Income Court docket Denies PAL Supply to Refund P7.4-M Excise Responsibility – Manila Bulletin

news /. National /. The tax court rejects the PAL offer to reimburse the P7.4-M excise tax

The tax court rejects the PAL offer to reimburse the P7.4-M excise tax

The Court of Tax Appeals (CTA) has denied Philippine Airlines (PAL) ‘s motion to reclaim pesetas 7.4 million in excise duty for the late filing of the lawsuit.

The court upheld the decision of its second division that such a lawsuit should be filed within two years of paying the tax under Section 229 of the Tax Code.

According to records, on August 22, 2014, in protest, PAL paid the wine, liquor and cigarette import tax for its commissioner in protest.

She filed the lawsuit on August 11, 2020, five years after the deadline.

The court also found that PAL was simultaneously asserting the administrative and judicial claims, which is not permitted under the tax code.

This complaint must first be brought to the BIR, which will conduct the investigation, and later to the court if the petitioner makes an unfavorable decision.

As part of its franchise (Presidential Decree 1590), PAL is exempt from all taxes, duties and fees, with the exception of corporation or franchise tax at two percent of its gross annual income.

The tax exemption privileges were changed by Republic Act 9337, with the option of importing for VAT under certain conditions.

SIGN UP FOR THE DAILY NEWSLETTER

CLICK HERE TO REGISTER