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SC approves P600M tax settlement of Citysuper, operator of Landmark Trinoma
SC approves P600M tax settlement of Citysuper, operator of Landmark Trinoma
The Supreme Court (SC) has approved the P600 million compromise agreement between the Bureau of Internal Revenue (BIR) and Citysuper, Inc. to settle fully the firm’s tax deficiencies for taxable year 2011.
Citysuper, which “operates under the commercial name of Landmark Trinoma, and is engaged in selling of merchandise and products through groceries and department stores,” has paid the P600 million tax deficiencies including the more than P10.2 million in documentary stamp tax.
The compromise agreement between BIR and Citysuper was presented to the SC for approval in line with the High Court’s May 20, 2021 decision on the petition filed the government’s tax agency.
The SC’s 2021 decision reversed the ruling of the Court of Tax Appeals (CTA) as it declared valid the P2.08 billion assessment notices for 2011 tax deficiencies issued by the BIR against Citysuper in 2015.
On Dec. 31, 2021, Citysuper told the BIR it had it had been suffering from business losses due to the Covid-19 pandemic. It offered to settle its deficiency tax assessment subject of the SC case for P600 million. It also filed a motion to reconsider the SC’s decision and manifested its desire for a compromise agreement with BIR.
On Jan. 20, 2022, the BIR and Citysuper entered into a Judicial Compromise Agreement which contained the payment of P600 million to settle the tax deficiencies and the more than P10.2 million documentary stamp tax.
In a resolution made public last Monday, Feb. 26, the SC approved the compromise agreement. The SC said:
“After a review of the terms of the Judicial Compromise Agreement, this Court finds that it is not contrary to law, morals, good customs, and public policy and appears to be freely executed by the petitioner (BIR) and private respondent (Citysuper).
“Thus, this Court grants the prayer of the parties and bestows judicial approval upon their Compromise Agreement.
“Accordingly, the Manifestation and Motion filed on Feb. 2, 2022 is granted. The Jan. 20, 2022 Judicial Compromise Agreement is noted and approved.
“The parties are enjoined to abide by its terms and conditions and to comply strictly and faithfully with their corresponding obligations. The case is considered closed and terminated. So ordered.”
Please read:
SC reinstates BIR’s P2.08-B tax assessment vs Citysuper, operator of Landmark Trinoma https://mb.com.ph/2021/10/29/sc-reinstates-birs-p2-08-b-tax-assessment-vs-citysuper-operator-of-landmark-trinoma #manilabulletin via @manilabulletin