Refund queries

E-MAIL query on June 9, 2011:

Good evening Atty. Nonato. I was reading Cebu Daily News the other day and I came across your column, about the Bureau of Internal Revenue (BIR). I understand that this is your area of specialty and I was wondering if you can assist me with my concern.

I would like to know how long would it usually take for tax refunds to be released. I filed last year and I was supposed to be refunded the amount of PHP XXXX. For this year, I also have a refund for the same amount. If it really takes a while to receive the amount, can you suggest ways to hasten the release?

Author’s reply:

Section 204(C) of the Tax Code states:

“SEC. 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. — The Commissioner may

(C) Credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction. No credit or refund of taxes or penalties shall be allowed unless the taxpayer files in writing with the Commissioner a claim for credit or refund within two (2) years after the payment of the tax or penalty: Provided, however, that a return filed showing an overpayment shall be considered as a written claim for credit or refund.”

In reality however, it would normally take a long time to process a refund. The BIR might not even act on it. Moreover, by filing a refund, you may open yourself to a BIR audit where the assessment may even be more than the amount claimed to be refunded. You may however make consistent follow-ups to ensure the immediate processing of your claim and to ensure that your case docket will not be lost.

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You may contact the author at [email protected].