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Agenda
Recent court decisions
Supreme Court
CTA may decide on proper tax category in refund cases
In CWT refund, presentation of succeeding quarterly ITR is not
required
Foreign equity: suspicion of dummy triggers grandfather rule
Request for reinvestigation must be granted to toll prescription
SC may rule on prescription even on appeal
Government may be estopped from collecting taxes
Withholding agent can refund an erroneously withheld and remitted
tax
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Agenda
Recent court decisions
Court of Tax Appeals
Reporting the revenues related to the CWT refund is critical;
Certificates of creditable tax are sufficient proof
A BIR ruling cannot amend a Revenue Regulation
Cockpit arena is not subject to amusement tax
Issuance of FAN without considering taxpayers reply to PAN violates
due process
Remitting foreign currency on zero-rated sales is vital in input tax
refund
Consider net loss in deficiency income tax assessment
Deficiency withholding tax on compensation may be computed using
employees effective tax rate
Tax Updates: Threshing Out the Gray Areas
Isla Lipana & Co., PwC member firm
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Agenda
Recent court decisions
Court of Tax Appeals
Valid LOA a prerequisite for tax assessment
Constructive service of PAN and FAN when proper; Letter of
Authority for unverified prior years is void
Services to international shipping company are zero-rated; no other
proof required
Intent to evade tax is not vital in falsity
FWT paid on recalled interim dividends is refundable
Deficiency withholding tax is not a penalty
FDDA issued before the 60-day period to submit documents is void
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Agenda
Recent court decisions
Court of Tax Appeals
An RDO letter is not a CIR decision appealable to CTA
Oral testimony is not enough to support bad debts expense
The 60-day period to submit documents is more appropriate in a
request for reinvestigation
Zero-rating status at the time of sales crucial in a refund claim
Appeal to the CIR does not refresh the 180-day period
Overpaid tax under treaty is refundable
Refund claim with ITAD valid if due to tax treaty
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Agenda
Recent BIR and SEC issuances
CARs not included in BIR list are not official
Dividends paid subject to the preferential rate of 10% of the gross
amount
Royalty payments subject to 10% preferential final withholding tax
rate
Petroleum subcontractor is not exempted from 15% branch profit
remittance tax (BPRT)
Verification of eCARs under LRA's PHILARIS
Regular corporations or partnerships cannot use investment as part
of their names
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Supreme Court
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Tax Updates: Threshing Out the Gray Areas
Isla Lipana & Co., PwC member firm
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Tax Updates: Threshing Out the Gray Areas
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A claim for refund of excess input tax must show that the remittances
of foreign currency payments correspond to its zero-rated sales.
Where the inward remittances cannot be ascertained from the
companys zero-rated sales for the period and how much of the
purported zero-rated sales were duly receipted, the claim for refund
must be denied.
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BIR Issuances
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Tax Updates: Threshing Out the Gray Areas
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