May 4, 2021 @ 13:47

Kepco sheds tax liabilities as SC keeps honoring settlement with BIR

Kepco Philippines Corporation has continued to be relieved of its tax disputes, as the Supreme Court (SC) dismissed the case concerning its liabilities for 2007 and kept honoring the company’s P260.85-million compromise agreement settling multiple years of dues.

In a 4-page minute resolution on G.R. No. 217695, the SC 3rd Division acknowledged the Bureau of Internal Revenue’s (BIR) certificate of availment dated December 11, 2017, which confirmed the settlement of Kepco’s tax liabilities for the years 2006, 2007 and 2009.

“The compromise settlement between the BIR and Kepco is a supervening event which rendered the case moot and academic,” read the minute resolution signed by Division Clerk of Court Misael Domingo Battung III.

The SC 1st Division, in a July 28, 2020 decision on G.R. No. 225750, already upheld the validity of the same compromise agreement in relation to Kepco’s tax liabilities for the year 2006.

In that earlier case, the compromise agreement was opposed by the Office of the Solicitor-General (OSG), which argued that the criteria under Revenue Regulations (RR) Number 30-2002 were not met and that the BIR arrogated upon itself certain powers of the National Evaluation Board (NEB). The SC rejected the OSG’s opposition.

The government had been going after Kepco for a total of P342.24 million, plus additional interest, fees and surcharges.

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