Tax court denies Nokia’s refund bid

THE Court of Tax Appeals (CTA) En Banc has denied Nokia (Philippines), Inc.’s petition for review for lack of merit, affirming the Court’s First Division’s decision which dismissed the claim for refund over unutilized input value-added tax (VAT) attributable to zero-rated sales for 2011 amounting to P55,134,694.13.

In the Aug. 17, 2018 decision, the CTA En Banc found the petition without merit as

Nokia Philippines filed a petition for review before the CTA First Division ahead of the allowed period and was not able to raise new matters.

Nokia Philippines applied before the Bureau of Internal Revenue (BIR) an administrative claim for refund over unutilized input VAT worth P55,134,694.13 for 2011 on March 1, 2013, which is within the prescribed period of the Tax Code.

Section 112 (A) of the Tax Code stated that VAT registered person with zero-rated or effectively zero-rated sales may “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” within two years after the close of the taxable quarter.

Nokia Philippines prayed to extend the submission of documents to support the application until June 17, 2013.

The BIR has 120 days to grant the issuance of refund or tax credit certificate starting June 17, 2013. However, Nokia filed its petition for review to the CTA on July 29, 2013 when the 120day period would only prescribe on Oct. 15, 2013.

“Thus, petitioner should have waited until Oct. 15, 2013 before filing the Petition for Review before the Court in Division,” the decision read.

According to Section 112 (C) of the Tax Code, the BIR shall grant a refund or issue tax certificate within 120 days from the submission of complete documents in support of the application.

The CTA En Banc also noted that there were no new matters raised by Nokia Philippines.

“There being no new matters or issues raised in the Petition for Review before this Court and there being no reversible error committed by the Court in Division, the Court En Banc finds no cogent reason to disturb the assailed Decision and Resolution,” the decision read. —