CTA partially grants DMCI鈥檚 petition
THE Court of Tax Appeals (CTA) has partially granted DMCI Holdings, Inc.鈥檚 petition against the Bureau of Internal Revenue鈥檚 (BIR) 2016 tax assessment, reducing the company鈥檚 originally disputed P199.28-million liability while upholding certain withholding and documentary stamp taxes.
The 73-page decision of the CTA Third Division, promulgated on Nov. 4 and penned by Associate Justice Marian Ivy F. Reyes-Fajardo, canceled DMCI鈥檚 deficiency income tax and compromise penalties for taxable year (TY) 2016, citing lack of legal and factual basis.
At the same time, it confirmed the company鈥檚 obligations for final withholding tax (FWT), expanded withholding tax (EWT), fringe benefit tax (FBT), and documentary stamp tax (DST), with modifications.
The court found that the BIR had ignored DMCI Holdings鈥 net operating loss of P51.72 million for 2016 and partially over-assessed undeclared income and unnecessary expenses. As a result, the company鈥檚 total tax liability was reduced to P145.53 million, inclusive of basic taxes, surcharges, and deficiency interest.
DMCI, a publicly listed holding firm with interests in construction, real estate, mining, and utilities, is ordered to pay P137.85 million for FWT, P1.71 million for EWT, P2.91 million for FBT, and P3.05 million for DST, in addition to 12% annual delinquency interest on the outstanding amount starting May 1, 2021 until full payment.
The CTA said the ruling strikes a balance between the taxpayer鈥檚 right to due process and the BIR鈥檚 mandate to collect revenue under the National Internal Revenue Code. 鈥 Erika Mae P. Sinaking
