Philippines Supreme Court Issues Decision on Unused Creditable Withholding Tax

The Philippine Supreme Court July 15 issued a decision in G.R. No. 257219, clarifying refunds and tax credits for unutilized creditable withholding tax (CWT). The taxpayer, a broker market participant, reported a tax overpayment in its annual income tax return and filed an administrative claim requesting a tax credit for the excess CWT. The Court of Tax Appeals (CTA) denied the taxpayer’s claim, stating that the evidence presented was insufficient to prove that the taxpayer was entitled to a refund. Upon review, the Supreme Court reversed, finding that the CTA erred in: 1) discounting the taxpayer’s evidence solely because the ...