Fort Bonifacio Development Corporation (FBDC) vs. Commissioner of Internal Revenue (CIR) Summary

FORT BONIFACIO DEVELOPMENT CORPORATION, Petitioner. versus COMMISSIONER OF INTERNAL REVENUE and REVENUE DISTRICT OFFICER, REVENUE DISTRICT NO. 44, TAGUIG and PATEROS, BUREAU OF INTERNAL REVENUE,

G.R. No. 173425 | 2012-09-04

Knowledge entry

Taxation Law; Value-Added Tax; Sources of input tax

Prior payment of taxes is not necessary before a taxpayer could avail of the 8% transitional input tax credit
A transitional input tax credit is not a tax refund per se but a tax credit
Prior payment of taxes is not required in order to avail of a tax credit
Section 112 of the Tax Code does not prohibit cash refund or tax credit of transitional input tax in the case of zero-rated or effectively zero-rated VAT registered taxpayers, who do not have any output VAT
A taxpayer who erroneously or excessively pays his output tax is still entitled to recover the payments he made either as a tax credit or a tax refund

EN BANC

D E C I S I O N

DEL CASTILLO, J.:

Courts cannot limit the application or coverage of a law, nor can it impose conditions not provided therein. To do so constitutes judicial legistation.

This petition for Review on Centionari under Rule 45 of the Rules of Court assails the July 7, 2006 Decision¹ of the Court of Appeals (CA) in CA-G.R. SP No. 61436, the dispositive portion of which reads:

WHEREFORE, the instant petition is hereby DISMISSED. ACCORDINGLY, the Decision dated October 12, 2000 of the Court of Tax Appeals in CTA Case No. 5735, denying petitioner's claim for refund in...