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Commissioner of Internal Revenue Vs. Far East Bank & Trust Company, etc

COMMISSIONER OF INTERNAL REVENUE, Petitioner, versus FAR EAST BANK & TRUST COMPANY (NOW BANK OF THE PHILIPPINE ISLANDS), Respondent

G.R. No. 173854 | 2010-03-15

D E C I S I O N


DEL CASTILLO, J.:

Entitlement to a tax refund is for the taxpayer to prove and not for the government to disprove.

This Petition for Review on Certiorari assails the January 31, 2006 Decision[1] of the Court of Appeals (CA) in CA-G.R. SP No. 56773 which reversed and set aside the October 4, 1999 Decision[2] of the Court of Tax Appeals (CTA) in CTA Case No. 5487. Also assailed is the July 19, 2006 Resolution[3] of the CA denying the motion for reconsideration.

The CTA found that respondent Far East Bank & Trust Company failed to prove that the income derived from rentals and sale of real property from which the taxes...