Mapua University (Facebook)
MANILA – The Court of Tax Appeals (CTA) has junked the City of Manila’s assessment of more than PHP82 million in local business taxes (LBT) on Malayan Education System, Inc. (MESI), which runs the Mapua University, Malayan Colleges and Malayan High School.
The CTA partially granted the petition filed by MESI, which questioned Manila's deficiency tax assessment of PHP82.53 million from 2009 to 2012, reduced from the original PHP119,840,988.30.
In a 17-page decision dated May 10 and published online Friday, the CTA ruling reversed and set aside the Oct. 27, 2021 decision of the Manila Regional Trial Court Branch 11.
The ruling said although MESI is a stock and for-profit domestic corporation, which is the subject of taxes, the city violated its right to due process by failing to specify the portion of the Manila revenue code under which it is being held liable.
A scrutiny of the assessment letter dated Nov. 6, 2013 showed that the respondent was not informed as to the particular law it violated, the CTA said.
"The failure of respondent (Manila government) to indicate the particular provision of the Manila Revenue Code allegedly violated by petitioner (MESI) in the face of the letter of assessment violates glaringly the constitutional right to due process of petitioner. Such violation impugns the validity of said assessment," the CTA ruled. (PNA)
