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Power Sector Assets and Liabilities Management Corporation Commissioner of Internal Revenue

The Supreme Court ruled that the Department of Justice (DOJ) has jurisdiction over a dispute between the Power Sector Assets and Liabilities Management Corporation (PSALM) and the Bureau of Internal Revenue (BIR) regarding the imposition of value-added tax on the sale of two power plants. While the BIR normally has jurisdiction over tax disputes, PD 242 states that disputes solely between government entities will be settled by the DOJ, Solicitor General, or Government Corporate Counsel. As this was a dispute between two government corporations (PSALM and NPC) and a government bureau (BIR), jurisdiction fell to the DOJ rather than the Court of Tax Appeals.

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74 views12 pages

Power Sector Assets and Liabilities Management Corporation Commissioner of Internal Revenue

The Supreme Court ruled that the Department of Justice (DOJ) has jurisdiction over a dispute between the Power Sector Assets and Liabilities Management Corporation (PSALM) and the Bureau of Internal Revenue (BIR) regarding the imposition of value-added tax on the sale of two power plants. While the BIR normally has jurisdiction over tax disputes, PD 242 states that disputes solely between government entities will be settled by the DOJ, Solicitor General, or Government Corporate Counsel. As this was a dispute between two government corporations (PSALM and NPC) and a government bureau (BIR), jurisdiction fell to the DOJ rather than the Court of Tax Appeals.

Uploaded by

Hermay Banario
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Power Sector Assets And

Liabilities Management
Corporation V.
Commissioner Of Internal
Revenue
G.R. NO. 198146
AUGUST 8, 2017
TOPIC:
 JURISDICTION over the
case involving
government-owned and
controlled corporations
and a government bureau
FACTS: GISTS

 PSALM conducted public biddings for the


sale of Pantabangan-Masiway Plant and
Magat Plant.
 NPC received a letter from BIR demanding
immediate payment of its deficiency
value-added tax (imposed upon the sale of the
Pantabangan-Masiway Plant and Magat Plant).
 NPC indorsed such demand letter to
PSALM
FACTS:

 BIR, NPC, and PSALM executed a


MOA

 In lieu of the MOA, PSALM paid the


deficiency VAT under protest
FACTS:

Dep. Of Justice

 PSALM filed a petition with DOJ for


the adjudication of the dispute with
the BIR to resolve the issue WON the
sale of power plants should be
subject to VAT
FACTS:

Dep. Of Justice: RULING


 In favor of PSALM
dispositionof Pantabangan-
Masiway and Magat Power Plants
was effected by the mandate of
the EPIRA; hence, not subject to
VAT
FACTS:
BIR’s CONTENTION
 moved for reconsideration – attack
the jurisdiction of DOJ
 CONTENTION: DOJ has no
jurisdiction over the case since the
dispute involved tax laws
administered by the BIR and
therefore within the jurisdiction
of the CTA.
ISSUE:
WON
the DOJ (Secretary of
Justice)
has jurisdiction over the
case
RULING:
 Yes. the DOJ is vested by law
with jurisdiction over this case as
this involves a dispute between
government owned corporations
(PSALM and NPC) and a
government office (BIR) over the
imposition of VAT on the sale of
the two power plants
EXPLANATION:
 There is no question
that original jurisdiction is
with the CIR, who issues
the preliminary and the
final tax assessments.
EXPLANATION:
 However, if the government
entity disputes the tax
assessment, the dispute is
already between the BIR
(represented by the CIR)
and another government
entity, in this case, the
petitioner PSALM.
BASIS:
 PD 242:
 all disputes and
claims solely between government
agencies and offices, including
government-owned or controlled
corporations, shall be administratively
settled or adjudicated by the Secretary
of Justice, the Solicitor General, or the
Government Corporate Counsel,
depending on the issues and
government agencies involved.

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