Philippine Airlines Wins Court Battle for P1.95 Million Tax Refund

In a significant legal victory, the Court of Tax Appeals (CTA) in Manila has approved a petition from Philippine Airlines (PAL) to reinstate a 2014 decision that awarded the airline a refund of P1.95 million for mistakenly paid excise taxes from 2009. The CTA’s Third Division, in a ruling dated December 19, supported PAL’s argument that the earlier decision had not been implemented. The court rejected the Bureau of Internal Revenue’s (BIR) assertions that PAL had not proven the non-execution of the 2014 decision and that the CTA lacked jurisdiction over the case, classifying it as a civil action not subject to monetary valuation. The CTA affirmed its authority over BIR decisions related to tax assessments, refunds, and penalties under the National Internal Revenue Code. Furthermore, the court clarified that the onus was on the BIR to demonstrate that the decision had been executed, not on PAL to prove otherwise. Consequently, the CTA mandated the BIR to pay PAL the sum of P1,948,175.07.