BIR Ruling [DA-145-96]

April 11, 1996 BIR RULING [DA-145-96] Sycip Gorres Velayo & Co. Insular Life Building Gorordo Ave. cor. Gen Maxilom Ave. Cebu City Attention: Atty. Vincent E. Tomaneno Gentlemen : This refers to your letter dated November 27, 1995 requesting in behalf of your client, Rikio Southeast Asia, Inc. for conversion of Tax Credit Certificate (TCC) SN No. 000066 into cash refund based on a reconstructed docket. It is represented that on November 16, 1990, the Bureau of Internal Revenue issued to your client, the said TCC in the amount of P1,540,805.15 based on its approved claim for tax credit/refund of excess value-added tax inputs paid for the period January 1988 to December 1988 pursuant to Section 106 (a) of the Tax Code, as amended; that to date, the said TCC has an unutilized amount of P1,415,117.15; that on June 16, 1994, you filed a request for conversion of the said TCC with the Appellate Division on the ground that it has not foreseen any forthcoming tax liability which may be the object of the application or utilization of the subject TCC and therefore, it is put in a situation where it has in its possession a valuable TCC which is devoid of use; that the said TCC cannot also be assigned nor conveyed to other persons pursuant to BIR Ruling No. 214-91 dated October 22, 1991; that to date, the application is still pending with the Bureau for the reason that the docket of its claim for tax credit/refund which is necessary for the processing of the conversion of the TCC cannot be found; that diligent efforts, both from the Records Division of the Bureau and your own has been exerted to locate the said docket but the same proved futile. cSDIHT In reply, please be informed that inasmuch as Tax Credit Certificate No. SN 000066 dated November 16, 1990 was duly approved by then Commissioner Jose U. Ong in your client's favor and the loss of the said docket is not attributable to you and your client's negligence, your request that processing of your client's application for conversion of tax credit certificate into cash refund based on a reconstructed docket is hereby granted. Accordingly, you should submit to the Appellate Division the original copy of TCC No. SN 000066 and other pertinent documents so that your client's request for refund of the unutilized balance in the said TCC in the amount of P1,415,117.15 may be processed. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue