BIR Ruling

October 18, 1973 1st Indorsement Returned to the Chief, Withholding Tax Division, the within papers bearing on the internal revenue tax cases of Mr. Leopoldo Brias and Mrs. Ofelia Brias, c/o Enrique J. Brias, Central Azucarera Don Pedro, Nasumbu, Batangas for the year 1967. cdta The records of this case disclosed that Mr. Leopoldo Brias and Mrs. Ofelia Brias are non-resident aliens; that they were stockholders of the San Miguel Corporation, a domestic corporation, during the year 1967; that 20% withholding tax was deducted from the dividends paid to them; that said withholding taxes amounted to P566.04 and P2,741.73 respectively; that upon audit of their returns there appeared an overpayment of P566.04 and P1,695.50 respectively as withholding tax; and that although no formal claim for refund has been duly filed by them, it is however stated in their income tax returns that said overpaid withholding taxes are refundable. The reasons behind the provisions of Section 309 of the Tax Code requiring a taxpayer to file a claim for behind within the statutory period of two years counted from the date of payment are first, to afford the Commissioner on opportunity to correct the action of subordinate officers; and second, to notify the Government that such taxes have been questions; and the notice should then be borne in mind in estimating the revenue available for expenditures. (Bermejo vs. Collector, G.R. No. L-3029, July 25, 1950; Mrs. Peco vs. Posadas, 64 Phil. 640) In the instant case, the income tax returns already state the fact that overpaid withholding taxes are refundable. Accordingly, the foregoing reasons behind the requirement of filing a claim for refund were already met. Besides, in the refund of excessive income tax withheld under Supplement A to Title II of the Tax Code which is similar to the instant case, the taxpayer claiming such refund in his income tax return is not required to file a claim for refund under Section 309 of the Tax Code. In view thereof, the within claim for refund of overpaid withholding taxes may be given due course without requiring the filing of a formal claim for refund within the two year period under Section 309 of the Tax Code. acd (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."