CTA Case No. 8509

THIRD DIVISION
[C.T.A. CASE NO. 8509. November 12, 2014.]
PERCEPTION GAMING, INC., petitioner, vs. BUREAU OF

INTERNAL REVENUE, respondent.
DECISION
BAUTISTA, J : p
The Case
This is a claim for refund of Value-Added Tax payments paid by petitioner for
the periods April to December of taxable year 2010 and January to December of
taxable year 2011, amounting to a total of Nine Million Forty-Nine Thousand Two
Hundred Sixty-Six Pesos and 85/100 (Php9,049,266.85) 1(1)
The Parties 2(2)
Petitioner Perception Gaming, Inc. ("PGI") is a corporation existing by virtue

of Philippine laws, with principal place of business of the 24th Floor, 6750 Ayala
Avenue, Makati City.
Respondent is the Bureau of Internal Revenue, Revenue District Office 47,

with principal place of business at 4th Floor, Sen. Gil Puyat Ave., Makati City.
The Facts
As stated in the Memorandum submitted by petitioner through registered mail

on December 17, 2013, 3(3) incorporating the Joint Stipulation dated October 29,
Copyright 2017 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia Second Release 2017 1
2012, 4(4) the factual antecedents of this case are as follows: TcEaDS
"4.1. Petitioner was incorporated on December 8, 2006, the primary

purpose of which is to, among others, lease goods and commodities, including
but not limited to casino gaming products, machines, equipment, software and
technology.
4.2. Specifically, Petitioner is engaged in the business of supplying and

leasing out gaming machines to entities authorized by the Philippine Amusement
and Gaming Corporation (PAGCOR) to operate gaming centers
("PAGCOR-Authorized Bingo Operators").
4.3. Petitioner is registered with the Bureau of Internal Revenue (BIR)

as a VAT taxpayer in accordance with Section 236 of National Internal Revenue
Code of 1997 (the "Tax Code"), with Taxpayer Identification No.
006-582-145-000.
4.4. On the following dates, Petitioner filed with the BIR its Quarterly
VAT Returns for the 2nd to 4th quarters of CY 2010 and 1st to 4th quarters of
CY 2011:
eFPS Filing
Document Date of Filing Reference No.
Original Quarterly July 20, 2010 101000003947728

VAT Return for the 2nd
Quarter of CY 2010
Original Quarterly October 26, 2010 101100004425954

VAT Return for the 3rd
Quarter of CY 2010
Original Quarterly January 25, 2011 101100004707984

VAT Return for the 4th
Quarter of CY 2010
Original Quarterly July 25, 2011 101100004966565

VAT Return for the 1st
Quarter of CY 2011
Original Quarterly October 19, 2011 101100005215874

VAT Return for the 2nd
Quarter of CY 2011
Original Quarterly January 20, 2012 101200005526961
VAT Return for the 3rd
Quarter of CY 2011
Original Quarterly March 2, 2012 101200005685502

VAT Return for the 4th
Quarter of CY 2011
4.5 Based on the VAT Returns for the period covering the 2nd to 4th
quarter of CY 2010 and 1st to 4th quarter of CY 2011, Petitioner's sales, output
VAT, purchases and input VAT are summarized below: SacDIE
Period Effectively Zero- Output VAT Purchases (P) Input VAT

Rated Sales (P) (P) (P)
2nd Quarter CY 5,409,553.92 649,146.47 1,310,617.42 157,274.09

