Philam Properties Corporation vs. Commissioner of Internal Revenue

AMENDED DECISION

CTA CASE NO. 8635

Page2of13

of its excess Creditable Withholding Taxes ("CWT"), i.e., the income upon which the taxes were withheld were included in the return of the recipient.

The Court found a Php26,412,281.83 difference between the amount of gross income per CWT certificates (Php95,898,116.17) vis-a- vis the amount declared in petitioner's 2010 Annual Income Tax Return ("ITR") (Php122,310,398.00). Further, the Court was unable to determine the items which make up the gross income per 2010 ITR since petitioner failed to present sufficient proof of its components and the report of the Court-commissioned Independent Certified Public Accountant CICP A") did not provide any additional information thereon.

In its Motion for Reconsideration, petitioner asserts that the gross income per CWT certificates for CY 2010 is Php119,394,047.81 and not Php95,898,116.17, as stated in the Decision. Petitioner explains that the amount of Php95,898,116.17 represents income payments with original certificates (marked as Exhibits "P-23.¹" to "P-23.616"), official receipts, and was properly reported in its 2010 books. The remaining income payments amounting to Php23,495,931.64 (Php119,394,047.81 less Php95,898,116.17) correspond to CWT in the amount of Php3,127,253.03 and were all properly accounted for in Exhibits "P- 21.1" to "P-26-85," as shown in the schedule below:

Exhibit

Particulars

Income

CWT

"P-20"

Payment

Annex"C"

CWT where certificates provided were not original

Php

36,600.00

Php

1,830.00 (Exhibits "P-21.1" to "P-21.4")

Annex"D"

CWT where certificates provided were claimed twice 986,765.28 51,278.27 (Exhibits "P-22.1" to "P-22.13")

Annex"F"

CWT supported with original certificates and ORs with 2,589,395.43 388,409.32 related income recorded in 2009 books (Exhibits "P-24.1" to "P-24.18")

Annex "G"

CWT supported with original certificates with related 60,100.00 4,005.00 income not recorded in 2010 books (Exhibits "P-25.1" to "P-25.4")

Annex"H"

CWT supported with original certificates partly valid and partly with exception (Exhibits "P-26.1" to "P-26.85") Recorded in 2010 books with related ORs dated 2010 10,810,645.90 1,159,884.50 Recorded in 2010 books with ORs not yet provided 1,614,153.28 80,707.66 Not recorded in 2010 books with ORs not yet provided 165,421.65 21,692.25 Not recorded in 2010 books with ORs dated 2010 2,786.40 417.96 Recorded in 2009 books with ORs dated 2010 3,308,278.18 495,641.73 Recorded in 2010 books with ORs dated 2009 15,615.00 780.75 Recorded in 2010 books with ORs dated 2011 3,906,170.32 585,925.55 CWT not supported with certificates - 336,680.04

TOTAL

Php 23,495,931.44 Php 3,127,253.03 Petitioner points out that the total gross income from which the CWT were actually withheld is Php119,567,041.00 and not Php122,310,398.00. The former amount represents operating income,

CTA CASE NO. 8635 as reflected in

Schedule

1

(Schedule

of Sales/Revenues/Receipts/Fees), Section A of its 2010 ITRl, to wit:

Sale of Goods/Properties

Creditable Tax Withheld

Taxable Amount

Sale of Services

Php

13,463,493.00 Php 82,792,680.00

Lease of Properties

1,753,067.00 36,774,361.00

TOTAL

Php

15,216,560.00 Php 119,567,041.00 On the other hand, the amount of Php122,310,398.00 found by the Court, consists of petitioner's operating income, as enumerated above, and includes "Non-operating and taxable other income" in the amount of Php²,743,356.722.

