CTA Case No. 5331

DECISION

C.T.A.

CASE NOč 5331 - 2 - In a aʢmilar incident, petitioner also accrued the SUT>'ʠ cd P4B5, 2H9. 82 :fl(;:r t.he :fi:cst.

calendalf· qua:o·te:r cd t.he 1994, as h\YH;e o:f:fice ch.:u·ges in :favor of FCB International, Inc.

c•FCB", 1or brevity>, a co:rporation duly organized under the .l.awa:• o:f ·the Stat.e o:f DelawB:n?, U.S. A. , pursuant to an agreement betveen the parties :·equiring petit.ioner t.c.• pay F'CH 2X o:f i t.s billings on CoJgate-PalmoJive AccounL.

paid and remitted to the BJR monthly accruals :for said quarter in the aggregale amount.

o;f P121, 322.70 E}thi l.d Ls Petitioner's memorandum, p.2) However, :i. r.

vi e>J eel "(ʣ-2-8", "D-·4" and the cancellatiʤm a.fore'ltJentioned SO'll"eement u£1 a reʡn.tl t.

c•.f "G-4"';

of the Colgat,e-Pal Jlil<f.a.live Acc<rn.mt from the pet.j·tione·f· the said am.c.•unt.

of .. harges wa.E.:

neve:t· pa.id to FCB and neither was it claimed aa deduction in petitioner's taxable gross income 1or the year 19J4.

Consequently, a written claiʟ ior refund/issuance of tax credit was :filed by thE> pet.jtioner witt, the respondent on June 9, 1995 regarding the excess taxes vi thheld on comp<:Hlsation amount.ing to P2, (1:32, 882. 52 and the erroneous taxes witbheld on home o:ffice charges in t.he BUill o:f ?121,322.70, <E:>thibit "'A"}.

I•ECISJOII C- T- A.

CASE 110.

5.331 - :3 - On February 19.

1996, petitioner followed-up t.s claim with a supplemental letter, but ineJ-.:p1icah1 y, respondent cont.inued h€•r apparen·t i:nactic:tli'J on t.heo wat te:c.

on Felbruary 1996.

pet.i tioner was or..onstratned to inst.i tutA?

th£o.> instc:mt appeal on ac:count o:f the nea:r expiry o:f t.he t.\fo-yu· ar period :f:r·om the date of payment o1 the tax within which a judicial claim for refund or issuance o:f tax credit may be seasonably begun, as ·provided under Sec·tion 230 o:f t.he• Nat.ional Re•vwnue Code.

At.

bar, petitioner restated its Respondent, on the other hand, could only answer, int.er alia, that petitioner's claim is pending adminlstrative :investigation.

trial proeeeded acco:rdingly and pel.tt.ione:c presented evi.d€·ȩȪ•oe in support, A careful exaȨination o1 such evidence convinces Us that petȧtioner has proven its entitlement for claim for refund.

However with respect to the mount corresponding to the withholding Lax on the accrued bonuses of its employees, the total auȦ proven, by the evidence presented is only P1,947.067.89 and not P2, 175,478.15 as claimed in the petition for review.

A :final recomput.at.ion o:f the re:fundablt?

granted to petitioner ia detailed as follows:

DECISION G.T. A. CASE WO. S351

WITGHOLDING TAX OR BONUSES

For the wonth of January 1994 (C-1~f} Amount of Particular Exh. “ax Wittheld Central Group C-1-A P1677, 323, 96 Hacrographics C-1-8 66, O76. (Ww South Division G-1-C 143, 017. 06 Horth Division CG-i-bd 98, 656. 17 West Divigion G-L-E 107, 474.62 PLOT Group C-4-F Sz, 487.32 East Division C-4-6 AV3, 763.65 ® 806, 792. 78 For the wonth of February 1994 (Exh. B-1l-if> Awount of Particular oo Exh, Tax Wittheld Central Grow D-l-A PIGS, 652. 43 Racrographics h-i-B £0, 730. 66 South Division - - 148, 599. 26 North Division fi- 34, 854.93 West Divisioa D- 1 : 125, 566. 17 PLDT Group O-k~F 64, 227.67 East Division D-1-G £63, O31. 33. 600, 661.79 For the wonth of April 1994 (Exh. E-1-G) Amount of _ Particular oo Exh, ax Wittheld Ceritral Group E-1l-A P @9, 348. 49 Waceugraphics E-1-8 11, 233.52 South Division E-1-¢€ 74, 456. 60 Horth Bivision E-1t-5 50, 426. 37 West Bivisien E-1-€ Si, 749. 45 East Divigzion E-1-F __ 62, 398, 93 339, 613. 36 TOTAL PL, 947, 067, 89

WITHHOLDING TAX G& TECHNICAL TRANSFER - WOYALTY

Amount of ——flgnth EK lax Wittheld January 1994 C-2-B F LF, 949. 25 February 1994 ti-4 35, 759. 45 larch i994 6-4 67, 564, 00 TOTAL F_ 121, 322. 70 TOTAL AMOUNT REFURRABLE P2, 068, 990. 99 DECISIOH C.T.A.

CASE HO.

533 - 5 -

WHEREFORE, ©n view o:f the :foregoing, the instant Peti t.icm :fo1¬ Review is hereby GRAHTED.

Respondent i.s hereby ORDEUED to

ISSUE & TAX CREDIT

CERTIFICATE in :filovor o:f petitioner· B.ASIC ADVERTISING.

P2,068,390.59 iMmediatelyŽ No cost.s.

SO ORDE'RED.

WE CONCUR:

IIIC.

the amc•un•t.

of I hereby cert®1y that this decislOh vas re­ched Tax Appeals in °ccordance vith Sect¯on 1«.

Article VIII o:f the Constitution.


Presuu:lino Judge Court oi Taª Appeals