Davao firm’s tax appeal denied

Davao City - The Court of Tax Appeals (CTA) has denied the petition of Valhalla Properties Limited (VPL) to compel the Davao City Hall return “erroneously” collected business tax in 2011. VPL of Barangay Sasa, which is engaged in the sale and transfer of shares of stocks, elevated the case to the tax court after the Davao City Regional Trial Court upheld the tax assessment imposed by the local treasurer’s office. The firm paid in protest a total of P655,000 out of its dividend and interest income of P238 million for the two quarters of 2010. The tax court’s Second Division, in its 20-page decision said VPL was a non-bank financial intermediary or an investment company by virtue of money placements in San Miguel Corporation. (Jun Ramirez)