THE COURT of Tax Appeals (CTA) has denied Manulife Data Services, Inc.’s refund claim worth P98.84 million representing its excess value-added tax (VAT) payments for the fiscal year of 2017.
In a 13-page decision dated Aug. 10, the tribunal said it did not have jurisdiction over the case since the firm failed to appeal the commissioner of internal revenue’s (CIR) denial of its claim on time.
“Upon its receipt, petitioner (Manulife Data Services) could have simply and immediately furnished the BIR’s letter to its counsel informing it that its refund/tax credit claim has been denied,” Associate Justice Lanee S. Cui-David said in the ruling.
Under the Tax Code, taxpayers have 30 days to dispute the CIR’s denial of a refund claim before the CTA, upon receipt of the decision.
Manulife Data Services argued that the internal revenue commissioner’s denial letter was invalid since it was addressed directly to the firm instead of an authorized representative.
The tax tribunal disagreed, saying the firm failed to show any provision or law that supported its claim that denial letters can only be presented to a company’s appointed tax representative.
“When the provisions of the law are clear, plain, and free from ambiguity, they must be given their literal meaning and applied without any interpretation,” the tax court said.
“Lack of jurisdiction of the court over an action or the subject matter of an action cannot be cured by silence, acquiescence, or even by express consent of the parties.” — John Victor D. Ordoñez