Philippines Court of Tax Appeals Issues Decision Clarifying Refund of Excess, Unutilized Creditable Withholding Taxes

The Philippine Court of Tax Appeals Oct. 1 issued a decision in CTA Case No. 11128, clarifying the refund of excess and unutilized creditable withholding taxes (CWTs). The taxpayer, Ford Group Philippines, engaged in distribution and importation of vehicles. The taxpayer sought a refund of its excess and unutilized CWTs for 2020. The Commissioner of Internal Revenue (CIR) denied the claim. On appeal, the Court of Tax Appeals, Third Division, found that: 1) the fact that the total income payments correlating to the refund claim was greater than reported gross income on the taxpayer’s 2020 annual corporate income tax return, ...