Cited Laws
TL;DR — Ruling
WHEREFORE, premises considered, the assessments issued by [the CIR] against [UDTI] for taxable year 2005 covering deficiency income tax and value-added tax are CANCELLED for lack of merit, while the deficiency expanded withholding tax assessment is AFFIRMED. Accordingly, [UDTI] is hereby ORDERED TO PAY respondent the amount of SEVEN HUNDRED FIFTY-SIX THOUSAND SEVEN HUNDRED FIFTY-FIVE PESOS AND 60/100 ([PHP] 756,755.
WHEREFORE, premises considered, the assessments issued by [the CIR] against [UDTI] for taxable year 2005 covering deficiency income tax and value-added tax are CANCELLED for lack of merit, while the deficiency expanded withholding tax assessment is AFFIRMED. Accordingly, [UDTI] is hereby ORDERED TO PAY respondent the amount of SEVEN HUNDRED FIFTY-SIX THOUSAND SEVEN HUNDRED FIFTY-FIVE PESOS AND 60/100 ([PHP] 756,755.60) representing basic deficiency expanded withholding tax and the 25% surcharge imposed under Section 248(A)(3) of the NIRC of 1997, as amended: Basic Tax Due [PHP ]605,404.48 Add: 25% Surcharge [PHP ]151,351.12 Total Amount Due [PHP ]756,755.60 In addition, petitioner is hereby ORDERED TO PAY: (a) Deficiency interest at the rate of [20%] per annum on the basic expanded withholding tax computed from January 11, 2006 until December 31, 2017 pursuant to Section 249(B) of the [Tax Code], as amended; [] (b) Delinquency interest at the rate of 20% per annum on the total amount of [PHP] 756,755.60 and on the deficiency interest which accrued as afore-stated in (a), computed from June 5, 2015 until December 31, 2017 pursuant to Section 249(C) of the [Tax Code], as amended; and (c) Delinquency interest at a rate of 12% per annum on the unpaid amount (basic tax plus surcharge plus interests computed in (a) and (b)) from January 1, 2018 until the amount fully paid[,] pursuant to the relevant provision of Republic Act No. 10963[,] more commonly known as the TRAIN Law, which took effect on January 1, 2018. SO ORDERED.