The relevant supporting documents that a taxpayer must submit in support of its administrative claim pertain to documents that the taxpayer deems necessary to sufficiently bolster its claim.

On December 2, 2011, taxpayer filed its administrative claim for the refund of its unused input tax related to zero-rated sales for the year 2010. Together with the filing of its administrative claim, it submitted some supporting documents. On April 27, 2012, taxpayer filed its appeal/judicial claim with the Court of Tax Appeals. Among others, the BIR argued that taxpayer failed to exhaust administrative remedies with the submission of all necessary and relevant documents in support of its administrative claim. According to the BIR, a letter of authority (LOA) was issued on February 23, 2012 containing the checklist of requirements for tax investigation. Also, on April 24, 2012, the BIR sent to the taxpayer First Notice for the presentation of books and other accounting records and on June 14, 2012, taxpayer received Second and Final Notice for presentation of books and accounting records. In all these cases, BIR claimed that the taxpayer did not submit the complete supporting documents. Further, it argued that the submission of complete documents in support of the administrative claim is required before the 120-day period shall apply and before the taxpayer could avail of judicial remedies.

The CTA disagreed with the BIR. According to the CTA, the taxpayer was able to prove its submission of supporting documents attached to the administrative claim notwithstanding the BIR’s request for additional documents. Taxpayer exhausted the available administrative remedy when it filed the administrative claim together with the attached supporting documents it perceived to be sufficient and complete. The relevant supporting documents that a taxpayer must submit in support of its administrative claim pertain to documents that the taxpayer deems necessary to sufficiently bolster its claim. While the BIR is allowed to request the submission of additional documents from the taxpayer, it cannot dictate what documents to submit. It is the taxpayer’s choice to either (1) elevate its refund to the CTA after the lapse of the 120-day period from the submission of what it considered to be complete documents or (2) comply with the BIR’s request and submit additional documents. If taxpayer chooses to comply with the BIR’s request and submit additional documents prior to the filing of the judicial claim, then the counting of the 120-day period shall be reckoned from the time it submits the additional document. [Nokia (Philippines), Inc. vs. Commissioner of Internal Revenue, CTA Case No. 8481, July 2, 2014)