Aegis PeopleSupport, Inc. v. Commissioner of Internal Revenue

EN BANC [C.T.A. EB CASE NO. 1231. September 9, 2016.] (C.T.A. Case No. 8267) AEGIS PEOPLESUPPORT, INC. [FORMERLY PEOPLESUPPORT (PHILIPPINES), INC.] , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . RESOLUTION FABON-VICTORINO , J p : Before the Court En Banc is the Motion for Reconsideration (Re: Decision dated May 17, 2016) 1 filed by petitioner Aegis PeopleSupport, Inc. [Formerly PeopleSupport (Philippines), Inc.] on June 10, 2016, assailing the Decision 2 promulgated on May 17, 2016, the dispositive portion of which reads: " WHEREFORE , the Petition for Review filed by petitioner Aegis PeopleSupport, Inc. [formerly PeopleSupport (Philippines), Inc.] on October 24, 2014 is hereby DENIED , for lack of merit. SO ORDERED. " The assailed Decision effectively sustained the ruling of the Court in Division denying petitioner's claim for refund of alleged excess payment of corporate income tax for calendar year 2008 amounting to Php38,087,854.48. Petitioner's motion is anchored on the following grounds: 1. The incentives granted to Philippine Economic Zone Authority (PEZA) registered entities extends to activities that are necessarily related to the registered activities of these entities; 2. Petitioner established that its foreign exchange (forex) gains were derived from the conversion of United States (US) dollars to Philippine Pesos in order to defray expenses incurred in connection with its PEZA-registered activity; hence, these forex gains should be covered by petitioner's income tax holiday (ITH) privilege; and 3. Petitioner's right to due process will be violated if its forex gains will not be covered by ITH incentive. By way of Comment , 3 respondent counters that petitioner's motion should be denied saying that: (1) the realized forex gains are not covered by the ITH, hence, subject to corporate income tax; (2) petitioner failed to prove that the forex gains arose from the conduct of its registered activities; and (3) tax refunds are strictly construed against the taxpayer. After a thorough study of petitioner's Motion for Reconsideration , the Court finds that all the basic issues raised in the motion have been addressed and passed upon, first by the Court in Division and subsequently on appeal by the Court En Banc . There are no substantial arguments raised to warrant the reversal of the assailed Decision of May 17, 2016. Petitioner merely reiterated if not rephrased those contained in its previously filed pleadings. WHEREFORE , the Motion for Reconsideration filed by petitioner Aegis PeopleSupport, Inc. [Formerly PeopleSupport (Philippines), Inc.] is hereby DENIED , for lack of merit. CAIHTE SO ORDERED. (SGD.) ESPERANZA R. FABON-VICTORINO Associate Justice Juanito C. Castaeda, Jr., Lovell R. Bautista, Erlinda P. Uy, Caesar A. Casanova, Cielito N. Mindaro-Grulla, Amelia R. Cotangco-Manalastas and Ma. Belen M. Ringpis-Liban, JJ. , concur. Roman G. del Rosario, P.J. , is on Official Business. Footnotes 1. En Banc docket, pp. 179-195. 2. En Banc docket, pp. 162-175. 3. En Banc docket, pp. 206-212.