Case Digest (G.R. No. 230104) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Bureau of Internal Revenue v. Samuel B. Cagang, the BIR issued a Letter of Authority on February 20, 2003 to CEDCO, Inc. covering taxable years 1997–2001. CEDCO sought cancellation on April 14, 2003, citing prior yearly examinations, its use of the Voluntary Assessment and Abatement Program for 2000–2001, full payment of deficiencies, and disposal of 1997–2000 records under Section 235 of the NIRC. The BIR denied this request, examined available records, and on May 3, 2005 issued a Preliminary Assessment Notice for income tax, VAT, expanded withholding tax, and compensation withholding tax for 2000–2001. CEDCO protested in June and August 2005, but the BIR issued a Formal Letter of Demand on December 9, 2005, for ₱126,564,315.98. A Final Decision on Disputed Assessment (FDDA) dated September 28, 2007 upheld the deficiency assessments totaling ₱105,020,061.50 for 2000 and ₱21,544,254.48 for 2001. On November 28, 2007, CEDCO availed itself of the tax amnesty under RA 9480, cove Case Digest (G.R. No. 230104) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Letter of Authority and Initial Examination
- On March 4, 2003, CEDCO received a Letter of Authority (LOA) dated February 20, 2003, covering taxable years 1997–2001; CEDCO requested its cancellation on April 14, 2003, citing prior yearly examinations, availed Voluntary Assessment and Abatement for 2000–2001, payment of deficiencies, and disposal of 1997–2000 records under Section 235, NIRC.
- The BIR denied the cancellation request; CEDCO submitted all available records for examination.
- Assessment Notices and Protests
- On May 24, 2005, CEDCO received a Preliminary Assessment Notice for taxable years 2000–2001 covering income tax, VAT, expanded withholding tax, and withholding tax on compensation; CEDCO protested via letters dated June 5 and August 17, 2005.
- Despite protests, the BIR issued a Formal Letter of Demand on December 9, 2005, demanding ₱126,564,315.98; CEDCO appealed on February 8, 2006.
- Final Disputed Assessment and Tax Liabilities
- The BIR issued a Final Decision on Disputed Assessment (FDDA) on September 28, 2007, denying protests and fixing CEDCO’s liabilities at ₱105,020,061.50 (2000) and ₱21,544,254.48 (2001) for income tax, expanded withholding tax, VAT, and withholding tax on compensation.
- On November 28, 2007, CEDCO availed of tax amnesty under RA 9480 for all unpaid national internal revenue taxes for 2005 and prior years and paid the corresponding amnesty tax on November 29, 2007.
- DOJ and Secretary of Justice Resolutions
- A complaint‐affidavit dated August 14, 2009 charged respondent Cagang (treasurer) and Paredes (president) for willful failure to pay CEDCO’s deficiencies under Section 255, NIRC. The DOJ‐NPS dismissed for lack of probable cause on March 12, 2010; motion for reconsideration denied January 5, 2011; Secretary of Justice denied review on February 27, 2012.
- Secretary De Lima granted the BIR’s reconsideration petition on August 13, 2013, reversing prior dismissals and directing the filing of Informations.
- Court of Appeals and Supreme Court Proceedings
- Cagang filed a certiorari petition with the CA on October 24, 2013; the CA issued Informations in the CTA and RTC in February and September 2014 for various tax offenses.
- On June 27, 2016, the CA granted Cagang’s petition, reinstated the February 27, 2012 DOJ dismissal, and set aside the August 13, 2013 Resolution; a motion for reconsideration was denied on February 6, 2017. The BIR then filed a petition for review with the Supreme Court.
Issues:
- Is CEDCO entitled to avail of the tax amnesty under RA 9480?
- Is there probable cause to charge respondent Cagang with violation of Section 255 of the NIRC?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)