BIR loses P1.6 billion tax case

Published October 6, 2019, 12:49 PM

by Rica Arevalo

By Jun Ramirez

The Court of Tax Appeals (CTA) has canceled the more than P1.6 billion tax liabilities slapped by the Bureau of Internal Revenue (BIR) against a high-end condominium developer due to “substantial irregularities” in the serving of the assessment notices by the former.

Court of Tax Appeals (MANILA BULLETIN)
Court of Tax Appeals (MANILA BULLETIN)

In a 31-page resolution, the court’s Second Division stated Fort 1 Global City Center of Fort Bonifacio, Taguig City was not given due process to answer the tax assessments.

It noted that the revenue officers wrongly gave the preliminary and final assessment notices to the security guards of the company.

It said the BIR failed to present evidence during the trial that the assessment letters were received by the duly authorized representatives of the taxpayer as mandated by the Tax Code.

Hence, it said the BIR “failed to strictly comply with the requirements of the laws, regulations and jurisprudence.”

The assessments covered income, value-added, one-time transaction and documentary stamp taxes for the years 2009 and 2012.