Tuesday, April 24, 2007 Prejudicial revocation of a BIR ruling
A REVOCATION of a Bureau of Internal Revenue (BIR) ruling that will have a prejudicial effect on the taxpayer concerned shall not be given a retroactive effect.
(The Commissioner of Internal Revenue v. Burmeister and Wain Scandinavian Contractor Mindanao Inc., G.R. 153205, January 22, 2007)
Hence, if the BIR has previously ruled that a transaction undertaken by a taxpayer is subject to zero percent value-added tax and subsequently revokes the said ruling, the taxpayer’s request for refund of input taxes arising from the zero-rated transactions on the basis of the first ruling cannot be denied, notwithstanding that the revocation was made on valid legal grounds. (Source: Punongbayan & Araullo)
THE title of the Labor Case Digest article last April 21 should have read “60-day period in certiorari” not 90 days as published. We apologize for the error.
