CTA orders Makati to refund P6.8M tax to Metro Pacific holding firm
The Court of Tax Appeals (CTA) has ordered the Makati City treasurer’s office to refund P6.84 million in local business taxes erroneously imposed on Metro Pacific Assets Holdings, Inc. (MPAHI).
In a recent 16-page decision, the court’s 2nd Division reversed the Makati City Regional Trial Court’s (RTC) November 4, 2016 ruling that previously dismissed the refund claim.
The CTA said the city government should not have imposed the tax on the dividend and interest income earned by the holding firm, because it was neither an investment company nor a bank or a financial institution.
Citing the holding firm’s articles of incorporation, the CTA said there was no showing that “any of its activities are covered by the [Bangko Sentral ng Pilipinas] Manual akin to functions pertaining to a financial intermediary.”
“The records of this case do not show that petitioner is an investment company, a bank or other financial intermediary as defined by pertinent regulations,” read the decision penned by Associate Justice Catherine Manahan.