Withholding Agent can apply claim for tax refund

[admin]

The withholding agent has a legal right to file a claim for refund. First, because he is considered a "taxpayer" under the NIRC as he is personally liable for the withholding taxes should it be found to be less than the amount that should have been withheld under the law. Second, as an agent of the taxpayer, his authority to file the necessary income tax return and to remit the tax withheld impliedly includes the authority to file a claim for refund and to bring an action for recovery of such claim (CIR vs. Smart Communications Inc., GR No. 179045-46, August 25, 2010).

While the withholding agent has the right to recover the taxes erroneously or illegally collected, he nevertheless has the obligation to remit the same to the principal taxpayer.