(5%)
ABC Corporation won a tax refund case for P50 Million.
Upon execution of the judgment and when trying to get the Tax Credit Certificates (TCC) representing the refund, the Bureau of Internal Revenue (BIR) refused to issue the TCC on the basis of the fact that the corporation is under audit by the BIR and it has a potential tax liability. Is there a valid justification for the BIR to withhold the issuance of the TCC?
Explain your answer briefly.
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1 comment:
XIII.
There is no valid justification for the BIR to withhold the issuance of the Tax Credit Certificates because such will render the judgment for tax refund meaningless. The refusal of BIR to issue the TCCs on the basis of the fact that the corporation has a potential tax liability is unreasonable since every taxpayer really has a potential tax liability. Such refusal unduly deprives the corporation of the use of its money, thereby violating due process.
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