CTA rejects P38.68-million VAT refund appeal over late filing

THE Court of Tax Appeals (CTA) has rejected an appeal by Pilipinas Kyohritsu, Inc.  to review its claim for P38.68 million in excess value-added tax (VAT) for 2012, citing late filing of the petition.

The 11-page CTA First Division decision was dated Nov. 8 and made public on Nov. 11 filed on time.

“Prescription has set in at the time of its filing, thus, depriving the court of any jurisdiction to act on the case,” according to the ruling written by Associate Justice Catherine T. Manahan.

“In order for the court or an adjudicative body to have authority to dispose of the case on the merits, it must acquire, among others, jurisdiction over the subject matter,” she added.

The company filed the petition for review on April 21, 2017, which was more than 30 days after receiving the Bureau of Internal Revenue’s denial letter on March 23 that year.

According to the tax code, a taxpayer has 30 days from receipt of an adverse decision to file an appeal for review with the CTA. 

The commissioner of internal revenue has 120 days to act on a disputed tax assessment; otherwise, the decision would be final. 

The company manufactures wiring harnesses for cars and is a unit of the Sumitomo Electric group. — John Victor D. Ordoñez