2010
3rd Quarter CY 7,167,210.18 860,065.22 1,954,571.61 234,548.59
2010
4th Quarter CY 7,820,736.42 938,488.37 1,338,920.77 160,670.49
2010
1st Quarter CY 8,058,429.24 967,011.51 1,346,753.04 161,610.36
2011
2nd Quarter CY 8,868,456.85 1,042,374.82 1,199,714.25 143,965.71
2011
3rd Quarter CY 8,191,657.48 982,998.90 1,059,008.17 127,080.98
2011
4th Quarter CY 9,762,050.39 1,171,446.05 12,277,799.83 1,473,335.98
2011
––––––––––– ––––––––––– –––––––––––– –––––––––––
TOTAL 55,096,094.48 6,611,531.34 20,487,386.09 2,458,486.20
=========== ========== ========== ==========
4.6. For the 2nd to 4th quarter of CY 2010 and 1st to 4th quarters of
CY 2011, Petitioner subjected its gross receipts from the sales of services to
both PAGCOR and PAGCOR-Authorized Bingo Operators to 12% output VAT
in the aggregate amount of P6,590,780.65. Petitioner shouldered and paid such
output tax. Petitioner also incurred input VAT in the total amount of
P2,458,486.20.
4.7. On June 27, 2012, Petitioner filed with the BIR-Revenue Region
(RR) No. 8 an Application for Tax Credit/Refund (BIR Form No. 1914) of its
output VAT and input VAT for the 2nd to 4th quarter of CY 2010 and 1st to
4th quarters of CY 2011 in the amount of P9,049,266.85, together with the
relevant documents.
4.8. To date, Respondent has yet to act on Petitioner's administrative

claim for refund of erroneously paid output VAT and unutilized input VAT for
the 2nd to 4th quarter of CY 2010 and 1st to 4th quarters of CY 2011. Due to
Respondent's inaction on Petitioner's administrative claim for refund, Petitioner
was constrained to file a Petition for Review with this Honorable Court on June
28, 2012."
On September 10, 2012, respondent filed her Answer, 5(5) interposing the
following Special and Affirmative Defenses: DTAHEC
"SPECIAL AND AFFIRMATIVE DEFENSES
4. Respondent reiterates and repleads the preceding paragraphs of the

answer as part of her Special and Affirmative Defenses.
5. Petitioner's claim for refund is still subject to investigation by the Bureau

of Internal Revenue.
6. Petitioner failed to demonstrate that the tax, which is the Subject of this
case, was erroneously or illegally collected.
7. Taxes paid and collected are presumed to be made in accordance with the
laws and regulations, hence, not refundable.
8. It is incumbent upon the Petitioner to show that it has complied with the
provision of Section 204(C) in relation to Section 229 of the 1997 Tax Code,
as amended.
9. In an action for tax credit or refund, the burden is upon the taxpayer to
prove that he is entitled thereto, and failure to discharge the said burden is fatal
to the claim (Emmanuel & Zenaida Aguilar v. Commissioner, CA-GR No. Sp.
16432, March 30, 1990 cited in Abad, Law of Basic Taxation in the
Philippines, let Edition, p. 206).
10. Claims for refund are construed strictly against the claimant, the same
partake the nature of exemption from taxation (Commissioner of Internal
Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with
disfavor (Western Minolco Corp. vs. Commissioner of Internal Revenue, 124
SCRA 121).
11. It is an established principle that refunds and tax credits are in the nature
of tax exemptions, hence, strictly construed against the taxpayer. The taxpayer
claiming for tax refund or credit has the burden of proving that he is entitled
for such refund or credit by providing evidence of compliance of certain
conditions of the law under which the privilege of exemption is granted. In a
refund process, the taxpayer is bound to comply not only with substantiation
requirements but also with the procedural due process to prove its entitlement
to the refund. The more critical of these rules are the 2-year prescriptive period
and the proper observance of the 120+30 day rule within which to file the
refund claim. CSDTac
12. In the case of Commissioner of Internal Revenue vs. Aichi Forging

Company of Asia, Inc., G.R. No. 184823 dated October 6, 2010, the
Supreme Court held:
'However, notwithstanding the timely filing of the

administrative claim, we are constrained to deny respondent's
claim for tax refund/credit for having been filed in violation of
Section 112(D) of the NIRC, which provides that:
'SEC. 112. Refunds or Tax Credits of Input Tax. —
xxx xxx xxx
'(D) Period within which Refund or Tax Credit of Input

