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The document discusses a tax refund claim made by PLDT for withholding taxes remitted to the BIR for employees it terminated and compensated. The CTA and CA dismissed PLDT's claim because PLDT failed to prove that the separated employees received payment or that taxes were actually withheld. The Supreme Court ruled that for a successful tax refund claim, the taxpayer must: 1) declare the income payments as part of its gross income, and 2) establish the fact of withholding, such as by providing statements showing amounts paid and taxes withheld. The Court affirmed the dismissal, as PLDT did not meet these evidentiary requirements under relevant revenue regulations.
The document discusses a tax refund claim made by PLDT for withholding taxes remitted to the BIR for employees it terminated and compensated. The CTA and CA dismissed PLDT's claim because PLDT failed to prove that the separated employees received payment or that taxes were actually withheld. The Supreme Court ruled that for a successful tax refund claim, the taxpayer must: 1) declare the income payments as part of its gross income, and 2) establish the fact of withholding, such as by providing statements showing amounts paid and taxes withheld. The Court affirmed the dismissal, as PLDT did not meet these evidentiary requirements under relevant revenue regulations.
The document discusses a tax refund claim made by PLDT for withholding taxes remitted to the BIR for employees it terminated and compensated. The CTA and CA dismissed PLDT's claim because PLDT failed to prove that the separated employees received payment or that taxes were actually withheld. The Supreme Court ruled that for a successful tax refund claim, the taxpayer must: 1) declare the income payments as part of its gross income, and 2) establish the fact of withholding, such as by providing statements showing amounts paid and taxes withheld. The Court affirmed the dismissal, as PLDT did not meet these evidentiary requirements under relevant revenue regulations.
employees in compliance with labor law requirements. It deducted from separation pay withholding taxes and remitted the same to BIR. In 1997, it filed a claim for tax refund and CTA contended that petitioner failed to show proof of payment of separation pay and remittance of the alleged with held taxes. CA dismissed the same and PLDT^ assailed the decision arguing against the need for proof that the employees received their separation pay and proffers actually received by terminated employees.
ISSUE: Whether or not the withholding taxes remitted
to the BIR should be refunded for having been erroneously withheld and paid to the latter.
RULING: Tax refunds, like tax exemptions, are
considered strictly against the taxpayer and liberally in favor of the taxing authority, and the taxpayer bears the burden of establishing the factual basis of his claim for a refund. A taxpayer must do two things to be able to successfully make a claim for tax refund: a) declare the income payments it received as part of its gross income and b) establish the fact of withholding. At all events, the alleged newly discovered evidence that PLDT seeks to offer does not suffice to established its claim for refund as it would still have to comply with Revenue Regulation 6-85 by proving that the redundant employees on whose behalf it filed the claim for refund, declared the separation pay received as part of their gross income. The same Revenue Regulation required that the facts of withholding is established by a copy of the statement duly issued by the payor to the payee showing the amount paid and the amount of tax withhold therefrom.
A taxpayer must do two (2) things to be able to be able to
successfully make a claim for the tax refund: 1. Declare the income payment it received as part of its gross income. 2. Establish the fact of withholding.
On this score, the relevant revenue regulations provides as
follows: Sec. 10. Claims for tax credit or refund - claims for tax credit or refund of income tax deducted and withheld on income payments shall be given due course only when it is shown on the return that the income payment received was declared as part of the gross income and the fact of withholding is established by a copy of the statement duly issued by the payer to the payee showing the amount paid and the amount of tax withheld therefrom.
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