Court grants power plant operator P39-M tax refund

By Benjamin Pulta

June 20, 2023, 8:35 pm

MANILA – The Court of Tax Appeals (CTA) has ruled in favor of granting Laguna-based hydroelectric power plant operator CBK Power Company Ltd. PHP39.2 million in tax credits representing excess payment in 2016.

The CTA en banc affirmed the 2021 decision of the First Division in the case filed by CBK in 2017, initially seeking PHP45.54 million in refund.

The firm elevated the case to the tax court after the Bureau of Internal Revenue Large Taxpayers Service recommended the issuance of a tax credit certificate in the amount of PHP1.3 million only.

“The burden is on the taxpayer to show that he has strictly complied with the conditions for the grant of the tax refund or credit. However, once the requirements laid down by the NIRC (National Internal Revenue Code) have been met, a claimant should be considered successful in discharging its burden of proving its right to a refund,” the court said in its decision dated June 14 and made public Tuesday

The firm runs hydroelectric power plants and related facilities, including the Caliraya, Botocan and Kalayaan power plants in Laguna province.

It implements the Built-Rehabilitate-Operate-Transfer scheme of the government through the National Power Corporation. (PNA)