MANILA – The Court of Tax Appeals (CTA) ordered the City of Manila to refund in full more than PHP64 million in taxes collected from port operator International Container Terminal Services Inc. (ICTSI) since 1999.
In its 12-page decision dated March 10, the tax court en banc granted the petition for review and ordered the City of Manila to refund or issue a tax credit certificate in ICTSI’s favor.
CTA ruled that the firm is entitled to a full refund of the erroneously and/or illegally paid local business taxes (LBT) for the first three quarters of 1999 and the succeeding years.
The ruling stated that the basis used for collection under Manila Ordinance No. 7794 was an instance of direct double taxation.
Direct double taxation means taxing twice for the same purpose, by the same taxing authority, in the same jurisdiction, in the same period.
“As direct double taxation was committed when LBT was imposed under Sec. 21 (A) on top of the business tax already imposed under Sec. 18, the excess LBT paid by petitioner, ICTSI, based on Sec. 21(A) is an erroneously and/or illegally paid tax which should be refunded accordingly,” the ruling read.
“A thorough examination of the judicial receipts submitted by petitioner and made part of the judicial records would show that petitioner is entitled to a refund of erroneously and/or illegally paid taxes for the periods succeeding the third quarter of 1999″ the court ruled.
The Philippine News Agency was still trying to get the reaction of the Manila city government as of posting time. (PNA)