BIR reminds taxpayers to immediately reply to deficiency assessment notices
Published Dec 18, 2018 02:01 pm
By Jun Ramirez
The Bureau of Internal Revenue (BIR) asked taxpayers on Tuesday to promptly answer deficiency assessment notices to avoid losing their right to question such assessments.
BIR
(Manila Bulletin File Photo) Revenue Deputy Commissioner for Operations Arnel Guballa issued the instruction after the Court of Tax Appeals (CTA) turned down the petition of M. Tech Products Philippines of Salcedo Village, Makati, which had sought the cancellation of multi-million-peso deficiency value-added and withholding taxes incurred in 2010. In a 29-page decision, the court's Special First Division stated the petition for review was filed beyond the prescriptive period. It said the Final Assessment Notice (FAN) issued by the BIR against the techno company had become executory and demandable because the protest was filed late. The court stated Section 228 of the Tax Code requires that protest on FAN must be filed within 30 days upon receipt. Records showed the FAN was issued on Dec. 18, 2014 and the taxpayer answered it on April April 1, 2015. "Considering that the petitioner's protest letter was filed beyond the 30-day reglamentary period the deficiency assessment had already become final, executory and demandable and the court has no jurisdiction to rule on the correctness of the assessment," said Associate Justice Erlinda Uy who wrote the resolution.
BIR(Manila Bulletin File Photo) Revenue Deputy Commissioner for Operations Arnel Guballa issued the instruction after the Court of Tax Appeals (CTA) turned down the petition of M. Tech Products Philippines of Salcedo Village, Makati, which had sought the cancellation of multi-million-peso deficiency value-added and withholding taxes incurred in 2010. In a 29-page decision, the court's Special First Division stated the petition for review was filed beyond the prescriptive period. It said the Final Assessment Notice (FAN) issued by the BIR against the techno company had become executory and demandable because the protest was filed late. The court stated Section 228 of the Tax Code requires that protest on FAN must be filed within 30 days upon receipt. Records showed the FAN was issued on Dec. 18, 2014 and the taxpayer answered it on April April 1, 2015. "Considering that the petitioner's protest letter was filed beyond the 30-day reglamentary period the deficiency assessment had already become final, executory and demandable and the court has no jurisdiction to rule on the correctness of the assessment," said Associate Justice Erlinda Uy who wrote the resolution.