Connect with us

Hi, what are you looking for?


CTA rejects manning firm’s P13-M refund claim


THE Court of Tax Appeals has denied Pacific Ocean Manning, Inc.’s appeal to review and set aside its tax liabilities worth P13.04 million allegedly representing its unused input taxes traced to zero-rated sales in 2016.

In a decision dated Nov. 10 and made public on Nov. 17, the CTA Special Third Division ruled that the firm failed to prove it engaged in zero-rated sales in 2016.

“A perusal of the records shows that Pacific Ocean Manning failed to submit in evidence any proof that its foreign clients are not doing business in the Philippines,” Associate Justice Maria Rowena Modesto-San Pedro said in the ruling, citing the country’s revenue code.

It noted that a taxpayer has the burden of proof to show that it complied with mandated conditions for a tax refund.

Under the law, taxpayers that engage with foreign corporations outside the Philippines are entitled to zero-rated sales that do not translate to output tax.

The term “zero-rated sale” must be written on the company’s official invoices.

Sales that qualify for 0% value-added tax (VAT) include services other than processing, manufacturing, or repacking of goods; services performed in the Philippines by VAT-registered persons and sales paid in acceptable foreign currency in line with the central bank’s rules.

The firm provides its clients, usually seafarers, with services that include arranging the procedural requirements when they apply for a job in shipping companies.

The court said the petitioner did not provide evidence to substantiate its services to its client V. Ships UK, Ltd., which the firm said resulted in zero-rated sales.

The manning agency agreement between Pacific Ocean Manning and its client only took effect on July 1, 2016, despite its refund claim covering four quarters of that year.

“There is no way to establish the type and nature of services actually rendered by petitioner to V. Ships UK, Ltd. prior to said effectivity date,” said the tribunal.

“It is thus unnecessary for this court to look into petitioner’s compliance with the other remaining requirements for the claim for unutilized input VAT refund to prosper,” it added. — 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!



REUTERS SINGAPORE — Jollibee Foods Corp, the biggest fast-food operator in the Philippines, is in advanced discussions to sell a minority stake in its...


INDONESIAN lawmakers have passed a contentious criminal code that outlaws extramarital sex and raises penalties on abortions as part of legislation that sparked violent...


REUTERS MUNICH/BERLIN — Former Wirecard executives go on trial on Thursday, two years after the collapse of the payments company that produced Germany’s biggest...


PHILIPPINE STAR/ KRIZ JOHN ROSALES SEOUL — A nationwide strike by South Korean truckers has led nearly 100 petrol stations across the country to...


REUTERS WASHINGTON — Chinese hackers have stolen tens of millions of dollars worth of US COVID relief benefits since 2020, the Secret Service said...


GOLDEN STATUE at the Trocadero square near the Eiffel tower wears a protective mask during the outbreak of the coronavirus disease 2019 in Paris,...

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...


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...


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...


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.