Tax Case Digest: Commissioner of Internal Revenue vs Central Luzon Drug Corporation GR No 159647
Commissioner of Internal Revenue vs. Central Luzon Drug Corporation G.R. No. 159647 April 15, 2005 Facts: Respondents operated six drugstores under the business name Mercury Drug. From January to December 1996 respondent granted 20% sales discount to qualified senior citizens on their purchases of medicines pursuant to RA 7432 for a total of ₱ 904,769. On April 15, 1997, respondent filed its annual Income Tax Return for taxable year 1996 declaring therein net losses. On Jan. 16, 1998 respondent filed with petitioner a claim for tax refund/credit of ₱ 904,769.00 allegedly arising from the 20% sales discount. Unable to obtain affirmative response from petitioner, respondent elevated its claim to the Court of Tax Appeals. The court dismissed the same but upon reconsideration, the latter reversed its ear...