Court of Tax Appeals Denies Ford Philippines’ PHP262 Million Tax Refund Claim

MANILA — The Court of Tax Appeals (CTA) has rejected Ford Group Philippines, Inc.’s request for a PHP262-million tax refund. The manufacturer sought a refund for alleged excess and unutilized creditable withholding taxes for the year 2018.

According to Philippines News Agency, a 23-page decision by Associate Justice Lanee Cui-David dated July 10, the court determined that Ford Philippines did not provide sufficient evidence to support its claim. This ruling follows an initial decision by the Bureau of Internal Revenue (BIR), which also found the documentation provided by Ford insufficient to establish the income source for the claimed taxes in its income tax return.

The court emphasized the importance of compliance with tax law, stating that taxes are vital for government operations and must be implemented stringently. “The burden is on the taxpayer to show that it has strictly complied with the conditions for the grant of the tax refund or credit,” the decision read. The court also highlighted that tax refund actions are regarded as claims for exemptions and must meet rigorous legal and evidential standards.

Ford Philippines’ inability to meet these requirements led to the dismissal of their petition as lacking merit. The decision underscores the judiciary’s role in enforcing tax laws without liberal interpretations, safeguarding government revenue.