r~ ep .t b l i c o f t I )(~ rh i 1. i p p i n P.

s
COURT OF TAX APPEALS
Qu ezo n C i ty

INVESTORS FINANCE CORPORATION,

<Forerly FNCB Finance}
P et i ti o n et~,

C. T.A. CASE NO. 3717

COMMISSIONER OF INTERNAL REV ENUE,

Respondent .
X ---- ---------------------- X

D E C 1: s 1: 0 N

Th is is a c l aim fo t~ t ax c t~e d it i n the amou n t of

P 2,583 , 901.28 represe n ting t he excess c t~ e d it a b 1 e

in c om e taxes over th e in co me t ax du e from p etit ione r

for taxabl e year 1981 whi c h we re dedu cte d a nd withheld

b y v ar i ou s pa yers from petitioner ' s in c ome.

The facts_as g athere d f r om th e rec ord s of the

c a s e are stated below ; .J

P e tit i onet~, In v e s t cn~s Fi n a nce

form e r ly F NCB Fi n ance, i s a d o mestic corpo r atio n duly

organized a n d aut h oriz ed to eng a g e i n t he financing

busine ss . It d et~ives i'ts income p r imarily ft~om

fin a n c in g of r ecei vables a n d e quipme n t l eas ing . For

t a xa b le y e ar en d ed December 3 1 , 19 B 1 , petition et'' s

annu a l corpo rate i n co me tax re t u r n whi c h wa s filed on

Apt'i l 1982 s howe d a refunda ble am o unt of

PE.,810, 2 54.09 . An a me nd e d r eturn was sub s equentl y

filed ton Nov e mb et' :1.2, 1 982 to s h ow its t n .te i n c ome and

d eductions i ncluding creditable inco me t axes f or th e

4lu
 - DEC I SION .....
C. T . A. Ca s e No . 37 17

i~ --

taxahle year i n ques tion. T h e tota l ,:\ITJOI..m t l' efu n dable

as a dju s t ed is P2 , 583,90 1 .28 and this was arrived at

as follol'ls;

Taxable I nco~e p 5,684,438. 00

Corporate lncoee Tax
p 1001000.00 X 25~ 25,000. 00
51584,438,00 X 35~ 1, 954 ,554. 00
TOTAL TAX DUE p 1, 979, 551t, 00

Less : Previous Year' s Ta~ Credit

!Net of TCC of P3,039 1 5G7.94
grant~d by BIRl 2, 113,627.35

A~ount of Taw Credit Availabl e for succeeding

Ouaterly Incoe Tax

Less : 1981 Credit able Withho lding Tax 1 2, 449,827.93 t

lUTIL AltUfl REF1.flDABlE !P 2,583,901.28 )
================

lln Apr~ i-1 8, 1'383 , p et i"l~ ioner' t tw-ough !JG IJ an d

Co mp a ny filed wi th the Bureau of Internal

claim for tax credit i n the amount of P2,58 3 , 90 1.28 .

filed or. J .:TIIH.\ i;H' y 5, 1 '3SL~ in l1 t ' Ch? 1~ t 0

two - year period from t he d ate cf pay me n t of th e ta x

within whic h to judicially c l aim for tax c re dit.

In its answer (p. 17-20, CTA record s ), resp on d ent

prayed for the dismissa l of the p e t it i on o n, a mong

other grounds, that it states no cause o f ac ti o n, that

c lc.-dm fo r refund is p ending investigation, its r ight

 - DECI S ION -
C. T.A. Case No. 3717

....7

ha s pt'esct'ibed, the a mount vJitt1held must be shown to

have been paid to the gov er nm e nt; and burden of proof

lies on the taxpayer to show that taxes paid were

erroneously or illeg a lly collected.

Hea ri ng s of this case were repea tedly p o s tpo ned,

and the Court res olv e d to achieve it upon motion of

petitioner's c ounsel, with conformity of respondent,

on the ground that its claim fo r tax credit i s still

being administt,atively pt'oces se d in the BIR. (p. 27,

Wh en hearing was re sumed, p e t i t i o n e t' ' s new

counsel formally offered as evidence its exhibits.

<Se e li s t on p 55-192, CTA, Re sp ondent

inter posed no objection except for the purpo se for

which they we re off er ed as evidence. Accot'dingly, the

Court ad mitted the same wi thout prejudice to the

.)

Court' s evaluation of their probative valu e and

purpose for whi c h they were offered as eviden ce .

submitted by the revenue examiner

d a ted May 9, 1985 (p.220-221, BIR records) showed that

aft er inve s tigation, petition er has incurred on income

tax deficiency for the year 1981. Of the aliened

credit a ble income taxes withheld for 1981 amounting to

p;;:: , 583, 901. 28, the amount of P 2 ,449,8 2 7.93 h as been

I
applied against the deficiency in co me tax due after

4 1~
 - DEC ISION -
C.T.n . Case No. 3717
.)

