CTA refuses to adjudicate dispute involving government offices

The Court of Tax Appeals (CTA) has turned down the petition of a government-owned mining company to nullify the deficiency tax assessment imposed by the Bureau of Internal Revenue (BIR).

Court of Tax Appeals (MANILA BULLETIN)

Court of Tax Appeals (MANILA BULLETIN)

Instead, the court en banc instructed the Philippine Mining and Development Corporation (PMDC) to go either to the Department of Justice (DOJ) or the Office of the Solicitor General (OSJ) to seek judgment.

The court explained that any dispute between or among government offices, including state-owned companies, should be adjudicated by the DOJ, or the OSG as prescribed by Presidential Decree No. 242.

President Marcos issued the decree to facilitate the resolution of conflict arising among government agencies under the executive branch.

PMDC brought the case to the tax court after the BIR issued preliminary and final assessment notices on its alleged deficiency income and value-added taxes for the year 2010.

“There is no compelling reason to disturb the findings of the court in division as it is supported by jurisprudence and evidence on record,” said Associate Justice Cielito Mindaro-Grulla who wrote the 19-page verdict.