MANILA, Philippines – The Court of Tax Appeals has partially granted Philippine Bank of Communications’ request for refund or issuance of a tax credit certificate for excess or unutilized creditable withholding taxes for 2009.
In a decision, the CTA has directed the Bureau of Internal Revenue to return or issue a TCC in favor of PBCom amounting to P14.39 million or a third of the amount being sought by the bank.
Based on its amended annual income tax return for 2009, PBCom reported a net loss of P592.04 million and an income tax overpayment of P85.37 million.
PBCom also reported unutilized creditable withholding taxes for the same year amounting to P44.56 million.
“This Court finds that only the income payments of P321.8 million related to the creditable withholding taxes of P14.39 million were clearly declared in petitioner’s general ledger and annual income tax return for 2009,” the CTA said.
“Petitioner was unable to utilize all the P85.37 million tax credits because it had no income tax liability due to losses incurred in its operations,” the CTA added.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
A corporation entitled to a tax credit or refund of the excess estimated quarterly income taxes paid in a given taxable year has two options: to carry over the excess credit or to apply for the issuance of a tax credit certificate or to claim a cash refund.
PBCom has exited from a 10-year government assistance program with the full settlement of a P7.6 billion loan from the Philippine Deposit Insurance Corp.
The amount represents the entire loan extended by the PDIC as its financial assistance to the bank in 2004.
PBCom had used the loan to purchase government securities.