Petitioner submits that all income payments reflected in the Certificates of Tax Withheld at Source can be traced to the detailed general ledger where the nature of income payment, payor, date paid, Official Receipt ("OR") No. and amount of CWT are posted. The information posted in the general ledger is consistent with the entries in the Audit Trail Listing where transactions are grouped by document type (i.e. official receipt). To further lend support to the entries in the General Ledger, the Allocation Report provides the allocation between income and CWT per payor.

Considering that petitioner submitted its detailed general ledger³, Audit Trail Listing⁴, Allocation Reports, Reconciliation Schedules, Certificates of Tax Withheld at Source, ORs and other supporting documents, petitioner avers that it has proven that the income payments from which the CWT were withheld were properly reported in its declared gross income per 2010 ITR. Hence, it complied with the second requisite for the refund or issuance of a TCC of its excess CWT, contrary to the findings of the Court. On August 6, 2015, the Court ordered respondent to comment on petitioner's Motion for Reconsideration within fifteen (15) days from receipt thereof. Based on the records, BIR-RR # 8- Makati City, Legal Division received the same August 13,2015. Hence, respondent had until August 28,2015 to file her comment.

CTA CASE NO. 8635

On September 9, 2015, the Judicial Records Division issued a Records Verification Report stating that respondent failed to file a comment as of that date.

After a second look and careful examination of the ICP A Report, together with petitioner's supporting documents, the Court finds the instant Motion partly meritorious.

The Court-commissioned ICP A summarized the results of its verification of petitioner's claimed CWT 1n the amount of Php15,222,861.59, as follows:

Findings

Exhibit "P-20"

Exhibit

CWT

Creditable Withholding Taxes where

Annex"C"

"P-21.1" to

Php

1,830.00 Certificates of CWT provided were not original "P-21.4" Creditable Withholding Taxes where

Annex "D"

"P-22.1" to 51,278.27 Certificates of CWT provided were claimed twice "P-22.13"

Creditable Withholding Taxes

Supported with Original CWT

Annex"E"

"P-23.1" to 12,095,607.56 Official Receipts provided "P-23.616" With related Income recorded in 2010 Books

Creditable Withholding Taxes

Supported with Original CWT

Annex"F"

"P-24.1" to 388,409.32 Official Receipts provided "P-24.18" With related Income recorded in 2009 Books

Creditable Withholding Taxes

Supported with Original CWT

Annex "G"

"P-25.1" to 4,005.00 Official Receipts not provided "P-25.4" With related Income recorded in 2010 Books

Creditable Withholding Taxes

Supported with Original CWT

CWT partly valid and partly with exception Broken down as follows:

1.

Recorded in 2010 books with related ORs dated 2010 "P-26.1" to 1,159,884.50 2.

Recorded in 2010 books with ORs not yet provided

Annex"H"

80,707.66 3.

Not recorded in 2010 books with ORs not yet provided "P-26.85" 21,692.25 4.

Not recorded in 2010 books with ORs dated 2010 417.% 5.

Recorded in 2009 books with ORs dated 2010 495,641.73 6.

Recorded in 2010 books with ORs dated 2009 780.75 7.

Recorded in 2010 books with ORs dated 2011 585,925.55

Creditable Withholding Taxes

336,680.04 Not supported with CWTs

TOTAL CREDITABLE WITHHOLDING TAXES

Php 15,222,860.59 The foregoing shows that out of the claimed Php15,222,860.59, CWT in the amounts of Php1,830.00, Php51,278.27 and Php336,680.04 (under items a, band g of the Findings) are not properly supported with Certificates of Creditable Tax Withheld at Source (BIR Form No. 2307), and should be disallowed. Thus, petitioner complied with the third requisite of proving the fact of withholding but only to the extent of Php14,833,072.69, computed as follows: Amount of claimed CWT

