Robinson's Commercial Complex, Inc. v. Court of Tax Appeals

TWELFTH DIVISION [CA-G.R. SP No. 30772. June 10, 1993.] (C.T.A. Case No. 4198) ROBINSON'S COMMERCIAL COMPLEX, INC. , petitioner , vs . HON. COURT OF TAX APPEALS AND COMMISSIONER OF THE BUREAU OF INTERNAL REVENUE , respondents . R E S O L U T I O N PARDO , J p : The Court resolves to dismiss the petition for review of the decision of the Court of Tax Appeals in CTA Case No. 4198, that denied petitioner's claims for tax credits of the amounts of P50,000.00 and P45,950.00, representing graduated annual fixed taxes of its Ermita, Manila, and Alabang, Muntinlupa, Metro Manila, department stores alleged to have been erroneously paid to the Commissioner of Internal Revenue. Upon consideration of the petition, we find no error of fact or law sufficient to warrant reversal or modification of the decision sought to be reviewed. By letters both dated July 16, 1986, (but filed only on July 21, 1986) petitioner requested the Commissioner of Internal Revenue for tax credits equivalent to the amounts overpaid on the graduated annual fixed taxes of its retail general merchandising operations in Manila amounting to P50,000.00 and for its retail and general merchandising operations in Alabang, Muntinlupa, Metro Manila, amounting to P45,950.00, claiming that it was subject only to a fixed tax of P200.00, not to the graduated annual fixed taxes. Without any action taken by respondent on petitioner's claims, on October 30, 1987, petitioner commenced a petition for review with the Court of Tax Appeals. In its decision dated March 22, 1993, the Court of Tax Appeals denied petitioner's claims for tax credits. The Tax Court ruled that petitioner operated under a fiscal year starting on October 1 of a given year and ending on September 30 of the following year. On October 30, 1985, petitioner paid a fixed tax of P200.00 and a percentage tax of 1.5% on subsequent sales corresponding to the gross annual sales covering the fiscal year ending September 30, 1985. Petitioner's tax returns show that the gross annual sales of the petitioner cover the period from March 20 to September 30, 1985. It made its tax payments on October 30, 1985. On November 1, 1985, the President issued P.D. 1991, later amended by P.D. 2006, issued on January 1, 1986, changing the provisions of the Tax Code on graduated annual fixed taxes imposed on corporations engaged in retail merchandising, reducing the rate from 3% to 1 1/2% of the gross monthly sales. We agree with the Tax Court that the amendatory laws cannot be given retroactive effect in the absence of an express provision declaring that the laws shall apply retroactively. The law in effect at the time petitioner paid the graduated annual fixed taxes was Sec. 161(2) of the National Internal Revenue Code and the period covered was from March to September 30, 1985. The amendatory laws were effective November 1, 1985 and January 1, 1986. WHEREFORE, the Court DISMISSES the petition for review of the decision of the Court of Tax Appeals in CTA Case No. 4198. No costs in this instance. SO ORDERED. Francisco and Martin Jr ., JJ ., concur.