Taxes shall be made. In proper cases, the Commissioner shall
grant a refund or issue the tax credit certificate for creditable
input taxes within one hundred twenty (120) days from the
date of submission of complete documents in support of the
application filed in accordance with Subsections (A) and
(B) hereof.
'In case of full or partial denial of the claim for tax

refund or tax credit, or the failure on the part of the
Commissioner to act on the application within the period
prescribed above, the taxpayer affected may, within thirty
(30) days from the receipt of the decision denying the claim
or after the expiration of the one hundred twenty
day-period, appeal the decision or the enacted claim with
the Court of Tax Appeals. (Emphasis supplied.)
'Section 112(D) of the NIRC clearly provides that the

CIR has '120 days, from the date of the submission of the
complete documents in support of the application [for tax
refund/credit],' within which to grant or deny the claim. In case
of full or partial denial by the CIR, the taxpayer's recourse is to
file an appeal before the CTA within 30 days from receipt of the
decision of the CIR. However, if after the 120-day period the
CIR fails to act on the application or tax refund/credit, the
remedy of the taxpayer is to appeal the inaction of the CIR to
CTA within 30 days. AIDTHC
'In this case, the administrative and the judicial claims

were simultaneously filed on September 30, 2004. Obviously,
respondent did not wait for the decision of the CIR or the lapse
of the 120-day period. For this reason, so find the filing of the
judicial claim with the CTA premature.
'Respondent's assertion that the non-observance of the

120-day period is not fatal to the filing of a judicial claim as
long as both the administrative and the judicial claims are filed
within the two year prescriptive period has no legal basis.
'There is nothing in Section 112 of the NIRC to support

respondent's view. Subsection (A) of the said provision states
that 'any VAT-registered person, whose sales are zero-rated or
effectively zero-rated may, within two years after the close of
the taxable quarter when the sales were made, apply for the
issuance of a tax credit certificate or refund of creditable
input tax due or paid attributable to such sales.' The phrase
'within two (2) years . . . apply for the issuance of a tax credit
certificate or refund' refers to applications for refund/credit filed
with the CIR and not to appeals made to the CTA. This is
apparent in the first paragraph of subsection (D) of the same
provision, which states that the CIR has '120 days from the
submission of complete documents in support of the application
filed in accordance with Subsections (A) and (B)' within which
to decide on the claim. ASTcaE
'In fact, applying the two-year period to judicial claims

would render nugatory Section 112(D) of the NIRC, which
already provides for a specific period within which a taxpayer
should appeal the decision or inaction of the CIR. The second
paragraph of Section 112(D) of the NIRC envisions two
scenarios: (1) when a decision is issued by the CIR before the
lapse of the 120-day period; and (2) when no decision is made
after the 120-day period. In both instances, the taxpayer has 30
days within which to file an appeal with the CTA. As we see it
then, the 120-day period is Crucial in filing an appeal with the
CTA.
xxx xxx xxx
'In fine, the premature filing of respondent's claim for

respondent's claim for refund/credit of input VAT before the
CTA warrants a dismissal inasmuch as no jurisdiction was
acquired by the CTA."
13. The Aichi case is squarely applicable in the instant petition. In this case,
the administrative claim for refund was filed on June 27, 2012 and the judicial
claim was filed before the Court of Tax Appeals on June 28, 2012. By doing
so, the petitioner did not wait for the decision of the respondent or the lapse of
the 120-day period. For this reason, the filing of the judicial claim with the
Honorable Court is premature. The non-observance of the 120-day period is
fatal to the filing of a judicial claim. The premature filing of petitioner's claim
for refund/credit of Input VAT before the Honorable Court warrants a
dismissal inasmuch as no jurisdiction was acquired by the Honorable Court.
cADaIH
14. Further, It should be noted that VAT is an indirect tax payable by the
seller and not by the purchaser of goods. However, being an indirect tax, it can
be shifted or passed on to the buyer/purchaser, transferee or lessees of the
goods, properties or services. Once shifted to the buyer/customer as an
addition to the cost of goods or services sold, it is no longer a tax but an
additional cost which the buyer/customer has to pay in order to obtain the
goods or services.
15. In the present case, petitioner's leased of gaming equipment to 'PAGCOR