Php

15,222,861.00

Less: Disallowances

CWT supported by certificates which are not original copies 1,830.00

AMENDED DECISION

CTA CASE NO. 8635

PageS of13

CWT certificates which were claimed twice CWT not supported with certificates

CWT PROPERLY SUPPORTED WITH CERTIFICATES

51,278.27 336,680.04

Php

14,833,07269 With regard to the second requisite of establishing that the income payments related to the claimed CWT were declared in petitioner's ITR, the Summary of Creditable Withholding Tax6 for the year 2010 shows that the claimed CWTof Php15,222,860.59 pertains to income payments in the amount of Php119,394,047.81, which is lower by Php172,993.19 when compared with the Php119,567,041.00 operating income reflected in petitioner's ITR for the same year. The ICP A reconciled the discrepancy as follows:

Exhibit "P-20"

Amount

Total Income Reported in 2010 ITR

Php 119,567,041.00

Add/(Deduct):

Income/Collections not subject to withholding taxes

Annex "I"

(7,736,531.81) Income accrued in 2010

Annex "J"

7,340,752.15 Unsupported CWTs (for collection)

Annex"K"

(3,424,748.82) 2010 Income uncollected as of Dec. 31, 2010

Annex"L"

(3,191,046.54) Collection of prior years' income with CWT in 2010

Annex"M"

5,773,298.27 2010 CWTs claimed twice

Annex"N"

986,765.27 With 2010 CWTs recorded as other income in 2010

Annex"O"

42,000.00 Other items

Annex"P"

36,518.29 Net amount (172,993.19)

TOTAL INCOME IN 2010 CWT

Php 119,394,047.81 Based on the above reconciliation schedule, certain income items were deducted from the Php119,567,041.00 gross operating income per ITR, indicating that these were reported in petitioner's 2010 ITR but do not form part of petitioner's claim, thus, the same shall no longer be discussed, namely:

Exhibit "P-20"

Amount

Income/Collections not subject to withholding taxes

Annex "I"

(Php 7,736,531.81) Unsupported CWT (for collection)

Annex"K"

(3,424,748.82) 2010 Income uncollected as of Dec. 31, 2010

Annex"L"

(3,191,046.54) However, the Court finds it necessary to examine the income items which were added to the Php119,567,041.00 gross operating income per ITR because these were reflected in the certificates but were not reported in petitioner's 2010 ITR, to wit:

Exhibit "P-20"

Amount

Income accrued in 2010

Annex "J"

Php 7,340,752.15 Collection of prior years' income with CWT in 2010

Annex"M"

5,773,298.27 2010 CWT claimed twice

Annex"N"

986,765.27 With 2010 CWT recorded as other income in 2010

Annex"O"

42,000.00 Other items

Annex"P"

36,518.29

CTA CASE NO. 8635

With reference to the reconciling item of Php7,340,752.15, a perusal of petitioner's Schedule of Accrued Income for 20107 shows that the same pertains to various reversing entries for accruals of management/ marketing fees and rental income. Considering that the amount of Php7,340,752.15 was reflected in the CWT certificates and petitioner failed to establish that it reported the same in its 2010 ITR or prior years, the corresponding CWT in the amount of Php632,253.43, as computed below, should be disallowed:

Amount

Rate

EWT

Reversal Entry - to correct PJ10844 - adjustment on rental income of Regus Inc. 1/1/2010

JV50

Php

64,134.00

for Dec/09 (PJ10903)

adjustment Dec/09-Nov /10 rental income from Regus Inc, based on restructured 12/31/2010

RJ332

4,614,594.00 lease; efffective Dec/09 Reversal Entry - adjustment on rental income of Innove Communication 1/1/2010

JV27

(29,806.45)

01/01/10-01/14/10 (PJ10837)

adjustment on rental income of Innove 12/31/2010

JV1438

39,672.40

Communication 1/01/11-1/14/11

Rental Income

4,688,593.95 5% Php 234,429.70 Project~anagement/~arketingFees 2,652,158.20 15% 397,823.73

TOTAL

Php 7,340,752.15 Php 632,253.43 As to the reconciling item of Php5,773,298.27, the ICP A reported that this amount represents income earned in the year 2009 but was only collected and consequently subjected to withholding tax during 2010.8 However, other than its ITR, petitioner failed to submit its audited financial statements, general ledger and other related documents for the year 2009 to aid the Court in verifying if the gross income of Php5,773,298.27 was actually declared by petitioner in its 2009 ITR. Thus, the Court shall now determine the related CWT that should be disallowed.

