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CITY GOVERNMENT OF MUNTINLUPA
CTA EB 386 February 12, 2009
UY, J:
Doctrine: On Tax Refund and Tax Credit: The reckoning periods
for the filing of a claim for refund in Sec 196 of the LGC should
be interpreted so as to accomplish the evident purpose viz the
settlement of the rights of the taxpayer vis-a-vis the
government, at the earliest opportunity. The phrase from the
date the taxpayer becomes entitled to a refund or credit in
Sec 196 should not be interpreted to mean the finality of the
decision of a court declaring the tax measure void, even
without a timely claim for refund.
Facts:
Alabang Supermarket Coproration operates the Alabang branch
of the Makati Supermarket, a distributor and dealer of, among
others, liquor, beer, wine, distilled spirits, cigarettes and
tobacco products.
On December 1998, Muntinlupa enacted City Ordinance 98-015
imposing a 3% business tax on the sale and distribution of
alcoholic beverages and tobacco products.
Petitioner paid but was aggrieved by said erroneous collections
and wrote the BLGF of DoF asking for an opinion regarding the
3% business tax. BLGF issued an opinion in their favour.
2001, Petitioner then wrote the City Treasurer of Muntinlupa
seeking the refund/tax credit of the 3% business tax paid for
the period Jan 1999 to Dec 2000.