Case Digest: Parcero v. Primetown Property Group Inc.

COMMISSIONER OF INTERNAL REVENUE and ARTURO V. PARCERO, petitioners,vs. PRIMETOWN PROPERTY GROUP INC., respondent.
G.R. No. 162155.          August 28,2007.

Facts:

On March 11, 1999, Gilbert Yap, the Vice President of Primetown (respondent), applied for refund of the income tax which they have paid on 1997. According to Yap, the company accrued losses amounting to P/ 71,879,228. These losses enabled them to be exempt from paying income tax, which respondent paid diligently. Respondent was therefore claiming a refund. Respondents submitted requirements but the petitioners ignored their claim. On April 14, 2000, respondents filed a review in the Court of Tax Appeals. The said Court, however, denied the petition stating that the petition was filed beyond the 2-year prescriptive period for filing judicial claim for tax refund.

According to Sec 229 of the National Internal Revenue Code, “no suit or proceedings shall be filed after the expiration of 2-yearsfrom the date of the payment of the tax regardless of any supervening cause that may arise after payment. Respondents paid the last income tax return on April 14, 1998. Article 13 of the New Civil Code states that a year is considered 365 days; months 30 days; days 24-hours; and night from sunset to sunrise. Therefore, according to CTA, the date of filing a petition fell on the 731st day, which is beyond the prescriptive period.

Issues:

Whether the two-year/730-day prescriptive period ends on April 13, 2000 or April 14, 2000 considering that the last payment of tax was on April 14, 1998 and that year 2000 was a leap year.

Whether or not Article 13 of the New Civil Code be repealed by EO 292 Sec 31 Chap 8 Book 1 of the Administrative Code of 1987.

Ruling:

The Court ruled that when a subsequent law impliedly repeals a prior law, the new law shall apply. In the case at bar, Art 13 of the New Civil Code, which states that a year shall compose 365 days, shall be repealed by EO 292 Sec 31 of the Administrative Code of 1987, which states that a year shall be composed of 12 months regardless of the number of days in a month. Therefore, the two-year prescriptive period ends on April 14, 2000. Respondents filed petition on April 14, 2000 (which is the last day prescribed to file a petition.