Records show that the Php5,773,298.28 income payments were included in the Php11,818,918.49 income payments received by petitioner for which CWT in the amount of Php1,772,837.78 was actually withheld, detailed as follows9:

Payor/Withholding Agent

Income

2010 2009

Payments

Income

Income

CWT

PHILA~LIFE TOWER ~ANAGE~ENT CORP

Php3,980,663.87 Php1,626,203.86 Php2,354,460.01 Php597,099.58

PHILPLANS FIRST INC

PHIL~LIFE TOWER CONDO~INIU~ CORP

THE PHIL. ~ERICAN & GENERAL INSURANCE CO. THE PHIL. A~ERICAN & GENERAL INSURANCE CO. THE PHIL. A~ERICAN & GENERAL INSURANCE CO. THE PHIL. A~ERICAN & GENERAL INSURANCE CO. 7 Exhibit "P-20;" Annex "J."

s Exhibit "P-20," pp. 8-9; Annex "M." 9 Exhibit "P-20;" Annex "M."

225,000.00 709,347.33 1,140,432.60 665,565.60 313,776.80 244,620.43 - 225,000.00 33,750.00 249,212.00 460,135.33 106,402.10 - 1,140,432.60 171,064.89 - 665,565.60 99,834.84 - 313,776.80 47,066.53 - 244,620.43 36,693.06

CT A CASE NO. 8635

The amount composing the CWT of Phpl,772,837.78 can be individually traced to the ICPA' s previously summarized classification of CWT, viz.:

Findings

Exhibit "P-20"

CWT

CWT supported by original certificates and official receipts and the related income was recorded in 2009 Books

PHILPLANS FIRST INC

Php

33,750.00 THE PHIL. AMERICAN & GENERAL INSURANCE CO.

Annex"F"

171,064.89 THE PHIL. AMERICAN & GENERAL INSURANCE CO. 99,834.84 THE PHIL. AMERICAN & GENERAL INSURANCE CO. 47,066.53 THE PHIL. AMERICAN & GENERAL INSURANCE CO. 36,693.06 subtotal 388,409.32 CWT supported by original certificates and official receipts and the related Annex"H," income was recorded in 2010 Books

PHILAMLIFE TOWER MANAGEMENT CORP

(included in 243,930.58 THE PHIL. AMERICAN & GENERAL INSURANCE CO. Item No.1) 625,530.65 subtotal 869,461.23 CWT supported by original certificates, without official receipts and income Annex"H," payments not recorded in 2010 Books (included in

PHILAMLIFE TOWER CONDOMINIUM CORP

Item No.3) 19,625.50 subtotal 19,625.50 CWT supported by original certificates and official receipts but the related income was recorded in 2009 Books Annex"H,"

PHILAMLIFE TOWER MANAGEMENT CORP

(included in 353,169.00

PHILAMLIFE TOWER CONDOMINIUM CORP

Item No.5) 86,776.60 THE PHIL. AMERICAN & GENERAL INSURANCE CO. 55,396.13 subtotal 495,341.73

TOTAL

Php 1,772,837.78 Out of the Phpl,772,837.78 CWT, the amounts of Php388,409.32 Phpl9,625.50 and Php495,341.73 totalling Php903,376.55 shall be denied, as petitioner failed to establish that it declared the related income payments of Php5,773,298.27 in its prior year's ITR. With reference to the reconciling income of Php986,765.27, the corresponding CWT in the amount of Php51,278.2710 has already been disallowed earlier for having been claimed twice by petitioner. Anent the reconciling amount of Php42,000.00 with the related CWT of Php6,300.oon, the ICPA stated that this refers to income payments which were included under petitioner's other taxable income in the ITR. However, only the following income payments of Php28,000.00 with the related CWT of Php4,200.00 were traced to petitioner's generalledger12 and ITR13 for taxable year 2010: 1o Exhibit "P-20;" Annex "N."

n Exhibit "P-20;" Annex "0."

erA CASE NO. 8635

Payor/Withholding Agent

Income

CWT

OR No.

