8/13/2019 CIR v Sony

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G.R. No. 178697

COMMISSIONER OF INTERNAL REVENUE, Petitioner,

- er!"! -

SON# P$ILIPPINES, INC., Re!%on&ent.

FACTS'

T(e CIR i!!"e& ) Letter o* A"t(orit+ )"t(oriin ert)in reen"e o**ier! to e/)0ine Son+! 2oo3! o*

)o"nt! )n& ot(er )o"ntin reor&! re)r&in reen"e t)/e! *or 4t(e %erio& 1997 )n& "neri*ie&

%rior +e)r!.5 A %rei0in)r+ )!!e!!0ent *or 1997 &e*iien+ t)/e! )n& %en)tie! )! i!!"e& 2+ t(e CIR(i( Son+ %rote!te&. T(ere)*ter, )tin on t(e %rote!t, t(e CIR i!!"e& *in) )!!e!!0ent notie!, t(e

*or0) etter o* &e0)n& )n& t(e &et)i! o* &i!re%)nie! itin ) &e*iien+ V)"e A&&e& T)/,

&e*iien+ E/%)n&e& it(o&in T)/, &e*ien+ o* VAT on ro+)t+ %)+0ent!, )te re0itt)ne o* Fin)

it(o&in T)/ )n& )te re0itt)ne o* ino0e %)+0ent! it( ) r)n& tot) o* P1,89,6:;.6.

Son+ !o"(t re-e)")tion o* t(e )*ore0entione& )!!e!!0ent 2+ *iin ) %rote!t. Son+ !"20itte&

ree)nt &o"0ent! in !"%%ort o* it! %rote!t on t(e 16t( o* t()t !)0e 0ont(, )n& it(in :< &)+! )*tert(e )%!e o* 18< &)+! *ro0 !"20i!!ion o* t(e !)i& !"%%ortin &o"0ent! to t(e CIR, Son+ *ie& )

%etition *or reie 2e*ore t(e CTA.

In !"0, t(e CTA-Fir!t =ii!ion %)rt+ r)nte& Son+! %etition 2+ )nein t(e &e*iien+ VAT

)!!e!!0ent 2"t "%(e& ) 0o&i*ie& &e*iien+ ET )!!e!!0ent )! e )! t(e %en)tie!. T("!, t(e

&i!%o!itie %ortion re)&!'

T(e CIR !o"(t ) reon!i&er)tion o* t(e )2oe &ei!ion.

T(e CTA-Fir!t =ii!ion &enie& t(e 0otion *or reon!i&er)tion. Un*)e&, t(e CIR *ie& ) %etition *orreie it( t(e CTA-E> r)i!in i&enti) i!!"e!.

Fin&in no oent re)!on to reer!e t(e &ei!ion o* t(e CTA-Fir!t =ii!ion, t(e CTA-E> &i!0i!!e&CIR! %etition. CIR! 0otion *or reon!i&er)tion )! &enie& 2+ t(e CTA-E>.

T(e CIR i! no 2e*ore t(i! Co"rt i) t(i! %etition *or reie re+in on t(e er+ !)0e ro"n&! it r)i!e&2e*ore t(e CTA-Fir!t =ii!ion )n& t(e CTA-E>. T(e !)i& ro"n&! )re re%ro&"e& 2eo'

$EL='

T(e CIR in!i!t! t()t LOA 197:?, )t(o"( it !t)te! 4t(e %erio& 1997 )n& "neri*ie& %rior +e)r!,5 !(o"&

2e "n&er!too& to 0e)n t(e *i!) +e)r en&in in M)r( :1, 1998. T(e Co"rt )nnot )ree.

>)!e& on Setion 1: o* t(e T)/ Co&e, ) Letter o* A"t(orit+ or LOA i! t(e )"t(orit+ ien to t(e

)%%ro%ri)te reen"e o**ier )!!ine& to %er*or0 )!!e!!0ent *"ntion!. It e0%oer! or en)2e! !)i&

reen"e o**ier to e/)0ine t(e 2oo3! o* )o"nt )n& ot(er )o"ntin reor&! o* ) t)/%)+er *or t(e%"r%o!e o* oetin t(e orret )0o"nt o* t)/.@1 T(e er+ %roi!ion o* t(e T)/ Co&e t()t t(e CIR

reie! on i! "neB"io) it( re)r& to it! %oer to r)nt )"t(orit+ to e/)0ine )n& )!!e!! ) t)/%)+er.

SEC. 6. Poer o* t(e Co00i!!ioner to M)3e A!!e!!0ent! )n& Pre!ri2e A&&ition) ReB"ire0ent! *or

T)/ A&0ini!tr)tion )n& En*ore0ent.

8/13/2019 CIR v Sony

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DAE/)0in)tion o* Ret"rn! )n& =eter0in)tion o* t)/ ="e. A*ter ) ret"rn ()! 2een *ie& )! reB"ire&

"n&er t(e %roi!ion! o* t(i! Co&e, t(e Co00i!!ioner or (i! &"+ )"t(orie& re%re!ent)tie 0)+

)"t(orie t(e e/)0in)tion o* )n+ t)/%)+er )n& t(e )!!e!!0ent o* t(e orret )0o"nt o* t)/' Proi&e&,

(oeer, T()t *)i"re to *ie ) ret"rn !() not %reent t(e Co00i!!ioner *ro0 )"t(oriin t(ee/)0in)tion o* )n+ t)/%)+er. / / / @E0%()!e! !"%%ie&

Ce)r+, t(ere 0"!t 2e ) r)nt o* )"t(orit+ 2e*ore )n+ reen"e o**ier )n on&"t )n e/)0in)tion or)!!e!!0ent. EB")+ i0%ort)nt i! t()t t(e reen"e o**ier !o )"t(orie& 0"!t not o 2e+on& t(e

)"t(orit+ ien. In t(e )2!ene o* !"( )n )"t(orit+, t(e )!!e!!0ent or e/)0in)tion i! ) n"it+.

A! e)rier !t)te&, LOA 197:? oere& 4t(e %erio& 1997 )n& "neri*ie& %rior +e)r!.5 For !)i& re)!on,

t(e CIR )tin t(ro"( it! reen"e o**ier! ent 2e+on& t(e !o%e o* t(eir )"t(orit+ 2e)"!e t(e

&e*iien+ VAT )!!e!!0ent t(e+ )rrie& )t )! 2)!e& on reor&! *ro0 )n")r+ to M)r( 1998 or "!in

t(e *i!) +e)r (i( en&e& in M)r( :1, 1998. A! %ointe& o"t 2+ t(e CTA-Fir!t =ii!ion in it! A%ri;8, ;.