It’s final! Lucio Co and family get P1.6B tax refund
The Court of Tax Appeals (CTA) has upheld a ruling directing the Bureau of Internal Revenue to refund about P1.65 billion to tycoon Lucio Co and his family for the erroneous payment of capital gains taxes in 2012.
The case involved listed Puregold Price Club’s 2012 share-swap acquisition of the Co family’s Kareila Management Corp.
Under the deed of exchange, the Co family agreed to transfer all their Kareila shares to Puregold in exchange for shares of stock in the latter. This effectively raised the family’s ownership of Puregold to 75.8 percent.
The CTA junked BIR’s motion for reconsideration, noting that the share swap transaction was tax-free under section 40 of the National Internal Revenue Code.
The P1.65 billion is broken down as follows (P659.05 million to Lucio, P659.051 million to wife Susan, P164.76 million each to son Ferdinand and daughter Pamela.