CTA grants part of Zuellig Pharma’s tax refund claim


THE Court of Tax Appeals (CTA) has granted part of Zuellig Pharma Corp.’s appeal to refund its excess credit withholding tax (CWT) in the amount of P381.86 million for the fiscal year 2012.

In a 35-page decision dated March 2, the CTA Special Third Division said the firm presented withholding tax certificates to prove its entitlement to the said amount.

“In sum, petitioner (Zuellig Pharma) sufficiently proved its compliance with the requisites for granting a CWT refund but only in the amount of P381.86,” according to the ruling penned by Associate Justice Erlinda P. Uy.

The pharmaceutical firm initially sought a CWT refund worth P467.58 million. The CTA reduced the amount due to some taxes withheld not being supported by documents required by the Bureau of Internal Revenue (BIR).

The commissioner of internal revenue argued that the firm did not prove that it remitted its CWT payment to the BIR, which should void its refund claim.

The tax court disagreed, saying the proof of remittance is not a condition of claiming a CWT refund and that certificates of the withholding tax were enough.

It said a court-commissioned certified public accountant verified the documents presented by the pharmaceutical firm.

Zuellig Pharma engages in manufacturing and selling at wholesale and retail all kinds of drugs and medicines.

“The Supreme Court held that the certificate of creditable tax withheld at source is the competent proof to establish the fact that taxes are withheld,” the tribunal said.

“It bears stressing that the Court of Tax Appeals is a court of record, and party litigants should prove every minute aspect of its case.” — John Victor D. Ordoñez

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