NextGen Day

MANILA, Philippines — The Court of Tax Appeals (CTA) has upheld a Makati court’s judgment to dismiss a local government assessment of PHP65.73 million against a holding firm for alleged deficient taxes and charges between 2011 and 2013.

The tax court’s Third Division denied the Makati City government’s petition for review against DMCI Holdings Inc. for lack of merit in an 18-page decision written by Associate Justice Ma. Belen M. Ringpis-Liban on February 10 and published online Thursday, and affirmed the Makati Regional Trial Court (RTC) Branch 146’s decision on the case on Sept. 5, 2019.

Under the section of the Revised Makati Revenue Code (RMRC) invoked by the city in subjecting DMCI Holdings to taxes, the CTA found that it “cannot be classified as a bank or other financial institution.”

DMCI Holdings said that its primary business was holding shares of stock in its affiliates and subsidiaries in order to control them.

The municipal government argued that the firm applied as a “holding company” in its business permits and license and was classed as such and that as a holding company, it was subject to RMRC clause 3A.02(h).

According to the city, a holding corporation is not required to be a service contractor or an operator or owner of banks and other financial institutions to be subject to the RMRC.

The tax court, in ruling against the Makati City government, stated that the power of local government units (LGUs) is derived from sections of the Local Government Code that limit LGUs’ taxing powers.

A holding corporation must “come under the scope of banks and financial institutions,” according to the Local Government Code.

“It is not taxed under the abovementioned provisions otherwise,” it noted.

Associate Justices Erlinda P. Uy and Maria Rowena Modesto-San Pedro voted in favor of the ruling.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---