Exh. No. of Pcty_ment

Certificate

PHILAM TOWER REALTY CORPORATION

Php

3,500.00

Php

525.00 8416 "P-26.17"

PHILAMLIFE TOWER CONDOMINIUM CORP

3,500.00 525.00 8415 "P-26.19"

PHILAMLIFE TOWER CONDOMINIUM CORP

3,500.00 525.00 8414 "P-26.26"

PHILAMLIFE TOWER CONDOMINIUM CORP

3,500.00 525.00 8567 "P-26.36"

PHILAMLIFE TOWER MANAGEMENT CORP

3,500.00 525.00 8566 "P-26.38"

PHILAMLIFE TOWER MANAGEMENT CORP

3,500.00 525.00 8670 "P-23.553"

PHILAMLIFE TOWER MANAGEMENT CORP

3,500.00 525.00 8672 "P-26.71"

PHILAMLIFE TOWER MANAGEMENT CORP

3,500.00 525.00 8671 "P-26.73"

TOTAL

Php

28,000.00 Php 4,200.00 Thus, the CWT of Php2,100.00 (Php6,300.00 less Php4,200.00) related to the untraced income payments of Phpl4,000.00 (Php42,000.00 less Php28,000.00) shall be disallowed. Lastly, as to the reconciling amount of Php36,518.29 with the related CWT of Php2,052.30, the same pertains to the difference in the income payments, as reflected in the certificates and as recorded in petitioner's books, viz.:

Income Payment

CWTRelated

CWTper

to the Diff. in

Certificate

Per Certificate

Per Books

Difference

Income

Payment

BNPPARIBAS

Php

147.00

Php

2,940.00

Php

-

Php

2,940.00 Php 147.00

CHARTIS PHILIPPINES

55,241.28 368,175.15 365,863.81 2,311.34 346.80

INSURANCE COMPANY

KUMON PHILIPPINES INC

615.00 12,300.00 - 12,300.00 615.00

NOKIA PHILIPPINES INC

1,890.00 37,800.00 36,000.00 1,800.00 90.00

NOKIA PHILIPPINES INC

2,439.52 48,790.43 46,990.43 1,800.00 90.00

NOKIA PHILIPPINES INC

1,890.00 37,800.00 36,000.00 1,800.00 90.00

NOKIA SIEMENS NETWORKS

945.00 18,900.00 18,000.00 900.00 45.00

PHILIPPINES INC

NOKIA SIEMENS NETWORKS

945.00 18,900.00 18,000.00 900.00 45.00

PHILIPPINES INC

NOKIA SIEMENS NETWORKS

315.00 6,300.00 6,000.00 300.00 15.00

PHILIPPINES INC

NOKIA SIEMENS NETWORKS

630.00 12,600.00 12,000.00 600.00 30.00

PHILIPPINES INC

SUN MIRCORSYSTEM

538.50 10,770.00 10,770.00 538.50

PHILIPPINES INC

-

Rounding of Difference

- - - (3.05)

TOTAL

Php 65,596.30 Php 575,275.58 Php538,854.24 Php 36,418.29 Ph_p2,052.30 Of the Php2,052.30 CWT related to the Php36,418.29 discrepancy in income payments, the amount of Php615.00 has already been disallowed for not being supported by original copies of certificates. Hence, only the remaining CWT in the amount of Php1,437.30 shall be disallowed for petitioner's failure to prove that it declared the corresponding income payments in its ITR.