- 4 -

inve s tig atio n. In ad d ition , the amount of P134,073. 35

was found t o pertain to a prior year a nd wa s not

a ppt'ov ed <BI R Recot'ds, page 22 ;~~) A detailed

computation is sho wn below:

Net Inco1e Per Return p 5,684,438.00

Add: Unallowable Deductions
Interest expense dis llowed p. 1,382,000.54
Taxes and licenses disallowed 39,177.99 1,421,178.59
Net lncoe p@r Investigation p 7,105,616.47
Inco1e Tax Due Thereon
p 100,000.00 ~ 25~ 25, 000.00
p 71 0054 1 616.47 X 35~ 2, 451 ,%6.00 2, 476, 966.00
Less : 1981 Creditable Withholding Tax
Per Return 2, 583, 901. 28
Less: Pertaining to prior year 134,073. 35 2,449,827.93
Deficiency Tax Per Investigation p 27,138.07

Th e only issue for res olution of this Court is

whether or not"pet'ti oner is entitle d to a tax cre dit

of P2,583,901.28 representing excess creditable fncome

taxe s for taxable year 1981.

It is significant to note is that in the

investigation of peti tio n et' ' s clai m fot' tax ct'edit ,

ther e was instead found due from petitione~ allege d

deficiency income tax which respondent automatically

set-off against the amount c l ai med as excess

creditable income tax. The result was t hat petitioner

has no l onget~ any excess Ct'e di ta ble 'income tax but a

defi ciency tax do..te . <Ibid.)

4 1~
 - DECISION --
C.T.A. Case No. 37 1 7

- 5 .....

The ac t of respondent smacks of whim or caprice .

was arb it rar y disallowance of d t?d uct i bl e

ex pen ses to create a defi ciency tax. No . chance ~-Jas

even accorded to petitioner to re bu t the findin g s .

element of due proce ss wa s s or e ly lacking. To

free any g over nment ~ ! action from imputation of legal

infitmity stJff ic:i ent to sp 11 its doom, t here must

exist, both as a pra Pdural an d subst a nt i ve requisite ,

clue rwo r.::ess. (Y'Ilfita-Malate Hote l and Motel Operators

nssociatjon v~ City Mayo,.~ , 20 SCR/1 8 49.) Collection

of ta xes shou ld be made in accordance with law as any

will negate the very t' t?a so n f Ot'

govern me nt itself. (Reyes v. 111manzor, 196 SCRI1 322.)

fixe s and determines th~ tax

liability of a taxpayer. <Aranas, Upd at ed National

I nt er na 1 Reve nue Co d e (7th eeL 1988) p.22 . ) Wi thOI..\t

an asse ss m n-c, ther~ is no debt from taxpayer, and

is no obligation on his part which can be

enfor-c ed in a n ction. <Galusha v. Wendt, U .4 Io~1a

E,(I L~ . ) According ly, respondent ca nnot b e a l lowed to

apply the tax cr edit claim e d a gainst the alleged

deficiency tax wh ~n no asse s sme n t h as b e en made . In

lik e manner that a t~Hp aye r cannot r efuse to pay a tax

on the grou n d th at th~ gove rnment ow es him a n a mount

equal to or greater th a n the tax being collected

41J
 -- DECI S ION -
C.T .A. Case No. 37 17

- E. --

<F rancia v. Appellate Cou r t, G.R. No. 76749, June 28 ,

1988)' the government ca nnot auto ma tically set-off

a lleged deficiency tax against a claim for tax credit.

What is sauce for the goo se is a l so sauce fot' the

gancj et'. To borrow the words of the Supreme Court in

the case of Collector v. University of Sto. Tomas,

L - 1127'+, Novembet' c~ 8, 1958, citing the t'ea s on s

non --a pplic a ti on of the doctt ine of e quitable

recoupment in our jurisdiction.

X>< X X>< X ><><X

"And thi s not With() IJt it s

resu lt ing danger, because a
Commissioner of Intern a l Revenue to
play sa fe an d have a fund ava ilable
fo r sa id se t -of f and recoupment of a
tax which he h a d f a il ed and n e glect e d
to coll~ct may be tempt e d to make
illegal assessment and co ll ectio ns,
a nd the taxp aye r would be helpless
bec a use however illega l and
unauthorized the assess men t ma y be,
the Commi ssi oner ca n always e nforce
t h e sa me by 1 e v y and d i s t t' .:d. n t x x x "

XXX XXX XXX

Premises considered, We do not beli eve that

t'es pond e nt can be allowed to s et-off

alleged defi c iency tax a gainst petitioner's clai m for

tax ctedit. To allow the same is fr a ught with d a nger

a nd pl ace claimants of refund and/or tax c redit at the

 - DECHJION -
C.T.A. Case No. 3717

.,
.
I

the requisites for ent itl ement to refund are complied

with. T i me and <.1 !J a i n t hi s Co '-ll' t h a~, t~ 1.1 1e d t hat in

c 1 a i ms f o r' t' e f un d I t <:>. x c r' e cl i. t t) f exc ess ltJ i thhold i n0

taxes petitioner-taxpayer ne>ed only the

following:

(1) that it fil~d a claim for refund within the

( now :::-~30) of the N;:~.tional In t~n-nctl Revenue Code;

(2) that the income upon which the taxes were

wit hhel d were in clud i 'nth~ return of the r ecipie nt;

and

(3) the fa ct of withhoJdjng is established by ~

copy of statement IBIR Form 17431) duly issu ed by .)

