Under Section 76 of the 1997 National Internal Revenue Code (NIRC), once an option to carry-over excess income tax payments to the succeeding years, it becomes irrevocable. This was what the Supreme Court reiterated in its new decision in the case of Belle Corporation vs. Commissioner of Internal Revenue, G.R. No. 181298 promulgated last January 10, 2011.
The issue passed upon by the Court is whether petitioner is entitled to a refund of its excess income tax payments for the taxable year 1997 in the amount of P106,447,318.00.
In denying petitioner Belle Corp.’s Petition for Certiorari under Rule 45 of the Rules of Court, the highest tribunal of the land opined that since petitioner already carried over its 1997 excess income tax payments to the succeeding taxable year 1998, it may no longer file a claim for refund of unutilized tax credits for taxable year 1997.
The Court explained that “Under the new law, in case of overpayment of income taxes, the remedies are still the same; and the availment of one remedy still precludes the other. But unlike Section 69 of the old NIRC, the carry-over of excess income tax payments is no longer limited to the succeeding taxable year. Unutilized excess income tax payments may now be carried over to the succeeding taxable years until fully utilized. In addition, the option to carry-over excess income tax payments is now irrevocable. Hence, unutilized excess income tax payments may no longer be refunded.”
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The issue passed upon by the Court is whether petitioner is entitled to a refund of its excess income tax payments for the taxable year 1997 in the amount of P106,447,318.00.
In denying petitioner Belle Corp.’s Petition for Certiorari under Rule 45 of the Rules of Court, the highest tribunal of the land opined that since petitioner already carried over its 1997 excess income tax payments to the succeeding taxable year 1998, it may no longer file a claim for refund of unutilized tax credits for taxable year 1997.
The Court explained that “Under the new law, in case of overpayment of income taxes, the remedies are still the same; and the availment of one remedy still precludes the other. But unlike Section 69 of the old NIRC, the carry-over of excess income tax payments is no longer limited to the succeeding taxable year. Unutilized excess income tax payments may now be carried over to the succeeding taxable years until fully utilized. In addition, the option to carry-over excess income tax payments is now irrevocable. Hence, unutilized excess income tax payments may no longer be refunded.”
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