By: Vince F. Nonato
MANILA — The Philippine Deposit Insurance Corp. has settled its tax dispute with the Bureau of Internal Revenue, leading to the withdrawal of a case pending before the Court of Tax Appeals.
In a July 3 order released on Tuesday, the CTA Second Division granted the joint motion to withdraw filed by PDIC and the BIR, after the former opted to pay P200 million as “full settlement” of its value-added tax liabilities for the year 2009. This also covered related interests, penalties and surcharges.
“The Joint Motion to Withdraw the instant petition for review is hereby granted. Accordingly, this case is withdrawn and considered closed and terminated,” read the one-page order signed by Associate Justices Juanito C. Castañeda Jr., Caesar A. Casanova and Catherine T. Manahan.
The civil case was already at the trial stage when it was terminated, with PDIC presenting its rebuttal to the evidence presented by the BIR in its defense.
PDIC was prompted to file the petition for review on Aug. 12, 2015 and ask the tax court to stop the BIR from collecting a deficiency VAT of P1.4 billion. On Aug. 17, 2015, the deadline for PDIC to settle its liabilities before its assets are seized, the CTA issued a status quo ante order pending resolution of its motion for suspension of collection of tax.
On Sept. 28, 2015, the motion for suspension of collection of tax was granted, which continued to halt the BIR’s attempt to collect the tax dues. Afterwards, the case moved to trial.
PDIC has yet to respond to requests for comment on this development.
PDIC and BIR had a long-standing dispute on whether it should be assessed the VAT like private non-life insurers. The government instrumentality is mandated to provide insurance coverage to protect the depositing public and maintain stability in the financial system. The maximum coverage is P500,000 per depositor. SFM
(Article and Image from business.inquirer.net)