THE COURT of Tax Appeals (CTA) has granted NLEX Corp., a unit of Metro Pacific Tollways Corp. (MPTC), a P3.8-million tax refund for local business taxes erroneously paid to the City of Valenzuela for taxable years 2012 to 2019, citing the local government unit鈥檚 lack of tax jurisdiction.
In a Nov. 18 decision, the tax court鈥檚 second division ruled the expressway operator is entitled to a P3.8-million refund for the regulatory and services taxes collected by Valenzuela City on signage placed along the company鈥檚 road network within its jurisdiction.
The CTA determined that all transactions and income from the signage installation are accounted for at NLEX Corp.鈥檚 main office in Caloocan City, not in Valenzuela City, making the charges 鈥渆rroneously collected.鈥
鈥淩espondents are ordered to refund to petitioner the amount of P3,814,290, representing erroneously collected and paid Local Business Tax for signage services, the related surcharge and interest, and tax credited, for taxable years 2012 to 2019,鈥 a part of the 34-page ruling of Associate Justice Corazon G. Ferrer-Flores read.
Ms. Flores, in her decision, noted that local government units can only levy charges on the main office, branches, sales outlets, and warehouses of companies where transactions and businesses are made.
鈥淭he foregoing proves that petitioner has no branch, sales outlet, or warehouse in Valenzuela City鈥 and that all its activities or sales transactions pertaining to the income generated from such installations are consummated and recorded in petitioner鈥檚 principal office located in Caloocan City,鈥 the ruling said.
MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in 大象传媒 through the Philippine Star Group, which it controls. 鈥 Kenneth Christiane L. Basilio
