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

The Philippine Court of Tax Appeals Dec. 17, 2025, issued a decision in CTA Case No. 11048, clarifying the validity of assessments for alleged tax deficiencies. The taxpayer, a corporation, challenged deficiency assessments for income tax (IT), VAT, expanded withholding tax (EWT), final withholding tax (FWT), final withholding VAT (FWVAT), documentary stamp tax (DST), and improperly accumulated earnings tax (IAET). The Commissioner of Revenue argued that the taxpayer failed to submit relevant documents to refute the assessments. On appeal, the Court of Tax Appeals, First Division, found that: 1) the VAT assessment was invalid because there was no output VAT ...