<withholding agent) to the payee 1 showing thf.?

amount paid and ~he a moun t () f ~tl it hh e l d

1
t h et~e fto m.

I n t h e c: .:~ s e b e f o r' e u s , t h P. c 1 a j m f tH' {; ax c t' e d i t

with the BIR and tha petition for rev iew with thP

sea s onably filed on April 8, 1983 and

Janu cn~y 5, 1'38'~, t'espectively. These were well within

the two -year prescriptive period within which to c l ai m

a refund/tax credit which commences tn run at the

e;;w l i Pst, on the date tlf ttHl filing of the finaJ tax

l
Sec.lO, Rev. R~g. No. 6-85; see Pas~o Realty Dev loptent C~rporat ion , CTA C ;e No.
4254 1 Marc 24 1 1993; Ci ytrust Finance Corporati n v. The Co ";soner of In rnal
R~venue, CTA Case No. 4134, No e1 er 11 1 1991; c y ru t Finance orporation (F r erly
I'lvPs ors Fi'l ce Corpor~tio IF !C FinancP) v. Co iss ion l' f Intern l Reven1e 1 CT ~ asP
'o. 4046, Fe!Jruary 24, 1993)

42.i "
 -- DECISION -
C.T.A. Ca s e No. 3 717

- 8 --

on Apt' i 1 5, 1. 98 ;::: . The p e t' i o d t h '" t lapsed

betwe e n th e f i ling a nd c l a im s fot'

r e fund/tax credit wa s less th a n tw o ye a rs.

As to the requirement that the income upon which

the taxe s were withheld were in c luded in the

petitioner presen t ed as documentary eviden ct~ i. t s

Annual Corpo ra t e Income Tax Re turn for 1981 ( Ot i gin a 1

and Amended) tog e ther with the supporting schedules

to establish such fact. (See E><hibits "NE", "NF",

"NG", "NH", "NI ", and "NJ".) H en t a 1 and o t h ~~ t' income

subject to the exp a nded withholding tax were noted to

have been reported as part of th e income for the year

undet' teview.

Pt oof of withholding of taxes fat' 1981 submitted

by petitione r consists of confitmation t' eceipts,

wi thholding tax returns and st a tements/certific a t es of

ta x withh e ld.

This has in many cases di s mis s ed the

allegations of counsels for respondent that the ot h et'

t' e qui t' e me n t s such as the pre s entation of withholding

t <'I. X t' e t u t' n s, offici a 1 t' e c t;! i pt s s h o ~~in g t' em itt an c e of

taxes withheld by the withholding agent and

verification by revenue enforcement officer have to be

pt' e sent ed before the issuance of tax c t' e d i t It e f u n d

I
( c i t yt t'l..l st Finance Corporation v. C o mm i s s i o n e t' of
 -- DE C I f.-J I 01\1 --
C. T.n. Ca s e No. 37 17

-- '3 --

I nt e~~na 1 Rev en..te, CT A Case No. F e b ~ 11a t' y

13'3 3 ; The P hilippine Am erican Life Insurance Company

v. C n mmi s s i o n e t' of Internal Revenue , e-rn Case No.

November' 5, l3'31.; A. Soriano Corpor ation v.

Commi ss i onet~ of Internal Revenue, CTA Case No.

August 7, 1'391; Commonwealth Pacific Co n s ul ta n ts Ltd.

v. Comnli ssionet~ of Int erna l Revenue, CTA Case No .

;=:35.3' May 1 5 , 1 3 8 2 ; At en e o De f'r1 an i 1 a v Com miss i orHn~

of In t ernal Revenue , CTA Case No. 321.3, July 28,

l '38'3. )

E >< H i b i t s f.) t o Z, i n c lu s i v e a s ~o-1 e 11 a s E >< h i b i t s

AA to PP , inc l usive were not considered by the

si nce these e >< h :i. bit s p e t~t c.-d. n to c t'e c:li tab l e income

t c."\><es deducted~ wit hheld and re mitt ed by I nve s tot~s

F in ance as a withholdi ng a gent.