AMENDED DECISION

CTA CASE NO. 8635 Page9 o£13 In sum, out of the total CWT of Php15,222,861.00, only the amount of Php13,293,905.41, as computed below, was duly supported with certificates and the related income formed part of the taxable income reflected in petitioner's 2010 Annual ITR: Amount of claimed CWT Php 15,222,861.00

Less: Disallowances

CWT supported by certificates which are not original co_pies 1,830.00 CWT certificates which were claimed twice 51,278.27 CWT not supported by certificates 336,680.04 CWT pertaining to the reversing entries for accruals of management/ marketing fees and rental income 632,253.43 CWT pertaining to the P5,773,298.27 income payments collected in 2010 but allegedly reported in the 2009 ITR 903,376.55 CWT pertaining to petitioner's Other Income which were not traced to the general led_g_er and ITR for 2010 2,100.00 CWT related to the difference in the income payments as reflected per certificates and as recorded in petitioner's books 1,437.30

PROPERLY SUBSTANTIATED CWf

Php 13,293,905.41 However, records reveal that petitioner failed to substantiate its prior year's excess credits of Php43,223,634.0014. It bears stressing that the subject claim pertains to excess tax credits, i.e., undiminished by any income tax liability. In this regard, petitioner must prove that, other than the claimed amount of Php15,222,861.00, it had enough prior years' excess credits to cover its declared income tax liability for taxable year 2010 in the amount of Php12,681,617.8015. A mere allegation that it has prior year's excess credits in its Annual ITR will not suffice.

Relevantly, in the case of Commissioner of Internal Revenue v. Nissan Motor Philippines, Inc.16, the Court En Bane ruled that there was a need for petitioner Nissan Motor Phils., Inc. to substantiate its prior year's excess credit because it formed part of its claimed income tax overpayment reflected in its final adjustment return, viz.: By asserting that it is not required to substantiate its prior year's excess tax credits, Nissan Motor in effect admits the finding of the Court on Division that it failed to substantiate the same. It may have lost sight of the fact that its Petition for Review in C.T.A. CASE No. 6622 is a judicial claim for refund which partakes of the nature of an exemption which is strictly construed against the claimant. It is well-settled that the claimant has the burden of proof to establish the factual basis of its claim for refund and the failure to discharge said burden is fatal to its claim. Nissan Motor, being the claimant, is duty- 14 Exhibit "P-3," Line 30A.

1s Exhibit "P-3," Line 29.

CT A CASE NO. 8635 bound to prove its entitlement to the entire amount of its claim for refund.

Secondly, contrary to what Nissan Motor wants this court to believe that there is no need to substantiate its prior year's excess credits, the Supreme Court had ruled that if the claim for refund is based on the taxpayer's final adjustment tax return, said claim should not be treated as a claim for refund of overpaid withholding taxes per se, thus: The petitioner corporation is not claiming a refund of overpaid withholding taxes, per se. It is asking for the recovery of the sum of [Php]82,751.91, the refundable or creditable amount determined upon the petitioner corporation's filing of its final adjustment return on or before 15 April1982 when its tax liability for the year 1981 fell due. The distinction is essential in the resolution of this case for it spells the difference between being barred by prescription and entitlement to refund. (Emphasis supplied) In the above-quoted decision, the Supreme Court categorically made a distinction between a claim for refund of overpaid withholding taxes per se and a claim for refund of the refundable or creditable amount reflected on the taxpayer's final adjustment return. Nissan Motor's claim for refund is of the latter type, that is, based on the refundable amount indicated on Nissan Motor's final adjustment return for the taxable year 2000. A component of the refundable amount reflected on its final adjustment return is its prior year's excess credits of [Php ]478,645.00. The other components are Nissan Motor's Minimum Corporate Income Tax (MCIT) amounting to [Php]3,958,694.00 and the total amount of withheld taxes for the taxable year 2000 amounting to [Php ]8,656,236.00. These components are shown on Nissan Motor's Annual Income Tax Return as follows:

Aggregate Income Tax Due

Less:

