MANILA -- The Court of Tax Appeals (CTA) partially granted a plea for tax refund filed by a local cable provider.
In a 37-page decision dated November 8 released Thursday, the tax court's Third Division through Associate Justice Ma. Belen M. Ringpis-Liban ordered the Bureau of Internal Revenue (BIR) to refund or issue a tax credit certificate in favor of Sky Cable Corp. worth PHP4.87 million.
The firm had originally sought a refund of in excess of PHP12 million.
The amount represents the latter's overpayment of withholding taxes on royalties paid from May 2013 to December 2014.
Destiny Cable Inc. and Sky Cable on various dates entered certain distribution agreements, with various non-resident corporations/entities for their respective cable television subscribers.
In May 2012, Sky Cable and DCI entered into an asset purchase agreement and deed of sale and assignment, with DCI selling its assets, subscription contracts, and other contracts and assets to Sky Cable.
The agreement was approved by the National Telecommunications Commission on Dec. 18, 2012.
From January 2013 to December 2014, Sky Cable Corp. remitted final withholding taxes on income payments to non- resident cinematographic films owners, lessors, distributors: Business News (Asia) LLP (CNBC Asia Pacific), Discovery Networks Asia Pacific Pte Ltd., Eurosport SAS, International Global Network B.V. and Nickelodeon Asia Holdings Pte Ltd.
In granting the smaller amount as a tax refund, the court excluded from computation supposed payments to Home Box Office (Singapore) and Nimbus Media Pte. Ltd., due to the firm's failure to show a distribution agreement and invoice and check voucher to prove that payments had been made.
On March 16, 2015, Sky Cable filed an administrative claim or refund with the BIR-Large Taxpayers Service for excess taxes withheld and paid by it from royalty payments during the years 2013 and 2014 in connection with its agreements with various non-resident film owners, distributors and lessors.
A petition for review was eventually elevated to the CTA on June 17, 2015. (PNA)
