REVENUE MEMORANDUM CIRCULAR NO. 50-2002, OCTOBER 2, 2002, October 02, 2002
MULTIPLE CLAIMS OF INPUT TAX CREDIT ATTRIBUTABLE TO ZERO-RATED SALES
It has come to the attention of
this Office that there are certain taxpayers who file multiple claims
for credit of input tax attributable to zero-rated sales for a
particular taxable period as in the case of one who (a) files a claim
for Tax Credit Certificate (TCC) pursuant to Article 39(k) of Executive
Order No. 226, otherwise known as the Omnibus Investments Code of 1987,
(b) files a claim for TCC with the One-Stop-Shop Inter-Agency Tax Credit
and Duty Drawback Center of the Department of Finance pursuant to
Administrative Order No. 266, (c) files a claim for TCC or refund with
the Bureau of Internal Revenue pursuant to Section 112 (A) of the Tax
Code, and (d) applies the same amount against the output tax liability
in the value added tax returns under Section 110 of the same Code. The
VAT taxpayer is allowed to take only one of the above options, thus, a
combination, or all, of the above actions is a violation of the Tax
Code. More so, it deprives the government of much needed revenues.
Section 110 (C) of the Tax Code
provides that “The sum of the excess input tax carried over from the
preceding month or quarter and the input tax creditable to a
VAT-registered person during the taxable month or quarter shall be reduced by the amount of claim for refund or tax credit for value added tax and other adjustments, such as purchase returns or allowances and input tax attributable to exempt sale. The
claim for tax credit referred to in the foregoing paragraph shall
include not only those filed with the Bureau of Internal Revenue but
also those filed with other government agencies, such as the Board of
Investments and the Bureau of Customs.” (emphasis supplied)
Accordingly, any taxpayer found to
have made a double or multiple claims for tax credit under the
aforementioned circumstances shall be subjected to civil and/or criminal
actions as provided for under Sections 228, 248, 249 and 254 of the Tax
Code.
All internal revenue officials and employees are enjoined to give this circular as wide a publicity as possible.
Adopted: 2 Oct. 2002
(SGD.) GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue