Valenzuela City: The Court of Tax Appeals (CTA) has ordered the Valenzuela City government to refund PHP3.8 million to the North Luzon Expressway Corporation (NLEX) due to erroneously collected taxes from 2012 to 2019.

According to Philippines News Agency, the refund was ordered through a 33-page decision written by Associate Justice Corazon Ferrer-Flores. The amount represents local business tax (LBT) wrongly collected and paid for signage services, as well as the related surcharge, interest, and tax credits during the specified period.

In its decision, the CTA referred to the Local Government Code (LGC) of 1991. This code stipulates that when a contractor operates a branch, sales outlet, or warehouse, the sale recording should take place at that location, and the corresponding business tax should be paid to the municipality or city where it is situated. The court clarified that offices used only as display areas, where no stock or items are stored for sale, do not qualify as branch or sales offices.

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CTA concluded that since there was no evidence to show that the signages or installations in Valenzuela City could be considered a branch or sales office, or a fixed place for business transactions during the subject period, the Valenzuela City government had no valid grounds to levy or collect LBT, including any surcharge and interest, on these signages or installations. The decision was concurred by Associate Justices Ma. Belen Ringpis-Liban and Maria Rowena Modesto-San Pedro.