Withh o ld inn taxes not ~a >< ~?s d .te fr~ t.J m the

withholding agen '. Th e y a l'P incomC:' ta>< due from t he

of t he income p ;ayme nt a nd c t~ ed it able

aga in s t the income t a x due them. deducted

an d v-1ithheld by t he wi thholding agent .::n~ e held as

s pec i a 1 f un d i n t t' u s t f ot' t h e g o v e t' n me n t u Tl t i 1 p a i d t o

the co lle ctin g cfficet'. (At' an<.:~~;, Updated Nati o n a i

.J
I nt e t' n a l Revenue Code (7th ed. :1 9 88 ) p.

Petitioner ca nn ot c l aim them as i ts t1 w n c t' e d i. t a b l e

I -
4 (__. l.)
 - DECISION --
C.T.A. Case No. 37 17

- to -

i n come taxes ~tJh i ch a pply C:\l]ai n st its t ax

liabil ity.

Ex hib its SS to ZZ, inclusive; Exhi b its AB to AZ,

inclusive; Exhibits BA to BZ, inclusive and Exhi bit s

CA to CF, inclu s iye were also disregarded by the Cou r t

since th e receipts were i 11 the of

individual s and nothing in the said rece ipts indi cate

that th e amount for' the account of

petitioner'.

Exhibit CG is like wi se ignored for b eing a

lett er o f receipts pu rp ortedly

to payment of taxes withheld . To tal< e up the same

would also n~sul l; in double ctntnt in g si n ce th e

referr~d therei n form part of the evide n ce

p rese nted in support of the claimed creditable income

t C:\){ .

Exhibits FG to FZ , incl usive as wel l as Exhibits

GA to G~, inclu sive do not indi cate th e y e ;:::~t' the

income subjected to wit hholding wa s earned . is

no way to determine evidence pt'ese nt ed

whet h er' the taxes withheld pertain to petition et'' s

1 98 1 income h e nce, they were d isall owed.

Only the followin[~ e><hibi t s wer'e found to

substanti ate petitioner ' s claim of cred itabl e income

taxes withh e ld by various payors, to wit:

4 r..:..
'1
i:
- DECT '3 IfJtl
C.T. n. Case? f'.IIJ. 3 7l7

-- l1 -

Exhibit Withholding ~ In!! of Inco1e A1ount Tax Withheld

CG1-a &b Carter Marketing, Inc. Lease Rental p 21, 8'33.85 p 1, 094.70
CG2-a &b Carter Marketing Ph il s. Inc. Lease Rent 1 21 , 8':!3. 85 1, 0'3 4. 70
CG3-a &b - do - Lease Rental 21,8'33.85 1,094. 70
CG4-a &b - do - LP.ase Rental 20,558. 25 I, 027.91
CG5-a &b - do - Lease Rental 20,558.25 1, 027. 91
CG6-a &b - do - Lease Rental 20, 558.25 1,027.'31
CG7-a &b - do - Lease Rent al 20,558.25 1, 027.91
CG8-a &b Carter Int'l. Corp. Leas e Rental 20, 558.25 1, 027. 90
CG9-a &b - do - Lease Rental 20,558.25 1,027.91
CGIO-a &b - do - Lease Re ntal 13,110. 55 '355.52
CG11-a & b - do - Lease Rent al 19,1 10.55 955.52
CG!2-a &b - do - Lease Rent al 13, 110.55 '355.52
CH A. H. Robins (Phi 1. l Co., Inc, Cat' Rental 111,812. 01 5,410. 77
CI - do - Ci!t' Rental 1llt,9 7.01 5, 71t5, 84
CJ - do - Car Ren tal %,.42. 18 4, 832. 11
CK - do - Car Rental 1!'t, 230.6 5, 711.53
CL ASEA !Phi ls.) Inc. Lease 95,042.01 4.752.10
CM Autosphete, Inc. Car Rental 26,3'30.00 1, 31'3 .50
CN - do - Car Rental 10,556.00 527.80
co Cartel' Matket ing Phils.I nc. Lease Ren ta l 6, 71't.00 335. 70
CP - do - Lease ent al 7, 285.40 36'3.27
co - do - Lease Rental 65,691. 55 3, 284.1 0
CR - do - Leas R ntal 3,0'38. '31 454 .95
cs - do - Lease Rental ~, 693. BO 234. %
CT - do - LPn R n 1 4,':101.00 245.05
cu - do - Lease Rentnl 15,337. 00 766. 84
cv - do - Lease Renhl ~,310 .55 215.52
cw - do - Lease R ent <~ l 4, 310.55 215.52
ex Carter Int'l. Corp. lease Rental 3,090.00 154. 50
CY - do - Lease Rental 13,468.80 673.44
cz Atla Copc:o (rh '1 s. l Inc. Rental 1,012,828.99 50,641.43
Dl1 A lg a~a gd Cre Jeri es Corp. Rental 15,406.20 770.35
DB Beta C e ita! Supply Rental 121 617. iO 630.90
DC ~ do - Rent al 25,235,110 1, 251 . 80
DE Black &Decke r Phils. Inc. Ren t al 4,192.50 209.64
DF - do - Rental LtO, 2G5. 00 2,018.28
DG Ci tibank N.A. EWT (sic) 55 ,650.00 28,432.50
DH - do - [l.IT (sit) 568,650.00 28, 432.50
DI - do - Rent<~! 568,650. 00 28, 432.50
OJ - do - EWT (si c) 8,400.00 420.00
DK - do - EWT (si c) 8,400. 00 420.00
DL - do - Rental 8, 400.00 420. 00
DM - do - EWT (sic ) 8,400.00 420.00
DN - do - EWT (si c) 8, 400.00 420.00
DO - do - WT (sic) 8, 400.00 420.00
DP - do - Rental 8,400.00 420.,00
DO - do - EWT (sicl 8,400. 00 420.00
DR - do - Renta l 8,400.00 420. 00 _,

