MANILA – The Court of Tax Appeals (CTA) has ordered the Quezon City government to refund erroneously paid local business taxes to Sky Cable Corp. for the second quarter of 2021.
In a 13-page decision dated October 8, the tax court has affirmed the decision of the Quezon City Regional Trial Court (RTC) Branch 104) dated January 20, 2023, and denied for lack of merit the petition for review filed by the QC government.
The case stemmed from a Business Tax Bill, the amount of which was unspecified, issued by Quezon City to the cable television provider for the second quarter of 2021. The firm paid the total amount assessed and issued a corresponding official receipt.
Sky Cable then filed a protest against the assessment with a claim for refund, but the local government unit did not act on it, according to the records of the case.
The firm filed a complaint before the RTC for the cancellation of assessment and for a refund or credit for the erroneously paid taxes.
The RTC decided in favor of Sky Cable, and dismissed the motion for recommendation filed by Quezon City, prompting the local government to file the instant petition for review with the CTA on July 3, 2023.
In its ruling, the CTA said the firm’s claim for refund is not solely based on its allegation of double taxation.
“Respondent (Sky Cable) has already proven that it paid taxes for which it was never actually liable. For the specific purposes of its claim, this is enough to prove that respondent is, indeed, entitled to a refund, regardless of whether it has proven payment of local taxes to other localities,” the tribunal said.
“We see no serious error in the ruling of the RTC and thus no compelling reason to grant the petition (of the QC government).” (PNA)