Court denies FEU’s appeal on P190-M business taxes paid in Manila

Published October 16, 2020, 2:25 PM

by Jun Ramirez

The Court of Tax Appeals (CTA) has rejected the petition of Far Eastern University (FEU) to get back almost P190 million in business taxes and mayor’s permit fees from Manila City Hall, describing it as “without merit.”

Court of Tax Appeals (MANILA BULLETIN)
Court of Tax Appeals (MANILA BULLETIN)

The resolution of the court’s Special Third Division affirmed the verdict earlier issued by the Manila Regional Trial Court.

The tax paid in protest was derived from tuition and other educational fees collected from students for the years 2009 to 2013.

“FEU failed to raise meritorious argument to justify the reversal of the assailed decision,” the court said, adding that “there is no tax exemption that favor the petitioner.”

The court said local government units are allowed under Section 5, Article X of the Constitution to create their own source of revenues.

It pointed out that the constitutional mandate is reflected in the Local Tax Code and Manila City Ordinance No. 8331.

The 25-page decision was penned by Associate Justice Juanito Castañeda, Jr.

 
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