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

The Philippine Court of Tax Appeals Jan. 16 issued a decision in CTA Case No. 10570, clarifying the validity of assessments for alleged tax deficiencies. The taxpayer, a domestic corporation engaged in printing and publishing, challenged assessments for deficiency income tax (IT) and VAT for Taxable Year (TY) 2013. The Commissioner of Internal Revenue (CIR) contended that the assessments should be sustained, citing BIR Ruling No. 421-2013, while classifying yearbook sales as VAT-taxable. On appeal, the Court of Tax Appeals, Special Third Division, found that: 1) yearbook printing is VAT-exempt because yearbooks qualify as books under the law; 2) the ...