Philippines Court of Tax Appeals Issues Decision Clarifying Tax Refunds for Unused Creditable Withholding Tax

The Philippine Court of Tax Appeals April 24 issued a decision in CTA Case No. 10585, clarifying tax refunds for unused creditable withholding tax (CWT). The taxpayer, Sony Philippines, reported overpaid tax and requested a refund for the unutilized CWT. The Commissioner of Internal Revenue (CIR) denied the refund request on the grounds that the taxpayer failed to exhaust administrative remediesm, and failed to prove that the CWT income was declared. The taxpayer appealed, arguing that it was entitled to a tax refund on the unutilized CWT. On appeal, the Court of Tax Appeals found that: 1) the taxpayer had ...