Tax Credits/Overpayment

Prior Year's Excess Credits

XXX

XXX XXX

XXX XXX XXX

Creditable Tax Withheld per

BIR Form No. 2307 for the

Fourth Quarter

Total Tax Credits/Payments

Tax Payable/ (Overpayment)

[Php] 3,958,694.00 [Php ]478,645.00 8,656,236.00 9,134,881.00 ([Php]5,176,187.00) It is undeniable that Nissan Motor's prior year's excess credits formed part of its Total Tax Credits/Payments amounting to [Php]9,134,881.00 that was used or applied to cover its MCIT

AMENDED DECISION

CTA CASE NO. 8635

Pagell of13

liability for the taxable year 2000 and that the Tax Overpayment of [Php]5,176,187.00 resulted from its

Total

Tax

Credits/Payments less its MCIT liability. Cleary, its prior year's excess credit is a part of Nissan Motor's Tax Overpayment reflected on its Annual Income Tax Return. In one case, the Supreme Court had explained that 'money is fungible' and the amount to be applied against the income tax due in the final adjustment return of petitioner may be taken from its excess credits in a prior year or from those withheld in the current year or from both. This emphasizes that a Tax Overpayment is composed of the taxpayer's prior year's credits, current year's tax payments, creditable taxes withheld for the current year and even foreign tax credits (if applicable). It is therefore necessary to prove or substantiate each and every component of the Total Tax Credits/Payment reflected on Nissan Motor's final adjustment return, including its prior year's excess tax credits, because ultimately the remaining balance of the Total Tax Credits/Payments after deducting its MCIT liability becomes the Tax Overpayment which is precisely the subject of Nissan Motor's claim for refund in C.T.A. CASE No. 6622. Nissan Motor failed to substantiate its prior year's excess tax credits, thus, it failed to meet the burden of proof required in order to establish the factual basis of its claim for refund insofar as its prior year's excess credits in the amount of [Php ]478,645.00 is concerned .... " [Emphases ours] Applying the foregoing to the case at bar and inasmuch as petitioner failed to substantiate its prior year excess credits of Php43,223,634.00, the substantiated CWT of Php13,293,905.41 shall be applied against its income tax liability for CY 2010 in the amount of Php12,681,617.8017. Therefore, petitioner's refundable excess CWT for taxable year 2010 amounted only to Php612.287.61, computed as follows:

Income Tax Due

Php 12,681,617.80

Less: Properly Substantiated CWT

(13,293,905.41)

REFUNDABLE EXCESS CWT

(Php 612,287.61) In view of the foregoing, petitioner's Motion for Reconsideration is hereby PARTIALLY GRANTED. Accordingly, the dispositive portion of the Decision promulgated on July 13, 2015 is hereby modified to read as follows:

CTA CASE NO. 8635

WHEREFORE, premises considered, the Petition for Review, filed by petitioner Philam Properties Corporation, claiming for a refund or issuance of a TCC of its excess/ unutilized creditable withholding taxes amounting to

Fifteen Million Two Hundred Twenty-Two Thousand Eight

Hundred Sixty One Pesos (Php15,222,861.00) for the period starting from January 1 to December 31, 2010, is hereby PARTIALLY GRANTED. Accordingly, respondent is hereby ORDERED TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the amount of Six

Hundred Twelve Thousand Two Hundred Eighty Seven

and 61/100 Pesos (Php612,287.61) representing petitioner's unutilized excess creditable withholding taxes for taxable year 2010.

WE CONCUR:

LOVELL ~UTISTA

Assoc~t:;~stice ..J ~· QM.~ MA. BELEN M. RINGPIS-LIBAN As soda te Justice

CTA CASE NO. 8635

ATTESTATION

I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division.

LOVELL . BAUTISTA

Associate Justice

Chairperson

CERTIFICATION

Pursuant to Section 13 of Article VIII of the Constitution and the Division's Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division.

Presiding Justice