outbrain
Close  
WITHHOLDING TAX

CTA orders Comelec to pay P30.6M

/ 01:02 AM January 16, 2017

The Court of Tax Appeals (CTA) has affirmed an order for the Commission on Elections (Comelec) to pay the taxes it did not withhold from its poll technology providers in 2008, although at a reduced rate of P30.65 million.

In an eight-page amended decision dated Jan. 3, the CTA Second Division partially granted the motion for reconsideration against an Aug. 2 decision that pegged its liabilities at P49.08 million.

ADVERTISEMENT

The court continued to reject the Comelec’s contention that it was exempted as a government office.

But it said the tax exemption under Republic Act No. 9369, or the poll automation law, does not include an exemption from the duty to withhold taxes from income payments to its suppliers.

FEATURED STORIES

Yet the Comelec was able to convince the court it was only liable for the basic tax of P30.65 million, and not the interest and penalty.

“The amount of P49,082,867.69 clearly includes the interest and penalty on top of the basic tax due. Accordingly, petitioner must only be liable to pay the basic tax due amounting to P30,645,542.62 and not P49,082,867.69,” the decision read.

The liability arose from the taxes the Comelec should have deducted from its payments to Smartmatic Sahi Technology and Avante International Technology for the lease of vote-counting machines for the 2008 election of the Autonomous Region in Muslim Mindanao.

Justice Juanito C. Castañeda Jr. penned the decision.

Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Commission on Elections, court of tax appeals, Philippine news updates
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.