THE Court of Tax Appeals (CTA) has sent back to a local court a case that was dismissed on the ground of prescription involving P24 million in local business taxes (LBT) collected by the Parañaque City government from a freight forwarding company in 2020.
In its ruling, the CTA finds it rather imperative for the Parañaque City Regional Trial Court (RTC) Branch 258 to spend some time and hold actual hearings over the case between Royal Cargo and the Parañaque City government.
“Since there has been no trial on the merits and the court a quo (referring to Parañaque RTC) has not received any evidence on the factual issues of the case, the Court deems it proper to remand the case to the court a quo for the reception of evidence to determine whether petitioner is entitled to its claim for refund,” the CTA said.
The tax court said contrary to the lower court’s ruling, the petition had been filed on time and had not exceeded the prescription period.
It also sided with the Royal Cargo’s claim that a statement of account (SOA) issued by the local government unit is not enough basis and is not the same as a tax assessment.
“The SOA merely tabulated the amount and nature of the tax and fees assessed but did not contain the amount of deficiency tax, surcharges, interests, and penalties due from petitioner. The SOA also did not indicate the period covered for purposes of prescription and was signed by the Chief of the BPLO (Business Permits and Licensing Office) and not the local treasurer,” the CTA added.
#OpinYonMetro #Paranaque #RTC #CourtOfTaxAppeals #OpinYon #WeTakeAStand