MANILA — The Court of Tax Appeals (CTA) has dismissed a petition filed by Taguig City Mayor Laarni “Lani” Cayetano challenging a lower court ruling that granted a condominium corporation’s claim for a refund of local business taxes erroneously collected in 2016.

In a 16-page decision dated Aug. 25, the CTA Special Third Division affirmed the 2024 ruling of the Taguig Regional Trial Court (RTC) Branch 153 in favor of Serendra Condominium Corporation (SCC).

The RTC had ruled that SCC was entitled to a partial tax credit of PHP2.29 million after finding that the local business taxes (LBT) assessed and collected from the corporation for 2016 were erroneous.

The CTA decision, written by Associate Justice Marian Ivy Reyes-Fajardo, stemmed from two petitions filed by SCC and a separate petition filed by Cayetano and the city government questioning the RTC ruling.

The consolidated cases involved SCC’s claims involving PHP2.29 million in LBT, PHP2.73 million in environmental impact fees (EIF), and PHP150 in business plate or sticker fees.

The RTC found that SCC, as a condominium corporation, was not engaged in business or operated for profit and therefore did not qualify as a “contractor” subject to LBT under the Taguig Revenue Code.

It consequently held that the LBT imposed on and collected from SCC was erroneous and that the corporation was entitled to a refund.

The RTC, however, rejected SCC’s claims involving the EIF and business plate or sticker fee.

The tax court likewise noted that the EIF and business plate fee were not local taxes and therefore fell outside its jurisdiction.

(PNA)