CTA orders BIR to refund Watsons P447.1 million in excess taxes

The Court of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to refund P447.11 million to Watsons Personal Care Stores (Philippines), Inc., representing excess and unutilized creditable withholding taxes for taxable year 2020, according to BusinessWorld.

In a 27-page decision promulgated on June 17, the CTA Special Second Division partially granted the company's claim. The ruling stems from Watsons' assertion that it had overpaid its creditable withholding taxes during the covered period, and the BIR had failed to act on its administrative claim for refund or issue a tax credit certificate.

The CTA's decision is final and executory unless appealed to the Supreme Court within 15 days from receipt. The refund amount includes the excess CWT plus a 6% interest per annum from the date of the judicial claim until fully paid, as provided under the National Internal Revenue Code.