Philippines Court of Tax Appeals Issues Decision Clarifying Validity of Assessments for Alleged Tax Deficiencies

The Philippine Court of Tax Appeals Nov. 12 issued a decision in CTA Case No. 11091, clarifying the validity of assessments for alleged tax deficiencies. The taxpayer, a domestic corporation, challenged assessments for deficiency income tax (IT), VAT, expanded withholding tax (EWT), final withholding VAT (FWVAT), documentary stamp tax (DST), capital gains tax (CGT), registration fees, and compromise penalties for the taxable year (TY) that ended Dec. 31, 2018. The Commissioner of Internal Revenue (CIR) contended that the deficiency tax assessments should be maintained because the taxpayer failed to substantiate its claim and submit relevant supporting documents. On appeal, the ...