Taxation, 2012 Bar — Question 60

MULTIPLE CHOICE

X Corporation had excess income tax payment for the year 2008, which it chose to carry over in 2009. In filing its 2009 corporate income tax return, it signified its intention (by checking the small box "refund" at the bottom of the return) to get a refund of the overpaid amount in 2008. Can the refund be allowed or not, and if disallowed, does X Corporation lose the claimed amount? a) X Corporation may not get the refund because the decision to carry over in 2008 was irrevocable for that year, and it may not change that decision in succeeding years; b) X Corporation may not get the refund in 2009, but the amount being claimed as refund may be utilized in succeeding years until fully exhausted because there is no prescriptive period for carry over of excess income tax payments; c) X Corporation may get the refund, provided that it will no longer carry over such amount or utilize the same against its income tax liability in the future; d) X Corporation may file instead a claim of tax credit, in lieu of refund.

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