Andrea Vda de Aguinaldo v.
CIR (13 SCRA 269)
Facts:
Leopoldo Aguinaldo and his wife failed to declare cash dividends receinved in 1952 in their joint
income tax return for the same year but only declared it on 1953.
One year after, agents of the Bureau of Internal Revenue re-examined the 1952 and 1953 and
discovered the same. Whereupon, they readjusted the returns, increasing the declared income
for 1952 by P10,000.00 and eliminating from the 1953 income tax return the reported dividends
of P5,000.00. The result was a deficiency income tax of P3,840.00 for 1952 and an
overpayment of tax in the amount of P1,600.00 for 1953.
The Collector of Internal Revenue by his letter dated October 28, 1957, assessed against
Leopoldo R. Aguinaldo the amount of P3,840.00 as deficiency income tax for 1952, without
crediting in his favor the overpayment in 1953.
Aguinaldo’s counsel in a letter dated January 10, 1958, protested against the assessment, and
requested that the overpayment for 1953 be credited in favor of the taxpayer. The request was
denied and the taxpayer asked for reconsideration. Finally, the Commissioner of Internal
Revenue informed him that the amount of P1,600.00 cannot be credited against the tax for 1952
inasmuch as the claim for tax credit was filed beyond the two-year period provided for in Section
309 of the National Internal Revenue Code.
In the CTA, Petitioner contends that Section 309 does not require the filing of a claim within two
years from the payment of the tax before tax credit could be given.
On the other hand, respondent Commissioner maintains that the authority of the Commissioner
of Internal Revenue under Section 309 can only be exercised if a claim for credit is made in
writing and filed with him within two years from the payment of the tax.
Issue:
Whether or not the claim for tax refund/credit for the year 1953 has already prescribed.
Ruling:
Yes, The authority of the Collector of Internal Revenue to credit or refund taxes or penalties can
only be exercised if the claim for credit or refund is made in writing and filed with him with two
years after the payment of the tax or penalty. Clearly, refund/credit requires the filing by the
taxpayer of a written claim for credit or refund within two years after payment of the tax, before
the Commissioner of Internal Revenue can exercise his authority to grant the credit or refund.
Such requirement is therefore a condition precedent and non-compliance therewith precludes
the Commissioner of Internal Revenue from exercising the authority thereunder given.
As noted, the Aguinaldos paid the income tax for 1953 on August 14, 1954 although the
adjustment took place on August 29, 1955. From both dates to January 13, 1958, when the
claim for tax credit was filed, more than two years have elapsed. Evidently, petitioner’s claim for
tax credit was filed beyond the period stated in Section 309.
Andrea Vda de Aguinaldo v. CIR (13 SCRA 269)
Facts:
1. Leopoldo Aguinaldo and his wife failed to declare cash dividends receinved in
1952 in their joint income tax return for the same year but only declared it on 1953.
2. One year after, agents of the Bureau of Internal Revenue re-examined the 1952
and 1953 and discovered the same. Whereupon, they readjusted the returns,
increasing the declared income for 1952 by P10,000.00 and eliminating from the
1953 income tax return the reported dividends of P5,000.00. The result was a
deficiency income tax of P3,840.00 for 1952 and an overpayment of tax in the
amount of P1,600.00 for 1953.
3. The Collector of Internal Revenue by his letter dated October 28, 1957, assessed
against Leopoldo R. Aguinaldo the amount of P3,840.00 as deficiency income tax
for 1952, without crediting in his favor the overpayment in 1953.
Aguinaldo’s counsel in a letter dated January 10, 1958, protested against the
assessment, and requested that the overpayment for 1953 be credited in favor of the
taxpayer. The request was denied and the taxpayer asked for reconsideration. Finally, the
Commissioner of Internal Revenue informed him that the amount of P1,600.00 cannot be
credited against the tax for 1952 inasmuch as the claim for tax credit was filed beyond
the two-year period provided for in Section 309 of the National Internal Revenue Code.
In the CTA, Petitioner contends that Section 309 does not require the filing of a claim
within two years from the payment of the tax before tax credit could be given.
On the other hand, respondent Commissioner maintains that the authority of the
Commissioner of Internal Revenue under Section 309 can only be exercised if a claim for
credit is made in writing and filed with him within two years from the payment of the tax.
Issue:
Whether or not the claim for tax refund/credit for the year 1953 has already prescribed.
Ruling:
Yes, The authority of the Collector of Internal Revenue to credit or refund taxes or penalties can
only be exercised if the claim for credit or refund is made in writing and filed with him with two
years after the payment of the tax or penalty. Clearly, refund/credit requires the filing by the
taxpayer of a written claim for credit or refund within two years after payment of the tax, before
the Commissioner of Internal Revenue can exercise his authority to grant the credit or refund.
Such requirement is therefore a condition precedent and non-compliance therewith precludes
the Commissioner of Internal Revenue from exercising the authority thereunder given.
As noted, the Aguinaldos paid the income tax for 1953 on August 14, 1954 although the
adjustment took place on August 29, 1955. From both dates to January 13, 1958, when
the claim for tax credit was filed, more than two years have elapsed. Evidently,
petitioner’s claim for tax credit was filed beyond the period stated in Section 309.
