CTA dismisses tax refund claim of Total

The Court of Tax Appeals (CTA) has cancelled the 111 million tax refund claim of Total (Philippines) Corporation for submitting late additional documentary evidence.

The court en banc affirmed the resolution of its Special First Division which did not only dismiss the claim, but instead asked the oil company to pay 206 million in deficiency tax.

In filing a motion for reconsideration (MR), Total said there was a need for a new trial because the newly discovered evidence would show that it has no outstanding tax liabilities.

Total's tax refund claim represented unused input value-added tax (VAT) related to VAT zero-rated sales in 2009.

The full court said its division was right in rejecting the MR sought to present newly discovered evidence which Total said Total claimed not available during the trial like Import Entry and Internal Revenue Declarations, suppliers sales invoices and official receipts.

The court noted that these documents were not offered as evidence during the proceedings and presented only when it filed the MR.

It said that under the Rules of Court "the court shall consider no evidence which has not been formally offered," adding that evidence not offered should be excluded.

It said it was negligent on the part of Total not to submit the information during the proceedings and granting Total with new trial would be tantamount to "rewarding an act of negligence with undeserved tolerance."

The court also cited a Supreme Court ruling (Ombudsman vs Coronel) which stated that the presentation of forgotten evidence is disallowed because it results in a piecemeal presentation of evidence, a procedure that is not in accord with the orderly justice and serves to delay the proceedings resulting in "endless review of decisions."