Connect with us

Hi, what are you looking for?


CTA affirms ruling denying First Gen Hydro’s tax refund


THE Court of Tax Appeals (CTA) has affirmed its decision that denied First Gen Hydro Power Corp.’s claim for a refund worth P15.95 million allegedly representing its excess value-added tax (VAT) traced to zero-rated sales for the year 2016.

In a 24-page decision on Aug. 18 and made public on Aug. 26, the CTA full court denied the firm’s motion to present additional evidence since it should have presented the same during the trial.

“Its failure to present said evidence is its own negligent act, which the court will not reward by remanding the case,” according to the ruling written by CTA Associate Justice Marian Ivy F. Reyes-Fajardo.

“Every litigation must come to an end and parties cannot be given unbridled license to prove its case anew when its failure to do so was a product of its own negligence.”

The petitioner is a subsidiary of First Gen Corp., a listed company engaged in the power generation business.

First Gen Hydro argued that the tax court made an error in ruling its sales were not zero-rated and sought to present Bureau of Internal Revenue records and other pieces of evidence to support its claim.

The tribunal argued that the subject sales could not be considered zero-rated since they were made before the issuance of certificates of compliance (CoCs) by the Energy Regulatory Commission (ERC).

Under the country’s tax code, zero-rated sales are transactions made by VAT-registered taxpayers that do not result in any output tax.

Taxpayers must also comply with invoicing requirements such as submitting a CoC issued by the ERC mandated by the Electric Power Industry Reform Act of 2001.

“Petitioner (First Gen Hydro) should have argued and proved before the court in division that the foregoing determination by the commissioner of internal revenue (CIR) does not stand,” said the court.

“Petitioner not only failed to offer proof to debunk respondent’s findings, it also failed to pinpoint which of respondent’s findings were not supported by factual or legal bases.” — John Victor D. Ordoñez

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...


Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...


Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...


REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...


Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.