4r..:d /~
- DECISION -
C.T.A. Ca s e No . 3717 .)

- li~ -

Exhibit Withholding 8Y!ni 1m of Inco1e A1ount Tax Withheld

OS - do - HIT (sicl p 17,7'3?.33 p 88'3.'37

DT - do - EWT (s icl 17, 7'3 3. 33 88'3.'37
DU Cherry Foodal'a!a Rental 405, 3'31. ~8 20, 26'3. 56
DV CDCP Rental 535,324.80 26,766. 24
ow Cooper Laboratories(Phil.llnc. Rental 208,058.40 10,402.'34
ox Concrete Aggregates Corp. Rental 4,'358.55 248.42
DY - do - Rent al 4,963.56 248.42
DZ - do - Rental 5'3,522. 72 2, '381. 04
EA - do - Rental 4,953.55 2't8. lt2
EB - do - Rental 4, '3S8.56 2' 8. '2
EC - do - Rental 4,%8.55 248.42
ED - do - Rental 4,'368.55 248.42
EF C u~ ins Diese l Sales & Rental 8'3,395.80 4,4459.79
Service Corp.
EG Cu ei ns Diesel Sal e Service Rental 128,602. 40 5, 430.12
Corp of the Phil.
EH - do - Rental 89, 395.80 4,459. 79
EI Endo Laboratodes (Ph il.llnc. Car Rental 83, 61t3. '34 4,182. 22
EJ Fire1an 1 s Fund Ins urance Co. Lease 2'2, 581. 38 12, 12'3. Of.
EK - do - Lease '308, 37' 40 45,418.72
EL Fabar Sales, Inc. qental 22,530.72 1,129.53
EM - do - Rental 22,5'30. 72 1,12'3. 53
EN - do - Rental 90,362. 08 4,518. 08
EO First Che ic~l Sales Corp. Rental 7,228.50 351 .Lt4
EP - do - Rental 7,228.50 351.44
m - do - Rental 7, 228. 50 351.44
ER - do - Rental 7, 228.50 351.411
ES DCCD Engineering Corp. . Rental 15,954.60 7'37.74
ET First Worldw ide Marketing Corp. Eqpt Rental 19,718.64 985.92
EU Gilbara Australia Ltd. Rental 42,997.46 2,111'3. 87
EV - do - Rental 12,445.52 2,120.45
EW - do - Rental 28,8&7.62 1,443.37
EX Group Deve 1opers, Inc. Rental 95,818. 00 4, 790.90
EY - do - Rental '377,4 42. 60 48,872.13
EZ Fuji -Haya Elect r ic Corp. Phils. Lease Renta l 217,342. 7(; 10,857. 07
FA Industrial Offset Press Rental 27,270.00 1,363.50
FB - do - Rental 27, 270.00 1,363.50
FC - do - Rental 54,540. 00 2,727. 00
FD Inland Enterprises Co. Rental 54, 068.53 3,077.47
FE Integral Cheical Corp. Rental 84,0,0. 16 4,202.'37
GX Luzon Stevedoring Corp. Lease Rental 524,924.72 30,853.80
GY Lorenzo Shipping Corp. Rental 9'34,532.00 4'3 ,725. 60
GZ Mars1an &Co., Inc. Rent 1, 093,939.5'3 54,5%.98
HA Phil. Acetylene Co. , Inc. Renta l 21, 027. 00 1,051.35
HB - do - Rental 7,009. 00 350.45
HC I - do - Rental 28,035.00 1,401.80
HD Pelican, Inc. Rent 1&5,917. 48 8,734.56

