MANILA – The Court of Tax Appeals (CTA) en banc has upheld an earlier ruling by its Third Division turning down a refund claim of nearly PHP24 million filed by Procter & Gamble’s (P&G) regional operating headquarters (ROHQ).
The CTA denied the claim for lack of merit and affirmed the January 2022 decision that the earlier ruling was in accordance with the prevailing rules and jurisprudence.
The claim for PHP23.84 million refund excess and unutilized input value-added tax (VAT) covering three months in 2014 was originally denied by the Bureau of Internal Revenue in 2017 for failure to submit complete documents and for lack of factual basis.
The P&G claimed it had difficulties in procuring the authenticated business registration documents of its 68 clients located in various countries.
“An applicant for a refund or tax credit must not only prove entitlement to the claim but also comply with all the documentary and evidentiary requirements, such as VAT invoicing requirements provided by tax laws and regulations. Well settled is the rule that refunds or tax credits are strictly construed against the taxpayer, just like tax exemptions,” the court said in its Aug. 14 decision released Friday.
The CTA emphasized that the burden is on the taxpayer to show that all conditions for the grant of the tax refund or credit have been complied with.
P&G is an American multinational consumer goods corporation. Its headquarters is located in Cincinnati, Ohio, United States while its manufacturing operations run in at least 36 countries. (PNA)