The Court of Tax Appeals (CTA) has cancelled the P3.7 million tax debts of a medical firm for failure of the Bureau of Internal Revenue (BIR) to send a correct final assessment notice (FAN).
In a 16-page decision, the court's First Division stated that the FAN sent to Ritegroup, Inc. of Ortigas Center, Pasig City did not show the the fixed amount to be paid as prescribed in Section 6 of the Tax Code.
It also said that the assessment notice lacked the date when the taxpayer should remit the tax shortage.
"Ergo, the respondent's (BIR) deficiency tax assessments issued against the petitioner (Ritegroup) are void," said Associate Justice Marie Ivy F. Reyes-Fajardo who wrote the decision.
The assessments covered deficiency income, value added, expanded withholding taxes as well as withholding tax on compensation for the year 2013.