The Court of Tax Appeals (CTA) has declared "final, executory, and demandable" the P717.7 million deficiency taxes of UP North Property Holdings, Inc. for 2009 assessed by the Bureau of Internal Revenue (BIR) in 2018.

In a decision issued by its second division last June 25, the CTA ruled that "the FDDA (Final Decision on Disputed Assessment) dated Feb. 1, 2018 has become final and unappealable due petitioner's (UP North Property) failure to file a valid administrative protest before the CIR (Commissioner of Internal Revenue), or to elevate the same to this Court within 30 days from receipt thereof."

"Thus, the validity and correctness of the assessment may no longer be ruled upon by this Court in the instant Petition," the CA ruled.

The decision was written by Associate Justice Maria Rowena Modesto-San Pedro with the concurrence of Associate Justice Corazon G. Ferrer-Flores. Under the rules, the second division ruling can still be appealed to the CTA as a full court.

UP North Property is a firm engaged primarily to develop, invest, own, acquire, lease, hold, mortgage, administer, or otherwise deal with commercial, residential, industrial or agricultural lands, buildings, structures, or apertures, or in any other profitable business enterprise, venture, or establishment.

The BIR issued an FDDA which assessed UP North Property P717.78 million for alleged deficiency income tax, value added tax (VAT), expanding withholding tax (EWT), documentary stamp tax (DST), and compromise penalties for taxable year 2009.

In its petition filed on Nov. 8, 2019, the firm sought the cancellation of the FDDA for allegedly being void.

It claimed that the Final Assessment Notice (FAN) issued by the BIR did not state the law and facts on which it was made, and the deficiencies found against it have no factual and legal bases.

In its decision, the CTA disagreed as it affirmed that the FAN and FDDA duly state the factual and legal bases of the assessments made against UP North Property Holdings. 

It pointed out that the Details of Discrepancies stated the basis used by the BIR in its assessment, with each assessment narrating the type of reconciliation, documents, or specific provision of the Tax Code or regulations relied upon.

At the same time, the CTA said that the FDDA has already attained finality as UP North Property Holdings failed to file a valid motion for reconsideration within the prescribed time.

"We must emphasize that as a general rule, there is a presumption of administrative regularity and that the tax assessments made by tax examiners are correct and made in good faith. To simply ask the Commissioner of Internal Revenue (CIR) to review the same protest and all the documents already considered by the regional director goes against such presumption of regularity," the court said.

"Accordingly, premises considered, the Petition for Review is hereby dismissed given that the BIR's Final Assessment Notice, dated April 11, 2013, Final Decision on Disputed Assessment, dated Feb. 1, 2018, and Decision, dated Sept. 26, 2019, assessing petitioner for deficiency income tax, VAT, EWT, DST and compromise penalty in the aggregate amount of P717,786,038.34, including increments, for the taxable year 2009, have already become final, executory, and demandable," the dispositive portion of the decision stated.