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A contractor in Pasig City has been ordered to settle a P9-million tax debt.

MANILA – The Court of Tax Appeals (CTA) has dismissed an independent contracting firm’s petition challenging the shortfall tax sought by Pasig City’s local government as “without merit.”

The CTA Second Division denied Service Resources Inc.’s petition after the Pasig City Treasurer’s Office gave the company a notice in 2012 for under-declaring gross sales from 2008 to 2010.

Pasig issued a bill for PHP9.45 million in unpaid taxes to the corporation, which provides people management services countrywide.

The case was then heard by Branch 67 of the Pasig Regional Trial Court, which refused Service Resources’ petition, requiring the CTA to hear the issue.

The firm claimed that the assessment encompassed earnings earned from its branch offices outside of Pasig and that sales in a taxpayer’s branch offices must be paid to the city or municipality where the office is located, according to the Local Government Code.

The CTA, on the other hand, stated in its June 3 judgment that the firm “failed to file a timely appeal” within the time limit set by law for the city treasurer to rule on its objection and that as a result, the city’s notification “becomes conclusive and unappealable.”

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