BIR loses tax case against online brokerage COL Financial

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Jacinto Ng (L), Asia United Bank (AUB) Corp chairman, leads the ceremonial ringing of the bell at the Philippine Stock Exchange (PSE), as Anita Ng (2nd L), PSE Chairman Jose Pardo (2nd R) and PSE official Vivian Yuchengco look on, in a financial district of Makati city, metro Manila May 17, 2013. Philippine lender Asia United Bank Corp jumped as much as 9.5 percent on its market debut on Friday after an oversubscribed public offer, the first listing since the country won investment rating upgrades from two agencies this year. (MNS photo)

Jacinto Ng (L), Asia United Bank (AUB) Corp chairman, leads the ceremonial ringing of the bell at the Philippine Stock Exchange (PSE), as Anita Ng (2nd L), PSE Chairman Jose Pardo (2nd R) and PSE official Vivian Yuchengco look on, in a financial district of Makati city, metro Manila May 17, 2013. Philippine lender Asia United Bank Corp jumped as much as 9.5 percent on its market debut on Friday after an oversubscribed public offer, the first listing since the country won investment rating upgrades from two agencies this year. (MNS photo)

MANILA (Mabuhay) -– The Bureau of Internal Revenue (BIR) has lost a tax case against COL Financial Group Inc.

In a disclosure to the Philippine Stock Exchange, the leading online brokerage said the Court of Tax Appeals ordered the BIR to issue COL a tax credit certificate (TCC) amounting to P8.96 million.

In April 2012, COL filed a petition for review to preserve its right to claim a tax refund or secure a TCC for the additional income tax paid under protest for 2009.

The case stemmed from the BIR’s issuance of Revenue Regulation No. 2-2010 and Revenue Memorandum Circular No. 16-2010, effectively amending Section 7 of BIR Revenue Regulation No. 16-2008 with respect to the determination of the optional standard deduction (OSD) of general professional partnerships and their partners, as well as the manner and period for making the election to claim OSD in the income tax returns. The rules were made to apply retroactively.

“The company takes the position that RR 2-2010 and RMC 16-2010 should be given prospective effect,” the listed firm said.

COL paid the additional income tax to avoid the imposition of penalties should the retroactive effect of the said issuances be upheld.

The company’s profit slipped to P303.60 million last year from the P305.90 million reported in 2012 in the absence of a tax benefit, even as Philippine operations registered a record year despite the volatility in the stock market. (MNS)

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