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PBC vs. CIR

PBC purchased documentary stamps from BIR and loaded them into its metering machine for various repurchase agreements from 2004 to 2006. PBC claimed the agreements were exempt from documentary stamp tax and filed a refund claim. CTA initially ruled some agreements were exempt and the refund amount was P10 million, but after appeal the refund was reduced to P5 million as some amounts were barred by the 2-year prescriptive period. The Supreme Court ultimately ruled the prescriptive period begins from the date the stamp is imprinted on the taxable document, not the date of purchase or loading into the metering machine. Therefore, the CTA ruling reducing the refund amount due to amounts outside the 2-year period was affirmed.

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269 views1 page

PBC vs. CIR

PBC purchased documentary stamps from BIR and loaded them into its metering machine for various repurchase agreements from 2004 to 2006. PBC claimed the agreements were exempt from documentary stamp tax and filed a refund claim. CTA initially ruled some agreements were exempt and the refund amount was P10 million, but after appeal the refund was reduced to P5 million as some amounts were barred by the 2-year prescriptive period. The Supreme Court ultimately ruled the prescriptive period begins from the date the stamp is imprinted on the taxable document, not the date of purchase or loading into the metering machine. Therefore, the CTA ruling reducing the refund amount due to amounts outside the 2-year period was affirmed.

Uploaded by

Marife Minor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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155.

PBC vs CIR

G.R. No. 194065. June 20, 2016

FACTS: PBC purchased documentary stamps from the BIR and loaded them to its DS metering machine.
There were several repurchase agreements executed with BSP form March to December 2004. PBC
purchased documentary stamps from the BIR and loaded them to its DS metering machine. PBC claimed
that the repurchase agreements were not subject to the documentary stamp tax (DST). Thus, on 12 May
2006, it filed with the BIR an administrative claim for the issuance of tax credit certificates for the alleged
erroneous payment of the DST. PBC alleged that BIR did not act on its claim. Subsequently, PBC filed a
petition for review with CTA.

CTA 2nd division: held that repurchase agreements were exempt from DST under Sec 9 of RA 9243. PBC
had substantiated only P10,633,881.20. P3,072,521.60 was barred by prescription. Only the claim for the
remaining P7,561,359.60 fell within the 2 year prescriptive period. The CTA Division reckoned the counting
of the two-year period from the date of the Confirmation Letters of the repurchase agreements.

CTA en banc: refundable amount was further reduced to P5,238,495.40 representing the erroneously paid
DST that had not yet been barred by prescription.

ISSUE: WON claim for refund of an erroneously paid DST must be within 2 years from the date of its
payment.

HELD: DS metering machine users, the payment of the DST upon loading/reloading is merely an advance
payment for future application. The liability for the payment of the DST falls due only upon the occurrence
of a taxable transaction. Therefore, it is only then that payment may be considered for the purpose of
filing a claim for a refund or tax credit. Since actual payment was already made upon loading/reloading of
the DS metering machine and the filing of the DST Declaration Return, the date of imprinting the
documentary stamp on the taxable document must be considered as the date of payment contemplated
under Section 229 of the NIRC.

Under Section 229 of the NIRC of 1997, the claim for a refund of erroneously paid DST must be within two
years from the date of payment of the DST. When read in conjunction with Section 200 of the same Code,
Section 229 shows that payment of the DST may be done by imprinting the stamps on the taxable
document through a DS metering machine, in the manner as may be prescribed by rules and regulations.

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