THE Court of Tax Appeals (CTA) has denied Pacific Plaza Condominium Corp.’s P3.19-million refund claim of alleged wrongly paid value-added tax (VAT) for failing to prove that it paid the said amount.
In a 21-page decision dated Feb. 10, the CTA Special Second Division said the firm did not provide the appropriate invoices for the third and fourth quarters of 2017 that showed its payment of VAT to the Bureau of Internal Revenue (BIR).
“A perusal of the evidence offered by petitioner shows that it did not adduce evidence to prove the allowable input tax declared in its VAT returns,” according to the ruling penned by Associate Justice Lanee S. Cui-David.
“To reiterate, in a claim for tax refund or credit of erroneously or excessively paid tax, the applicant must prove not only entitlement to the claim but also the fact of erroneous payment to the BIR.”
Under the country’s revenue code, a taxpayer must prove taxes it mistakenly paid through official VAT receipts of its domestic transactions.
The tax tribunal noted that the company did not present receipts that proved its entitlement to input tax credits that it allegedly used to pay the VAT to the BIR.
The firm is a non-stock and non-profit corporation registered with the Securities and Exchange Commission that manages and maintains the Pacific Plaza Condominium project in Makati City.
“Since taxes are the lifeblood of the government, tax laws must be faithfully and strictly implemented,” the court said.
“The taxpayer has the burden to show that it has strictly complied with the conditions for the grant of the tax refund.” — John Victor D. Ordoñez