Operators' are subject to 12% VAT which can be passed on to 'PAGCOR
Operators' as additional cost of the gaming equipment being leased by the
latter because VAT, being an indirect tax may be shifted or passed on to the
buyer of goods, services or lease of properties (PAGCOR Operators), pursuant
to Section 105 of the Tax Code.
16. In the case of PAGCOR vs. BIR, GR No. 172087, it was held that:
'Although the law does not specifically mention PAGCOR's

exemption from indirect taxes, PAGCOR is undoubtedly
exempt from such taxes because the law exempts from taxes
persons or entities contracting with PAGCOR in casino
operations.'
17. The pronouncement of the Highest Magistrate in holding that PAGCOR

is exempt from indirect taxes by granting tax exempt status to persons dealing
with PAGCOR in casino operations, which are the PAGCOR Operators in the
present case. The unmistakable conclusion is that PAGCOR is not liable for
VAT and neither the PAGCOR Operators as the latter are effectively subject
to zero percent (0%) rate under Section 108 (B) (3) of the 1997 Tax Code, as
amended. While the 'PAGCOR Operators' are exempt from taxes, its
exemption only covers taxes for which it is directly liable. The exemption does
not cover the VAT passed on by petitioner. The shifting of the VAT to the
PAGCOR Operators which are tax-exempt entities does not make them the
person directly liable and therefore, the PAGCOR Operators cannot invoke
their tax exemption privilege to avoid the passing on or shifting of the VAT.
TDAcCa
Moreover, the Supreme Court undoubtedly extends the tax exemption

only to those persons or entities directly contracting with PAGCOR in casino
operations such as PAGCOR Operators and not to those who are directly
contracting with PAGCOR Operators. In this case, Petitioner is an entity not
dealing or contracting directly with PAGCOR but with the PAGCOR Operators.
Hence, PAGCOR's exemption does not extend to Petitioner. Thus, petitioners
leased of gaming equipment to PAGCOR Operators are subject to 12% VAT
under Section 108 of the Tax Code. Accordingly petitioner cannot claim
refund/credit of its VAT payment."
On October 29, 2012, the parties filed their Joint Stipulation of Facts and
Issues ("JSPI"), 6(6) and a Pre-Trial Order was issued by the Court on November 16,
2012. 7(7)
On July 5, 2013, petitioner filed its Formal Offer of Evidence, 8(8) which was
resolved by the Court on August 27, 2013. 9(9)
On September 11, 2013, petitioner filed a Motion for Reconsideration over the
Resolution promulgated on August 27, 2013, 10(10) which was resolved on October
8, 2013. 11(11)
On December 20, 2013, petitioner filed its Memorandum through registered

mail, 12(12) while respondent filed her Manifestation (in lieu of Submission of
Memorandum) through registered mail on December 17, 2013. 13(13) Thus on
January 3, 2014, the Court promulgated a Resolution 14(14) submitting the case for
Decision.
Hence, this Decision. SaCDTA
The Issue
Based on the Joint Stipulation of Facts and Issues 15(15) filed by the parties,
the sole issue to be resolved is:
"IS PETITIONER ENTITLED TO A VAT REFUND OF

P[HP]9,049,266.85 FOR THE PERIOD APRIL TO DECEMBER 2010 AND
JANUARY TO DECEMBER 2011"
The Ruling of the Court
The Court finds no merit in the Petition for Review filed by petitioner
Perception Gaming, Inc.
The 1997 National Internal Revenue Code, as amended, ("1997 NIRC")

provisions pertinent to a claim for issuance of tax credit certificate or refund of
unutilized input VAT attributable to zero-rated or effectively zero-rated sales is
Sections 112 (A), which provide:
"SEC. 112. Refunds or Tax Credits of Input Tax. —
(A) Zero-Rated or Effectively Zero-Rated Sales. — Any

VAT-registered person, whose sales are zero-rated or effectively zero-rated may,
within two (2) years after the close of the taxable quarter when the sales were
made, apply for the issuance of a tax credit certificate or refund of creditable
input tax due or paid attributable to such sales, except transitional input tax, to
the extent that such input tax has not been applied against output tax: Provided,
however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2)
and (B) and Section 108 (B)(1) and (2), the acceptable foreign currency
exchange proceeds thereof had been duly accounted for in accordance with the
rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided,
further, That where the taxpayer is engaged in zero-rated or effectively
zero-rated sale and also in taxable or exempt sale of goods of properties or
services, and the amount of creditable input tax due or paid cannot be directly
and entirely attributed to any one of the transactions, it shall be allocated
proportionately on the basis of the volume of sales." cISAHT
Based on the said provision, in order to be entitled to a refund or tax credit of
unutilized input VAT attributable to zero-rated or effectively zero-rated sales, the
following requisites must be complied with:
1. that there must be zero-rated or effectively zero-rated sales;
2. that input taxes were incurred or paid;
3. that such input taxes are attributable to zero-rated or effectively

zero-rated sales;
4. that the input taxes were not applied against any output VAT
liability during and in the succeeding quarters; and
5. that the claim for refund was filed within the two-year prescriptive
period.
Before delving on the merits of petitioner's claim for refund or issuance of Tax
Credit Certificate amounting to Php9,049,266.85, the Court finds it appropriate to
address first the fifth requisite pertaining to the timeliness of the filing of petitioner's
administrative and judicial claim.
Pursuant to the above cited provision, a taxpayer must file an application for
refund or tax credit certificate within two (2) years after the close of the taxable
quarter when the transactions were made.
As for the judicial claim, the applicable provision is Section 112 (C) of the
1997 NIRC, which reads as follows:
"SEC. 112. Refunds or Tax Credits of Input Tax. —
xxx xxx xxx
(C) Period within which Refund or Tax Credit of Input Taxes shall be
Made. — In proper cases, the Commissioner shall grant a refund or issue the tax
credit certificate for creditable input taxes within one hundred twenty (120) days
from the date of submission of complete documents in support of the application
filed in accordance with Subsection (A) hereof. TcIHDa
In case of full or partial denial of the claim for tax refund or tax credit, or
the failure on the part of the Commissioner to act on the application within the
period prescribed above, the taxpayer affected may, within thirty (30) days from
the receipt of the decision denying the claim or after the expiration of the one
hundred twenty-day period, appeal the decision or the unacted claim with the
Court of Tax Appeals."
Thus, the taxpayer may appeal to the Court of Tax Appeals within thirty (30)
days from receipt of the decision or from inaction of the Commissioner of Internal
Revenue after the lapse of the one hundred twenty (120)-day period via a Petition for
Review.
In Commissioner of Internal Revenue v. Aichi Forging Company of Asia, Inc.

("Aichi case"), the Supreme Court emphasized that failure to await the decision of the
Commissioner or the lapse of 120-day period prescribed in Section 112 (C) of the
1997 NIRC amounts to a premature filing of a judicial claim. And the premature filing
of a claim for refund/credit of input VAT before the CTA warrants a dismissal
inasmuch as no jurisdiction was acquired by the CTA.
In the consolidated case of Commissioner of Internal Revenue v. San Roque

Power Corporation; Taganito Mining Corporation v. Commissioner of Internal
Revenue; and Philex Mining Corporation v. Commissioner of Internal Revenue,
16(16) the Supreme Court emphasized that a condition to a valid judicial claim of
refund or credit for VAT is compliance with the 120+30-day mandatory and
jurisdictional periods. To resort to the courts before the said period is viewed as a
patent violation of the doctrine of exhaustion of administrative remedies. The cited
case only provides for a period spanning December 10, 2003 to October 6, 2010,
which was the period from the issuance of BIR Ruling No. DA-489-03 until the Aichi
case was adopted, as the only exemption to this rule. EICDSA
In the present case, it is clear from the table summary below that the
administrative claim was filed within the period prescribed under the 1997 NIRC:
Taxable Year Quarter End of Quarter Administrative

