The Bureau of Internal Revenue (BIR) lost another case it filed against a petroleum dealer after the bureau erroneously sent collection notices and assessment.
This became the basis of the Court of Tax Appeals (CTA) to drop the almost P24 million case against Michael C. Co Say, president of Cosco Petroleum Corporation based in Pili, Camarines Sur.
In a 23-page decision, the CTA First Division Co Saywas not given the chance to answer and protest the assessment.
The resolution stated that the assessment and collection notices were received by an individual who was neither an employe, nor authorized to receive such documents.
Tax laws and regulations stipulate that BIR assessment must be received personally by the concerned taxpayer, or his duly authorized representative.
Besides, Associate Justice Marian Ivy F. Reyes-Fajardo who penned the resolution said the assessment was void as it was done by a revenue officer (RO) not named in the letter of authority (LA) to investigate Co Say.
Revenue laws and regulations require that the LA must the name RO authorized to make the assessment.
The liabilities covered deficiency income tax for 2008.