MANILA – The Court of Tax Appeals (CTA) has approved a PHP78-million compromise agreement between the Bureau of Internal Revenue (BIR) and local food and beverage giant Zest-O Corporation.
“The judicial compromise agreement entered into by the parties is approved and judgment is hereby rendered in accordance therewith. The parties are thus enjoined to faithfully comply with all the terms and conditions of the aforesaid compromise agreement,” the court’s Second Division through Associate Justice Juanito Castañeda Jr. said in a decision dated Oct. 7.
The company which sells juices and food products locally and abroad is led by billionaire Alfredo Yao.
The firm had filed a petition for review in 2016 for the cancelation of its deficiency income tax, value-added tax, deficiency stamp tax, and a penalty for the year 2011 totaling to PHP232 million, which includes of PHP101.9 million in interest.
A compromise agreement was subsequently entered into between the corporation and the BIR for a total compromise amount of PHP78 million. This includes an initial compromise amount of PHP52 million previously paid and an additional PHP26 million to be paid to the BIR.
The court approved the compromise agreement after it “finds the same in order and in compliance with the established laws, rules, and regulations”. (PNA)