u qrant. a ta :�: to p�:- t.i. t:..i.nn E~ l'" Pr�ovident Cor� por� r.~t .i. on th e qr. a nd t o t a l sum o �f F'640~9 3 0. 3 0 as excess tax payments for the years 1983 and 1984. Without pronouncement. .a s to co s ts. SO ORDERED. Que z on City, Metro Manila, Auqus t 1988 � ...__ . ROAQUIN ,Judge

DECISION CTA CASE NO. 3916 �- 6 -�- hiE CONCUR: AMANTE Presiding ,Judge -~ Associate Judge CERT I F I C AT I 0 N I certi-fy that this decision was reached a-fter due consultation amo~g the me mbers o-f the Cour�� t Appeals in accordance with Section 1 3 ~ Article VI II o-f the 0~n s titution. ~~/ AMANTE ILLER F'resid i g ,Jtldge Court o-f Tax Appeals