THE Court of Tax Appeals (CTA) has upheld a tax credit certificate granted to Ayala Corp. worth P127.3 million over its excess creditable withholding tax (CWT) for 2012 and 2013.
In a three-page resolution on July 18, the CTA special first division denied the motion for partial reconsideration of the Bureau of Internal Revenue (BIR) which claimed that the court had mistakenly ruled on Ayala Corp.’s refund entitlement despite lack of evidence of actual remittance of taxes to the bureau.
“The Court finds that the arguments posited by respondent in the instant motion are mere repetition of his previous arguments in his Motion for Partial Reconsideration (re: Decision promulgated on 13 February 2018) which have been duly considered and adequately discussed in the assailed Amended Decision,” the court said.
“Accordingly, the Court maintains its ruling that the certificate of creditable tax withheld at source is the competent proof to establish the fact that the taxes are withheld,” it added.
The court also cited a Supreme Court decision that proof of actual remittance is not needed in order to prove the withholding and remittance of taxes.
It said Ayala Corp. established the fact of withholding by submitting Schedule of Creditable Taxes Withheld for 2012 and 2013 and relevant Certificates of Creditable Tax Withheld at Source.
“Based on the foregoing, this Court finds no compelling reason to reverse or modify the assailed Amended Decision,” it said.
In the Feb. 13, 2018 decision, the court partially granted the tax refund claim of Ayala Corp., allowing only P81.7 million in tax credit certificates out of an initial P128.7 million claim, due to discrepancies in income payments corresponding to the CWT.
However, after submissions of motions for reconsideration, the court, in its amended decision on March 25, 2019 partially granted Ayala Corp.’s appeal and increased the grant to P127.3 million as it is the amount “which corresponds to the income payments which were verified to have been included in petitioner’s taxable gross income” in its Annual Income Tax Returns for both years.
The resolution was written by Associate Justice Cielito N. Mindaro-Grulla and concurred in by Presiding Judge Roman G. Del Rosario and Associate Justice Erlinda P. Uy. — Vann Marlo M. Villegas
