SUGON, MARU JOSHUA G.

BTX 113 BDF

Saturday 9AM-12NN


G.R. No. 171307
August 28, 2013
J.R.A. PHILIPPINES, INC., Petitioner,
vs.
COMMISSIONER OF INTERNAL REVENUE, Respondent.


J.R.A. Philippines, Inc. is a VAT and Philippine Economic
Zone Authority (PEZA) registered corporation engaged in the
manufacture and export of ready-to-wear items. It claimed to
have paid the aggregate sum of P7,786,614.04 as excess input VAT
for the calendar year 1999, which amount it purportedly used to
purchase domestic goods and services directly attributable to
its zero-rated export sales. Alleging that its input VAT
remained unutilized as it has not engaged in any business
activity or transaction for which it may be liable for output
VAT, petitioner filed four separate applications for tax refund
with the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback
Center of the Department of Finance.

In this case, the petitioner is registered with PEZA, so it
was not subject to value added tax as provided under The Special
Economic Zone Act of 1995 and it is not entitled to credit its
input VAT. The petitioners unutilized input VAT for 1999 was
not properly documented. Here, the CTA division rendered a
decision denying petitioners claim. According to the records,
it show that all of the export sales invoices presented by
petitioner not only lack the word zero-rated but also failed
to reflect its BIR Permit to Print as well as its TIN-V. Thus,
it cannot be gainsaid that it failed to comply with the above-
stated invoicing requirements, thereby rendering improper its
claim for tax refund. Clearly, compliance with all the VAT
invoicing requirements is required to be able to file a claim
for input taxes attributable to zero-rated sales.

A VAT-registered taxpayer is required to comply with all
the VAT invoicing requirements to be able to file for a claim
for input taxes on domestic purchases for goods or services
attributable to zero-rated sales.



Reaction about the current tax system for individuals
compare to the partnerships and corporations. I think the
maximum of 32% for individuals earning purely compensation
income and individuals engaged in practice of profession is too
high compare to the normal tax of 30% to businesses; its
imbalanced. Our existing law allows several deductions for these
businesses compare to our professionals especially our
teachers/professors who can only claim a personal exemption of
50,000 and an additional 25,000 for each dependent they support
but a limit of 4 qualified dependents. The income of
teachers/professors is already net of tax when they received it
because schools and universities are required to withhold tax
from their income. Businesses also pass the burden of VAT to the
consumers. Im not talking about the amount the businesses and
professionals pay to BIR for their income tax, what Im concern
is the level of rate that is being applied to both.