By JUN RAMIREZ
The real estate company of business tycoon Henry Sy has been granted P63-million tax refund by the Court of Tax Appeals (CTA).
In a 19-page resolution, the full CTA affirmed the decision of its Third Division that Belle Corporation of Mall of Asia, Pasay City was not liable to pay the capital gains tax (CGT) imposed by the Bureau of Internal Revenue (BIR).
The developer of the iconic leisure and tourist destinations like City of Dreams Manila and Tagaytay Highland paid the tax in protest arising from the transfer of Belle Bay City Corporation (BBCC) of its remaining assets to its sister company consisting of parcel of reclaimed lands in Parañaque City by way of liquidating dividends.
The court noted that BBCC had earlier secured a ruling from the BIR that the transfer was not subject to income, creditable withholding and documentary stamp taxes as the deal did not realize gains or loss.
It said such ruling cannot be revoked or applied retroactively under Section 246 of the Tax Code.
Besides, it said the BIR failed to present evidence that the lots transferred by BBCC are capital assets (not used in business), thus not subject to CGT.