4r.i,u .
;< .J
 _I

[' ECTDI OI' I --

C.T. n . Ca se N ~. 3 7 17

- 1. 3 -

Exhibit Withhnld ing Aq~nt !..Y.I!! nf lncoll! Anunt Tax Withheld

H~ Ph i I. P '1 inu111 ~!h ee ls , Inc. Rent als p 10, 201.90 p 510. 09

HF Philips El ect r ical La ps,I nc. Rental 17', 75'1.32 8,737. 58
HG Ravecar, Inc. Leas e 102, 891.75 5, 1114.54
HI Redson Textile Mfg. Corp. Rent al 63,831. 28 3,191. 50
HJ Ruby Ind ustrial Corp. Re nta l 739, 302.85 36,965.10
HK Rhon e-Poulenc Phi l. Inc. Renta l 93,893.88 4,6'34.70
HL - do - Rentc> l 104, 085. 49 5, 204. 28
HM - do - Re nta l 104, 085. 48 5, 204.28
HN - do - Ren t al 104, 085. 48 5,204. 28
HO Leonardo T. Sanchez Ren tal 7,'350.1 5 3'37.50
HP - do - Rental 7,'350. 15 397.50
HQ - do - Rent al 7,950. 15 3'3 7.50
HR - do - Rental 7,950. 15 397.50
HS Sterli ng Product Int'l. Renta l 34, 71t3. 15 1,737. 00
HT - do - Rent al 42,553. 07 2,129. 00
HU - do - R!>nt a1 4'3 ,749.21 2, 1188.00
HV - do - Rental 55,662.85 2, 783.00
HW - do - R~ntal 55,662.85 2,783. 00
HX Standard Electr ic Mfg.Cor p. Renta l 565, 249.80 28, 262.64
HY Sulpicio Lines , Inc. Rental 1,, GB't, 0'35. 00 251,052.75
HZ Sweet Lin es, Inc. Renta l 15'3 ,310. 80 7, 955. 97
IA Transport Contractors, Inc. Rent al 21 ,384. 00 1, 05'3.20
IB - do - Rent al 29,512.00 1,425.60
IC .: do - Rental 29,5!1t.lt0 1, 425. 72
ID Un ion Car bide Phils. Inc. Rent al 23,1 27.00 1,156.35
IE - do - R2nta l 23,127.00 1,155. 35
IF - do - Renta l 23,127. 0') 1,156.35
IG - do - R ~nta l 14,439. 60 721.98
IH Univ. Phys ician's Serv. Inc. Ren t 35, 5~1 ~1. 00 1, 775.00
IJ - do - Re11t B5,'W!. OO 4,31 7. 20
IK - do - Rent 3Hi, 000. W' 15, 8Lt0. 00
IL - do - Rent 310,900. 00 15, 540.00
IM USV!Ph i l. l Phart. Corp. Cat' Rent al 42, '328. 68 2, 1116.44
IN - do - Car R~nta l 42,'328.68 2, 1lt6. 44
10 - do - Cat' Rent al 42,928.68 2, 1'5. 44
IP .USV !Phil . l Phar1. Corp. Car Rental 42, '328.68 2,1 46. 44
IQ Warn er Barnes Car Rental 1,1 37.10 56.85
IR - do - Rental 1,137.10 56. 85
IS - do - Car Rent al 1,137.10 55.85
IT - do - Car Re ntal 1,137.1<) 56.85
IU - do - Car Rental 1,137.10 56.95
IV - do - Car Rental 1,137.10 56.85
IW - do - Rent al 1,137. 10 55.85
IX - do - Rental 1, I37. 10 56.85
IY1 Warner-La .bert Phils. Inc. Cont ractor 15,1 88. 04 75g, 4o

4~ ,
A
 or::c :u.n oN . .
C.T.n. Ca s e No. 37 17

.. 11.1. ...

