Taguig ordered to refund P5.7-M taxes to Serendra unit owners

CTA turns down sugar trader's P13.4 M tax refund petition - Manila Bulletin
The Court of Tax Appeals (CTA) has ruled in favor of unit owners of upscale Serendra condominium in a tax case against the city government of Taguig.

In a 42-page ruling dated Sept. 10 and penned by Associate Justice Juanito C. CastaƱeda Jr., the CTA’s Second Division ordered the Taguig City government to refund PHP5.7 million that was erroneously or illegally collected from Serendra Condominium Corp. (SCC), an association of the unit owners of Serendra condominiums.
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The SCC members questioned the requirement of the Taguig City government for them to pay the amount before the renewal of their permit to operate in 2013.

The city government imposed the tax, claiming the SCC engaged in business based on the associate dues collected from the unit owners the previous years amounting to PHP43.01 million.

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Aside from the business taxes, the amount also involved a marked increase in the environmental impact fee collected by the city government from the corporation amounting to PHP2.69 million.

The city claimed that it had the authority to collect the taxes under the Local Government Code and the Taguig Revenue Code.

Ruling in favor of the corporation, the CTA said "SCC is not engaged in trade or business and, hence, is not subject to local business tax as well as to business plate/sticker fee”, citing Supreme Court precedents on similar cases.


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