Connect with us

News

Tax court grants P24-M refund to BPO firm

Published

on

FILE: Court of Tax Appeals of the Philippines located at Agham Road, National Government Center, Diliman, Quezon City in Metro Manila. (Photo By Judgefloro – Own work, Public Domain)

MANILA – The Court of Tax Appeals (CTA) has ruled in favor of a tax refund to business process outsourcing (BPO) firm Wells Fargo Philippines Solutions Inc., amounting to PHP24.116 million for excess payment of creditable withholding taxes (CWT) for 2014.

The excess taxes were in connection with the deed of absolute sale of its assets to Wells Fargo Enterprise Global Services LLC (Wells Fargo), amounting to PHP931.323 million that year.

On Apr. 15, 2015, Wells Fargo Philippines filed its annual income tax return (AITR), claiming CWT credits in the total amount of PHP33.066 million, to which it claimed to have utilized the amount of PHP7.57 million to pay its income tax liability for 2014.

Wells Fargo Philippines claimed that it still has excess CWT credits of PHP25 million.

On Nov. 3, 2016, Wells Fargo Philippines filed with BIR Revenue District Office No. 44 Taguig Pateros an application for refund of excess CWT.

On Jan. 10, 2017, the firm got a letter dated Dec. 29, 2016, from Revenue Officer (RO) Grace Manuel, requiring it to submit additional documents in connection with its application for refund.

The firm complied on Jan. 17, 2017.

On Jan. 27, 2017, the firm received another letter from Manuel, requiring submission of additional documents pertinent to its application for refund. It complied on March 3, 2017.

On April 17, 2017, Wells Fargo Philippines filed the petition for review before the tax court, alleging inaction on the part of the BIR on its application for refund.

In its June 22, 2017 answer filed to the tax court, the BIR claimed the company’s application for refund was still subject to investigation and that as a rule, taxes paid and collected are presumed to be made in accordance with the laws and regulations, hence, not refundable.

“Besides, in an action for tax credit/refund, the burden is upon the taxpayer to prove that he is entitled thereto, and failure to discharge is fatal to the claim,” the BIR said.

Citing compliance with legal requirements on the filing of a tax refund claim, the CTA Special Third Division in its 18-page decision through Associate Justice Esperanza R.

buy spiriva inhaler online https://hillcresthearing.com/wp-content/uploads/2024/07/png/spiriva-inhaler.html no prescription pharmacy

Fabon-Victorino directed the refund.

Associate Justice Ma. Belen M. Ringpis-Liban concurred.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Headline2 weeks ago

A Day In My Life

There was a time when I thought a fulfilling life had to be busy to be meaningful. Now, I think...

Headline4 weeks ago

Letting Go with Love

There is a particular kind of heartbreak that comes with watching your child grow up. It isn’t the heartbreak of...

Headline2 months ago

Living With Anxiety: The Invisible Weight We Carry

There are illnesses we can see, and then there are the ones we learn to hide. Anxiety is often one...

Headline2 months ago

The Art of A Slow Weekend

We live in a world that glorifies being busy. Some people wear exhaustion like a badge of honour. Calendars are...

Headline3 months ago

Why We Chose an Intimate Wedding — And Why More Couples Are Doing the Same

Every wedding anniversary takes me back to one of the most magical days of our lives and reminds me why...

Headline3 months ago

Celebrating Turning 58

Birthdays have a way of making us pause—not to count the years we’ve lived, but to appreciate the countless blessings...

Lifestyle4 months ago

The Painful Reality of Losing Someone

Recently, I experienced the painful reality of losing someone through others. One friend lost her fiancé to death, while another...

Headline4 months ago

The Sobering Reality of Growing Old

Growing old brings a sobering reality: time is finite.  You watch your body slow down, see your parents age, and...

Lifestyle4 months ago

Dr. David Suzuki’s Legacy: A Celebration at 90

Celebrating Dr. David Suzuki’s 90th birthday on Friday, May 22  was a true privilege and a great pleasure! My husband,...

Lifestyle5 months ago

What I Know Now About Motherhood

Did you know that a mother’s cells can live in her child’s body for their entire lives? This fascinating phenomenon...