Exhibit Withholding Agent ~of Incou Atount Tax Withheld

JZ - do - Contradot p l B, '377. 16 p 948.86

JA - do - Contractor 12, 112.58 605.63
JB - do - Cont ractor 23, 48 ~1 . 27 1,174.01
JC - do - Cvntractor 12, '3 23. '0 61t6.17
JD - do - Cont r ~ctor 13,8'32.'35 66'3.65
JE - do - Contractor '16, 277.78 2,313.8'3
JF - do - Contractor 49,796.62 2,489.83
JG - do - Contractor 46,277.78 2,313.8'3
JH - do - Co t ractor 4'3, 7'36.62 2,489. 83
JI - do - Contractor 45,181.8'3 2,25'3.0'3
JK - do - Contractor 45, 181.8'3 2, 259.09
JL - do - Rental 48,52'3.35 2,426.47
JM - do - Rental 41,168.79 2,058.44
JN - do - Rental 47,56'3 . 1!~ 2,378.47
JO - do - Rental 45,60'3.93 2, 280.50
JP - do - Rental 30, 9'33.ft5 1,54'3.68
JQ - do - Rent al 40,635.06 2, 031.75
JR - do - Rental 30,'3'33.45 1,54'3.67
JS - do - Rental 39,088.91 1,954.45
JT - do - Le :e '8,52'3. 35 2,426.47
JU Warn~r-Lallber Phils. Inc. Lease 45, 181. 8'3 2,25'3.09
JV - do - Contract or '5, 181.8'3 2,25'3.09
JW - do - Contractor '8, : ~ 9. 35 2, 't ~6. 47
JX - do - Rent al 30, 9'33. '15 1' 5'1'3. 67
JY - do - Cont ractor '3, 7'36. 62 2,48'3.83
JZ - do - R ~ntal 4'3, 7%.62 2,48'3.83
KA - do - Rental 1,02'3,506.36 51,575.32
KB Wellcolle !Phils. l Inc. Car Rental 113, 0211, 34 5,651.21
KC - do - Cat Rent al 125,4 8.56 6,272.43
1\D - do - Car Rental 53,525.'12 2,676.27
KE - do - Car Rental 2'3 1, '398.42 14,5'39. 91
KF Winthrop Ste atns , Inc. Rent al 240, '3't3. 65 12,047.17
KG - do - Rental 230,1 06.25 11, 50( 73
KH - do - Rent t~l 160,8'35.82 8, 044.25 J
KI - do - Rental 115 1 4ZO. Bit 5, 770.00
KJ Yu Eng Kao Electrical Lease Rental 111, '31t3. 23 5,5'37.31
Supp 1y & Hard~Jare
KL Drilling Corp. of Asia Rental 31,950.00 1,598. 00
KM Neltex Dev. Co., Inc. Rental 51,750.00 2,587.50
KN RLM& Co. Rental 12,419.06 516. 60
KO Dia. ond Motor Corp. Contr ilr.t or 2,881.00 10.2&
KP Econo1i l ine Offic~ Eqpt Sales Lt>asing 2,709. 00 135.45
in L~ase Corp.
KQ Eften V. Garcia Car Rt> ntal 3'1,090.2'3 1, 704.02
~R: Int' 1. Eood Housekeeping, I~c . Rental 22,500.00 1,125. 00
KS Lafu111ar Marketing Corp. Appraisal fee 1,669.50 166.95

4r-;.; ~ ~
-- DECI~3IOI' I
C.T.A. ras~ No. 3717

-- l. r.) ..._

W
ithholding Agent Tax W
ithheld

KT P ~a g atic Dev . t Const.C~rp. RDntal p 2, 521. 00 p 126.05

KU Phil. Cocoa Corp. Rental 365,85~.52 181292. 61
KV Technolux Marketing Inc. R~nt I 51883.00 29~. 15
f'.l,l St at e Inveshent House , Inc. Re ntal 2,500. 00 125.00
KX PDCP Rental 24,830.00 11241.25
KY Quality So lid Industrial Corp. Rental 11'3 1Clit'J . 00 5, 952. 00
KZ Sta. Cl ara Estate, Inc. Rental 321946.00 1, 647. 2'
LA Lacson Her1anos Ag ~ o- I ndustr ial Rental 511 , 501. 4& 25, 575.05
Corp.
LB Menchaca Her1anos Lease 21!1594. 00 10,57'3.20
LC Nenaco Sale s Corp. Rental 36, 0811,40 1, BOlt. 22
LD Jon, Lopez &Co. CPA's Rental 7,200.00 360.00
LE Int egrated Stevedoring, Eqpt. Renta l 4101400. 00 20,520. 00
Arrastre Corp.
LF - do - Eqpt. R. :o;t al 681/100. 00 3, 420.00
LG Dinglasan L w Office R n al 8,400.00 1120.00
LH Perla Co~pania de Seguros, Inc. Insurance 14, 280. 75 714. 03
Colli issi ons
LJ - do - C o ~ i- io'ls 215,'314 . '37 1o,7'3:. 75
LJ - do - Co !!lissions E.0, 371. 45 3,018.57
LK - do - Co iss ions 601 371.45 31018.57
Li'l - do - Coll~issions /12,746. 10 2, 137.30
LN - do - Con issions 861835. 40 4134! . 77
LO - do - it14. 62
LP - do :.. 3, 327. 40 !66. 37
LQ Wor ld-Wide Ins. &Surety Co.Inc. 1, 468.04
LR - do - Co i5sion 13, 134. 711 656.71
LS - do - Co 'lliss ion 331332.66 1, 66'3.66
LT - do - ~l a g~( ~' cl 2, 16'3. 39 108. 1/
LU Mrs. Vola da n. Kilayco Al l ~ l13nce(sic l 2'3, 076. 00 1, it 53. so
LV Fortune Jn :;urance ~ Surety Co . Inc. W1. 13
LW Manila Banking Corp. Interest 67, '312. 00 101186.80
LX I1asco Rrrastre &Stevedoring Rental 5110, lt04 . 00 34,'386.30
Co. 1 Inc.
LV Gold City Jrtegrated Port Rental 1I 042 1 '3~17 , 03 521145. 35
Sel'vice 1 Inc.
LZ - do - Rental 6831736. 22 34,186.81
MA Bagonbon Faras, Inc. Lease-eqpt. 261,886. 23 13, 88'3 . 74
MB El en ita Rgri.Dev. Corp. Rent I 318, 67'3. 92 15,933. 96
MC Ho!e Fi nancing Corp. 2'3, 106. 00
MD Gl obal El ectrification Syste' 1 Rental %1244. 65 4,812. 26
Inc.
ME C. B.Lopez Mngt &Consultant Re nt 241300. 00 1, 215. 00
Engineering
MF Min . of Trade & IndJstl' y PP "t 819115. 00 447. 30
MG Sandvik Phils. Inc. Wages !sicl 2, 3lt2. it2 117. 12
MH Mandaue Warehousing Corp. Rent al 81736.00 436.80
 DE:C I~:; I f"l\' 1 --
C. T . n . Caq' rrn . ?717

