MANILA – The Court of Tax Appeals (CTA) has became down a petition for a PHP12-million tax refund filed by an recordsdata processing and preparation firm.
In a 21-internet page dedication dated February 9 and written by Companion Justice Juanito C. Castañeda Jr., the tax court docket’s Second Division denied for lack of advantage the suit filed by Regus Carrier Center Philippines, a firm based mostly totally on the Bonifacio Global City in Taguig.
The firm filed its application for a tax refund for PHP12.295 million for 2017, which the firm claimed used to be erroneously composed enter tag-added tax (VAT), because it used to be phase of its zero-VAT-rated sales to a non-resident foreign client no longer doing industry within the Philippines.
Ruling in opposition to the firm’s claim, the tax court docket mentioned it didn’t cowl that the companies it equipped to the non-resident client were performed within the Philippines, one in all the necessities by the tax code for a provide of companies to be discipline to the VAT price of zero p.c.
“Petitioner didn’t obviously save its compliance (with crucial aspects). The same companies settlement would no longer trust any indication that the subject companies were to be performed by the petitioner within the Philippines. Neither is there any diverse proof which tends to cowl truth,” it mentioned.
The CTA moreover pressured that authorized guidelines granting tax exemptions including tax refunds are interpreted strictly in opposition to the occasion claiming the exemption.
Companion Justice Lanee S. Cui-David concurred while Companion Justice Jean Marie A. Bacorro-VIllena dissented. (PNA)
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