Accenture Inc vs CIR
G.R. No. 190102
Accenture, Inc., Petitioner
Vs.
Commissioner of Internal Revenue, Respondent
Doctrine
Statutory Construction; The interpretation of a law by the Supreme Court constitutes part of that law from the date it was originally passed since this Court’s construction merely establishes the contemporaneous legislative intent that the interpreted law carried into effect. Accenture, Inc. vs. Commissioner of Internal Revenue, 676 SCRA 325, G.R. No. 190102 July 11, 2012.
Facts:
Accenture, Inc. (Accenture) is a corporation engaged in the business of providing management consulting, business strategies development, and selling and/or licensing of software. On July 1, 2004, Accenture filled with the Department of Finance an administrative claim for refund or the issuance of a Tax Credit Certificate. Nonetheless, the Department of Finance did not act on the said claim but filed a Petition for Review with the First Division of the Court of Tax of Appeals on August 31, 2004, praying for the issuance of a TCC in its favor in the amount of P35,178,844.21.
With this, the commissioner of Internal Revenue (CIR) argued that:
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The sale by Accenture of goods and services to its clients are not zero-rated transactions.
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Claims for refund are construed strictly against the claimant, and Accenture has failed to prove that it is entitled to a refund because its claim has not been fully substantiated or documented.
On November 2008, the Division denied the petition of Accenture for failing to prove that the Accenture sale of services to the alleged foreign clients is qualified for zero percent VAT.
Issue:
Whether or not the Accenture was entitled to a refund or an issuance of a TCC in the amount of P35,178,844.21.
Ruling:
No. The Division ruled that Accenture had failed to present evidence to prove that the foreign clients to which the former rendered services did business outside the Philippines. The recipient of services must be doing business outside the Philippines for the transactions to qualify as zero-rated.
(b) Transactions subject to zero-rate.—The following services performed in the Philippines by VAT-registered persons shall be subject to 0%:
(1) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP).
(2) Services other than those mentioned in the preceding sub-paragraph, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP).” Accenture, Inc. vs. Commissioner of Internal Revenue, 676 SCRA 325, G.R. No. 190102 July 11, 2012.
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