Claim Filed
2010 2nd June 30, 2010 June 27, 2012
3rd September 30, 2010
4th December 31, 2010
2011 1st March 31, 2011
2nd June 30, 2011
3rd September 30, 2011
4th December 31, 2011
On the other hand, the judicial claim was clearly filed prior to the expiry of the
120 days allowed by the 1997 NIRC for the Commissioner to decide on the claim:
End of 120 days for the End of 30 days from Judicial Claim
Commissioner to decide on the expiration of the Filed
the claim 120 days
October 25, 2012 November 24, 2012 June 28, 2012
Technical rules of procedure are designed not to frustrate the ends of justice,
rather, they are intended to effect the proper and orderly disposition of cases, 17(17)
and thus strict compliance with procedural rules is required to facilitate the orderly
administration of justice. 18(18)
Due to petitioner's filing of a judicial claim before the lapse of the mandatory
120-day period under Section 112 (C) of the 1997 NIRC, the Court finds no other
recourse but to dismiss the petition on the ground of the lack of jurisdiction. The
Court finds no need to delve further into the other issues presented by the parties.
WHEREFORE, in view of the foregoing, the Petition for Review is hereby

DENIED for lack of jurisdiction. ESTCHa
SO ORDERED.
(SGD.) LOVELL R. BAUTISTA

Associate Justice
Court of Tax Appeals
Esperanza R. Fabon-Victorino and Ma. Belen M. Ringpis-Liban, JJ., concur.
Footnotes
1. Records, CTA Case No. 8509, pp. 221.
2. Id., p. 6.
3. Id., pp. 1389-1419.
4. Id., p. 189-190.
5. Id., pp. 56-72.
6. Id., pp. 189-190.
7. Id., pp. 221-227.
8. Id., pp. 1072-1108, with attachments.
9. Id., pp. 1364-1365.
10. Id., pp. 1365-1367.
11. Id., p. 1370.
12. Id., pp. 1389-1419.
13. Id., pp. 1421-1422.
14. Id., p. 1425.
15. Id., pp. 189-190.
16. G.R. Nos. 187485, 196113, 197156, February 12, 2013.
17. Ismael V. Santos, Alfredo G. Arce and Hilario M. Pastrana v. Court of Appeals,
Pepsi Cola Products Phils., Inc., Luis Lorenzo, Jr. and Frederick Dael, G.R. No.
141947, July 5, 2001, 360 SCRA 512.
18. PET Plans, Inc. v. Court of Appeals, G.R. No. 148287, November 23, 2004, 443
SCRA 510.
Endnotes
1 (Popup - Popup)
1. Records, CTA Case No. 8509, pp. 221.
2 (Popup - Popup)
2. Id., p. 6.
3 (Popup - Popup)
3. Id., pp. 1389-1419.
4 (Popup - Popup)
4. Id., p. 189-190.
5 (Popup - Popup)
5. Id., pp. 56-72.
6 (Popup - Popup)
6. Id., pp. 189-190.
7 (Popup - Popup)
7. Id., pp. 221-227.
8 (Popup - Popup)
8. Id., pp. 1072-1108, with attachments.
9 (Popup - Popup)
9. Id., pp. 1364-1365.
10 (Popup - Popup)
10. Id., pp. 1365-1367.
11 (Popup - Popup)
11. Id., p. 1370.
12 (Popup - Popup)
12. Id., pp. 1389-1419.
13 (Popup - Popup)
13. Id., pp. 1421-1422.
14 (Popup - Popup)
14. Id., p. 1425.
15 (Popup - Popup)
15. Id., pp. 189-190.
16 (Popup - Popup)
16. G.R. Nos. 187485, 196113, 197156, February 12, 2013.
17 (Popup - Popup)
17. Ismael V. Santos, Alfredo G. Arce and Hilario M. Pastrana v. Court of Appeals, Pepsi
Cola Products Phils., Inc., Luis Lorenzo, Jr. and Frederick Dael, G.R. No. 141947,
July 5, 2001, 360 SCRA 512.
18 (Popup - Popup)
18. PET Plans, Inc. v. Court of Appeals, G.R. No. 148287, November 23, 2004, 443
SCRA 510.

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THIRD DIVISION

[C.T.A. CASE NO. 8509. November 12, 2014.]

PERCEPTION GAMING, INC., petitioner, vs. BUREAU OF

The Parties 2(2)

Petitioner Perception Gaming, Inc. ("PGI") is a corporation existing by virtue

Respondent is the Bureau of Internal Revenue, Revenue District Office 47,

As stated in the Memorandum submitted by petitioner through registered mail

"4.1. Petitioner was incorporated on December 8, 2006, the primary

4.2. Specifically, Petitioner is engaged in the business of supplying and

4.3. Petitioner is registered with the Bureau of Internal Revenue (BIR)

Original Quarterly July 20, 2010 101000003947728

Original Quarterly October 26, 2010 101100004425954

Original Quarterly January 25, 2011 101100004707984

Original Quarterly July 25, 2011 101100004966565

Original Quarterly October 19, 2011 101100005215874

Original Quarterly March 2, 2012 101200005685502

Period Effectively Zero- Output VAT Purchases (P) Input VAT

2nd Quarter CY 5,409,553.92 649,146.47 1,310,617.42 157,274.09

4.8. To date, Respondent has yet to act on Petitioner's administrative

"SPECIAL AND AFFIRMATIVE DEFENSES

4. Respondent reiterates and repleads the preceding paragraphs of the

5. Petitioner's claim for refund is still subject to investigation by the Bureau

12. In the case of Commissioner of Internal Revenue vs. Aichi Forging

'However, notwithstanding the timely filing of the

'SEC. 112. Refunds or Tax Credits of Input Tax. —

xxx xxx xxx

'(D) Period within which Refund or Tax Credit of Input

'In case of full or partial denial of the claim for tax

'Section 112(D) of the NIRC clearly provides that the

'In this case, the administrative and the judicial claims

'Respondent's assertion that the non-observance of the

'There is nothing in Section 112 of the NIRC to support

'In fact, applying the two-year period to judicial claims

xxx xxx xxx

'In fine, the premature filing of respondent's claim for

15. In the present case, petitioner's leased of gaming equipment to 'PAGCOR

'Although the law does not specifically mention PAGCOR's

17. The pronouncement of the Highest Magistrate in holding that PAGCOR

Moreover, the Supreme Court undoubtedly extends the tax exemption

On December 20, 2013, petitioner filed its Memorandum through registered

Hence, this Decision. SaCDTA

"IS PETITIONER ENTITLED TO A VAT REFUND OF

The Ruling of the Court

The 1997 National Internal Revenue Code, as amended, ("1997 NIRC")

"SEC. 112. Refunds or Tax Credits of Input Tax. —

(A) Zero-Rated or Effectively Zero-Rated Sales. — Any

1. that there must be zero-rated or effectively zero-rated sales;

2. that input taxes were incurred or paid;

3. that such input taxes are attributable to zero-rated or effectively

"SEC. 112. Refunds or Tax Credits of Input Tax. —

xxx xxx xxx

In Commissioner of Internal Revenue v. Aichi Forging Company of Asia, Inc.

In the consolidated case of Commissioner of Internal Revenue v. San Roque

Taxable Year Quarter End of Quarter Administrative

2010 2nd June 30, 2010 June 27, 2012

3rd September 30, 2010

4th December 31, 2010

2nd June 30, 2011

3rd September 30, 2011

4th December 31, 2011