MANILA, Philippines – The Supreme Court (SC) has ordered the Bureau of Internal Revenue (BIR) to refund property developer Fort Bonifacio Development Corp. some P359.65 million that was paid as output value-added tax (VAT) for the first quarter of fiscal year 1997 in connection with its sales and lease of lots in Fort Bonifacio Global City in Taguig City.
In a 17-page decision penned by Associate Justice Mariano Del Castillo dated September 4 but released to the media on Thursday, the high court en banc reversed the July 7, 2006 ruling of the Court of Appeals (CA) that affirmed the Court of Tax Appeals (CTA) in denying Fort Bonifacio Development Corp. the refund it had asked the BIR.
The firm noted that it was entitled to P5.70 billion in transitional input tax credit based on its book value of P71.22 billion as of Sept. 19, 1996. For the 1st quarter of 1997, the firm’s total sales and lease of lots totalled P3.68 billion; the output VAT payable was P368.54 million. BIR paid the output VAT through cash payments totalling P359.65 million, and credited its unutilized input tax credit on purchases of goods and services of P8.88 million.
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