Bonifacio Water Corporation Corporation v CIR G.R. No. 175142, July 22, 201 !"C#$% This is a Petition Petition for Review Review on Certiorari, which seeks to review the decision of the CTA En Banc. Petit etitio ione nerr is a dome domest stic ic corp corpor orat atio ion n enga engage ged d in the the coll collec ecti tion on,, purication and distriution of water, which dul! led its "AT returns for periods# $th %uarter &''' and & st, ( nd and )rd %uarters (***. +or the said period, it alleges that its input "AT included, among others, input "AT on purcha purchases ses of capita capitall goods goods amount amounting ing to P-,$ P-,$(, (,&$ &$..-.. These pertain to pa!ments to contactors in connection with the construction of its Plant. /n 0anuar! ((, (*&(, petitioner led with the B1R an administrative claim for refund or issuance of ta2 credit certicate in the amount of P-,$(,&$.- representing the unutili3ed input ta2 on purchases of capital goods. The ne2t da!, petitioner led its Petition for Review with the CTA to toll the running of the two4!ear prescriptive prescriptive period. CTA 5econd 6ivision partiall! granted the claim for refund and reduced the amount to onl! P$*,7-,(*.$ for the reason that some of its purcha purchases ses,, such such as rental, ental, manage manageme ment nt fees fees and direct direct overh overhead ead cannot e considered as capital goods and some o8cial receipts under the the name "Bonifacio GDE Water Corporation" were Corporation" were disallowed on the ground that the use of said usiness name ! petitioner was never approved ! the 5ecurities and E2change Commission 95EC:. Petitioner and Respond espondent ent led led their their respe respecti ctive ve ;otion ;otions s for Reconsi econsider derati ation on 9;R:.
I$$&'$% 9&: 9&: Are Are the the o8ci o8cial al recei eceipt pts s unde underr the the name name "Bonifacio "Bonifacio GDE Water Corp Corpor orat atio ion" n" allowe allowed d as eviden evidence ce to suppor supportt petiti petitione oner=s r=s claim claim for refund>
9(: Are pa!ments for rentals, management fees and direct overhead considered capital goods>
(')*% 9&: ?o. /8cial receipts under the name "Bonifacio GDE Water Corporation", eing unauthori3ed and without approval from 5EC, are not allowed as evidence to support petitioner=s claim for refund of input ta2es. The re%uisite that the receipt e issued showing the name, usiness st!le, if an!, and address of the purchaser, customer or client is precise so that when the ooks of accounts are su@ected to a ta2 audit e2amination, all entries therein could e shown as ade%uatel! supported and proven as legitimate usiness transactions. The asence of o8cial receipts issued in the ta2pa!er=s name is tantamount to non4compliance with the sustantiation re%uirements provided ! law. Thus, the change of petitioner=s name to "Bonifacio GDE Water Corporation," eing unauthori3ed and without approval of the 5EC and the issuance of o8cial receipts under that name which were presented to support petitioner=s claim for ta2 refund, cannot e used to allow the grant of ta2 refund or issuance of a ta2 credit certicate in petitioner=s favor. 9(: ?o. Pa!ments for rentals, management fees and direct overhead are not considered capital goods. "Capital goods or properties+ refer to goods or properties with estimated useful life greater than one !ear and which are treated as depreciale assets under 5ection ('9f:, used directl! or indirectl! in the production or sale of ta2ale goods or services. These e2penses were correspondingl! charged to "PreOperating Expense," "Accrued Expense," "Direct Overhead," "Prepaid Insurance," and "Construction in Progress .
