Bilyonaryo Jaime Augusto Zobel de Ayala-led Ayala Corporation will now be able to secure a higher tax refund of P97.18 million after getting a favorable ruling from the Court of Tax Appeals.
BusinessWorld reported the CTA Second Division granted the company’s motion for partial reconsideration that sought a larger refund, reversing a ruling in October last year that only allowed a P66.74-million refund.
The earlier decision disallowed P58.83 million from the total refund claim by Ayala on unutilized excess creditable withholding tax (CWT) for 2010 and 2011.
But the tax court found that on appeal, Ayala was able to explain and prove why P29.44 million of the amount should not have been disallowed by the first decision.
?Petitioner prepared a detailed list of explanations for each disallowance with cross-reference to relevant exhibits,? read the decision. ?Thus, the corresponding CWT in the amount of P29,439,987.63? shall be refunded to petitioner, in addition to the amount of P67,742,758.85 which was previously granted in the assailed decision.?
However, it did not allow the refund of the remaining P29.39 million amount from the original refund claim because of insufficient documentation.
The tax appelate court also rejected the Bureau of Internal Revenue?s contention that Ayala should have presented the payors and withholding agents to prove the fact of withholding.
