By Jun Ramirez
The Court of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to return to a business conglomerate almost P1 billion in excess creditable withholding tax (CWT) for 2013.
Court of tax Appeals (MANILA BULLETIN)
SM Investments Corporation (SMIC) brought the case to the CTA after the BIR rejected its claim.
The BIR argued that the petitioner was not entitled to a refund or issuance of a tax credit certificate for failing to submit evidence supporting the actual remittance of the CWT.
In a 28-page decision, the court Second Division stated that under Sections 57 and 58 of the Tax Code the petitioner is not obliged to submit evidence on its refund claim, but the tax withholding agent of the BIR.
The court stressed it is the duty of the withholding agent to withhold, deduct and remit the CWT.
It said the certificates of CWT issued by the withholding agent are prima facie proof of actual payment by the claimant-payee in this case SMIC.
"There is no need for refund claimant to prove actual remittance but the tax withholding agent," the court said.
It added that if the withholding certificates are incomplete or false the BIR can take the appropriate criminal or civil action against responsible parties.
The decision penned by Associate Justice Juanito Castaneda, Jr., pointed out that tax withholding agents are constituted representatives of the BIR entrusted to withhold and remit taxes for the government.
SMIC, also known as SM Group, is into shopping malls, banking, real estate and tourism.(Jun Ramirez)