In a case we handled, the Supreme Court (SC) confirmed the entry of the judgment of its resolution affirming with finality the decisions of the Court of Tax Appeals (CTA) and the Regional Trial Court (RTC) of Makati that Makati City does not possess the power to assess local business taxes (LBT) on the dividends received by our client, which is not a bank or a financial institution.
More than six years ago, the City of Makati formally assessed our client, a holding company, with a deficiency in LBT based on the dividend income it received, as reflected in its audited financial statements. The assessment was based on the Revised Makati Revenue Code provision that specifically taxes holding companies.