The Court of Tax Appeals (CTA) has dismissed for lack of jurisdiction the petition of a Mindanao electric cooperative which sought to cancel the P23.5 million income tax assessment for 2018 issued by the Bureau of Internal Revenue (BIR).
Dismissed was the petition filed by Bukidnon II Electric Cooperative, Inc. (BUSECO) in a decision written by Associate Justice Ma. Belen M. Ringpis-Liban.
The tax court noted that the petition sought to nullify and cancel the Formal Letter of Demand (FLD) and Final Assessment Notice (FAN) dated Dec. 3, 2021 issued by Revenue Region No. 16 in Cagayan de Oro City and also the income tax assessment of P23,509,690.98 for taxable year 2018.
It said that "petitioner (BUSECO) erred in appealing the letter as respondent’s final decision.”
“Consequently, since petitioner erred in construing the reply letter dated Jan. 18, 2022 issued by Regional Director Emir U. Abutazil as a final decision of respondent (BIR) on its protest, this Court has no recourse but to dismiss the case outright for lack of jurisdiction,” the tax court declared.
In dismissing the petition, the tax court reminded that Republic Act (RA) No. 1125, the CTA Act, states that the tax court shall exercise jurisdiction over: “Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue.”
It pointed out that “the foregoing letter would show that the same cannot be considered as a ‘decision’ on the protest of the taxpayer against the subject tax assessment or an FDDA (Final Decision on Disputed Assessment).”
"Nowhere does it state in clear and unequivocal language that such letter already constitutes respondent’s final decision of the disputed assessment, as required under Section 3.1.5 of RR (Revenue Regulations) No. 12-99, as amended,” it said.
It cited that Section 3.1.5 of RR No. 12-99, as amended, concerning FDDA states: “The decision of the Commissioner or his duly authorized representative shall state the (i) facts, the applicable laws, rules and regulations, or jurisprudence on which such decision is based, otherwise, the decision shall be void, and (ii) that the same is his [or her] final decision.”
"Wherefore, premises considered, the Petition for Review is dismissed on jurisdictional grounds," the CTA ruled.