Philippines Court of Tax Appeals Issues Decision Clarifying Refunds of Erroneous Capital Gains Tax Payments

The Philippine Court of Tax Appeals Nov. 21 issued a decision in CTA EB No. 2993, clarifying refunds of erroneous capital gains tax (CGT) payments. The taxpayer, an individual, was the president, CEO, and shareholder of a domestic corporation. The taxpayer sought a refund of overpaid CGT after the purchase price of specified shares was reduced post-payment. The taxpayer argued that he was entitled to the refund for various reasons, including because the administrative and judicial claims were filed within the two-year prescriptive period. The Commissioner of Internal Revenue (CIR) contended that the Court of Tax Appeals, en banc, couldn’t ...