THE COURT of Tax Appeals (CTA) has voided transportation and logistics company Arrow Freight Corporation’s (AFC) P33.29-million tax refund claim due to its failure to file a timely motion for reconsideration.
In a 12-page ruling dated Nov. 15, the CTA affirmed its First Division’s Mar. 29, 2022 resolution that dismissed AFC’s tax refund from alleged excess creditable withholding tax (CWT) for the taxable year 2014.
On Aug. 23, 2021, the appellate court directed the Commissioner of Internal Revenue (CIR) to refund P15.59 million, a partial amount of the total claimed tax refund of P33.29 million.
Following this ruling, AFC submitted a petition to the court, but it was subsequently denied. The appellate court emphasized that its August 2021 decision has attained finality and is not subject to further appeal or modification. This is attributed to AFC’s failure to timely file a motion for reconsideration.
“This Court cannot consider AFC’s Petition for Review because its Motion for Reconsideration filed before the Court in Division was filed out of time; thus, it already lost its right to appeal,” according to the ruling penned by Associate Justice Corazon G. Ferrer-Flores.
AFC contended that the date of receipt of the Notice of Decision indicated as Oct. 16, 2021, was manipulated through photo manipulation. The company said they had only received the notice on Nov. 15, 2021, justifying their late filing of a motion.
The CTA said the company has not proven its allegation of forgery with sufficient evidence. — Jomel R. Paguian
