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

The Philippine Court of Tax Appeals Oct. 10 issued a decision in CTA EB No. 2965, clarifying the refund of excess and unutilized creditable withholding taxes (CWTs). The taxpayer, a power corporation, requested a refund of excess and unutilized CWTs, upon which the Commissioner of Internal Revenue didn’t act. The Court of Tax Appeals partially granted the taxpayer’s claim. The Commissioner appealed, arguing failure to exhaust administrative remedies. Upon appeal, the Court of Tax Appeals, en banc, found that: 1) the taxpayer satisfied legal requirements by filing an administrative claim followed by a judicial claim within two years of filing ...