36 Philex Mining vs CIR_SABATER.docx - CASE TITLE Philex...

This preview shows page 1 - 2 out of 2 pages.

CASE TITLE Philex Mining v. CIR, GR No. L-125704, 28 Aug. 1998 MEMBER Rhod Jeran Sabater DOCTRINE A taxpayer may not offset taxes due from the claims that he may have against the government. Taxes cannot be the subject of compensation because the government and taxpayer are not mutually creditors and debtors of each other and a claim for taxes is not such a debt, demand, contract or judgment as is allowed to be set-off. FACTS The BIR sent a letter to Philex asking it to settle its excise tax liabilities for the 2 nd quarter of 1991 to the 2nd quarter of 1992 in the total amount of P123,821.982.52. In a letter dated August 20, 1992, Philex protested the demand for payment of the tax liabilities stating that it has pending claims for VAT input credit/refund for the taxes it paid for the years 1989 to 1991 in the amount of P119,977,037.02 plus interest. Therefore these claims for tax credit/refund should be applied against the tax liabilities. In reply, the BIR, in a letter dated September 7, 1992, found no merit in Philex's position. Since these pending claims have not yet been established or determined

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture