Tax Court denies PAL tax refund claimThe Court of Tax Appeals (CTA) has rejected the petition of Philippine Airlines (PAL) to get back almost P7 million in excise tax payment for its failure to distinguish low price from reasonable price arising from importation of alcohol and tobacco products in 2008. quality and price.”It said even the BIR had admitted that the importation of the commissary supplies is much cheaper because they have no excise tax component and transportation cost. The court said it was wrong for PAL to equate lower price with reasonable price as mentioned in the Tax Code. It explained that the cheaper price abroad does not make the locally available products’ price unreasonable. The decision stated that reasonable price is not necessarily the lowest price, stressing that “reasonable price is a decision reached jointly between buyers and sellers high enough to cover the cost and a reasonable profit.”

Source: Manila Bulletin October 09, 2016 02:03 UTC