- lE -

Exhibit Withholding Agent In!! of Inco1e A1ount ~.! Withheld

MI Nork is Int' 1. Co. Inc. R ~ ntal p 24,3311.36 p 1,219.20

MJ Norkis Trading Co., Inc. Rental 314,501.17 15,725. 09
W< First Phil.Insurance Co. Inc. C(.ll!l:!ission 107, 700. 7'3 5, 385.04
~L lilo-An Repair Shop, Inc. Rental 112,603. 00 5,630.15
M'l Gel ac Tradin g, Inc. R~nt 128,929.'33 6, lt-46. 46
MO INTERBANK Rent 110, 250.00 5,512.50
MP Phil. Index T ra d~l'S Rent lt 1 3':Jit, 00 219.70
MO Heroinigildo Trinidad Rent 60,248.80 3,012.44
MR Aveco Eqpt. Corp. Rental 11, %'3.75 598.49
MS - do - P.e11tal 11,953. 75 598.4'3
MT - do - Rental 11, '3 ':l.75 5'38.49
MU - do - Rent al 111%9. 75 538.49
MV - d~ - Rental 11, '35'3. 75 5'38.4'3
MW - ~0 - Rental 1119~'3 .75 5'38. 49
MX - do - Rental 111':JS':J, 75 5'38. 49
MY Mondr ~gon lnd ts . ries 1 lnr:. Rental 1I 1tG1, 958. 65 73, 0'37.'30
fi'I Z Cong r Chemit~l Corp. Rental 195, 127.40 '3 ,755.32
NA Phi 1. Rock P1 od uc s Inc. Eq pt . L~as e 507, !99. 57 25135'3. '38
NB - do - Eqpt. Lea~e 488,137.80 24, ft05. 89
NC Gerardo D. Cmanan 1 M.D. 120.44
QQ Hose Financ ing Corp. 8,316.00
flR - do - 41158.00
T 0 TAl 1, 596,151 .05

Th f? 1'] fJ l C' l'" n c1 .i. 1~ a b 1 e i.. n c o m(~ I~ <'.:1 >< P lil vd. \; h 11 e 1 d hy

pay tJt' r; f t' CJ m pet i t: i on f' 1- pe t- am c 1H i f> rJ "' n n u a 1

of which

the evidence offered.

Petiti oner has also failed to present any

c laimed amounti ng to P 2 , 113 , 6 27. 3 5 p~r amended 1981

For thi s reason , the Court

i. s 1 e ft with nc rec o ur s e but to h a r thn sa me .

 - DECI S ION -
C.T.A. Ca s e No. 3717

-- 17 -

Accordingly, we compute the r e sulting claim for

tax credit as follows:

TaKabl~ Inco.e p 51 684 1 438.00

Corporate Inco1e Tax
p 100,000 )( 251. p 25,000.00
p 5,584,438.00 X 351. 11 954,554.00
Total Tax Due p 1,979,554.00
L~ss : 1981 Withholding tax credits
per ~vidence offered 11 6%, 151.05

rom. A~U.trr M p 283,402.95

WHEREFORE, the Court denie s pet i tioner's claim

fot~ tax ct~ edit. The instant petition for r e view is

hereby di s missed for lack of merit.

SO ORDERED.

Quezon City, Mett~o Manila, Ma y 10, 1993.

GRUBA
.Judge

WE CONCUR:

ACOSTA

P.. ~
~"
An-,

/ RAMON D. DE
As sociate J~~=A .)

L
 -
- DECISION -
C.T.A. Case No. 3717

- 18 -

I hereby c ertify that this de ci s i o n was

reached af ter du e ca n s ul t~tion bet ween the members

of the Co urt of ax App ea ls in accordance with

Section 13 , Ar ti c l e VIII of the Constitution.

~Q-~
ERNESTO D. ACOSTA
Presidi ng Judge
Court of Tax Appeal s

43;_,