pPyaa\ UNITED INTERNATIONAL PICTURES AB v. COMMISSIONER OF INTERNAL REVENUE GR. No. 168331, 11 October 2012, THIRD DIVISION (Peralta, J.) Once the option to carry-over and apply the excess quarterly income tax: against income due for the taxable quarters of the succeeding taxable years has been made, such option shall be cansidered irrevocable for that lacableperiad and no application for cash refed or issuance of «a tax credit certificate shall be allowed thergore United International Pictures (UIP) AB filed with the Bureau of Internal Revenue (BIR) its Corporation Annual Income Tax Return for the calendar year ended. UIP paid a total of Php 12,811,960.00 as tax for the year 1998. UIP is claiming a refund of Php 9,309,292.00 which is che tax overpayment from deducting the prior year’s excess credit and the creditable withholding tax from the tax due for the succeeding taxable year ‘An administrative claim for refund was filed by UIP with the BIR for the 1999 overpayment. BIR denied such refund for the reason that since UIP carried over the 1998 tax overpayment as tax credit to the succeeding taxable year, the same cannot be refunded pursuant to Section 76 of the National Internal Revenue Code (NIRO) of 1997. UIP, then, filed a petition for review before the Court of ‘Tax Appeals (CTA), which ordered the refund or issue of a tax credit certificate. ‘The Court of Appeals (CA), on the other hand, reversed the decision of the CTA. ISSUE: Is UIP perpetually barred to refund its tax overpayment for taxable year 1998 since ir opted to carry-over its excess tax? HELD: Yes, Section 76 of the National Internal Revenue Code (NIRC) of 1997 provides that “xxx Once the option to carry-over ard apply the excess quarterly income tax against income due for the taxable quarters of the succeeding taxablesis RECENT JURISPRUDENCE years has been made, such option shall be considered irrevocable for that taxable period and no application for cash refund or issuance of a tax credit certificate shall be allowed therefore.” The phrase “for that taxable period” was properly explained by the Court to merely identify the excess income tax, subject of the option, by referring to the taxable period when it was acquired by the taxpayer and not as a prescriptive period for the irrevocability rue. ‘The UIP’ claim for refund for 1998 should be denied as its option to carry over has precluded it from claiming the refund of the excess 1998 income tax payment.