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Manila Bulletin devider Business devider BIR: SC denies San Miguel tax refund claim

BIR: SC denies San Miguel tax refund claim

Published Nov 15, 2023 04:36 am

At A Glance

  • San Miguel Corp. (SMC) lost a P30 million tax refund claim to the Bureau of Internal Revenue (BIR).<br>The Supreme Court (SC) ruled that SMC was not eligible for a refund of its documentary stamp tax (DST) on inter-company advances from 2009.<br>The SC held that a 2011 case law did not prejudice SMC and merely interpreted a tax law in effect since December 23, 1993.<br>The BIR's stand was supported by the SC, stating that tax refund applications must meet substantive and formal requirements, including the legal basis and supporting documentation.<br>The Court of Tax Appeals initially granted a portion of the tax refund claim, citing good faith in filing the petition.<br>However, the SC overturned it, stating that SMC couldn't claim good faith based on previous BIR issuances not issued in its favor and the absence of a favorable BIR ruling on DST exemption for its advances to related parties.

San Miguel Corp. (SMC) has lost a P30 million tax refund claim to the Bureau of Internal Revenue (BIR), Revenue Commissioner Romeo D. Lumagui announced.

The BIR chief said the Supreme Court (SC) ruled that SMC was not eligible for a refund of its documentary stamp tax (DST) on inter-company advances from 2009, citing Section 179 of the Tax Code. 

The high court held that a 2011 case law did not prejudice SMC, emphasizing it merely interpreted a tax law in effect since December 23, 1993. 

Lumagui said the SC supported the bureau's stand that tax refund applications must meet substantive and formal requirements, including the legal basis and supporting documentation.

 The Court of Tax Appeals had earlier granted portion of the tax refund claim, citing good faith in filing the petition.

But SC overturned it, asserting that SMC couldn't claim good faith based on previous BIR issuances not issued in its favor and highlighting the absence of a favorable BIR ruling on DST exemption for its advances to related parties.

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Bureau of Internal Revenue (BIR) BIR Commissioner Romeo Lumagui Jr.
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