Case Digest (G.R. No. 207684) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Commissioner of Internal Revenue v. La Flor dela Isabela, Inc., G.R. No. 211289, decided January 14, 2019, petitioner Commissioner of Internal Revenue (CIR) sought review of the Court of Tax Appeals (CTA) En Banc’s September 30, 2013 Decision and February 10, 2014 Resolution, which affirmed the CTA Third Division’s August 3, 2012 Decision and October 5, 2012 Resolution cancelling La Flor dela Isabela, Inc.’s (La Flor) 2005 deficiency assessments for Expanded Withholding Tax (EWT) and Withholding Tax on Compensation (WTC). La Flor, a domestic corporation, had timely filed its EWT and WTC returns for calendar year 2005. It executed three waivers of the statute of limitations on September 3, 2008; February 16, 2009; and December 2, 2009, to extend the assessment period. On November 20, 2009, La Flor received a Preliminary Assessment Notice, and on January 7, 2010, it was served with four Final Assessment Notices (FANs) dated December 17, 2009 for alleged deficiencies and penalti Case Digest (G.R. No. 207684) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Background
- Commissioner of Internal Revenue (CIR) filed a petition for review on certiorari under Rule 45 of the Rules of Court against La Flor dela Isabela, Inc. (La Flor), a domestic corporation.
- La Flor filed monthly returns for Expanded Withholding Tax (EWT) and Withholding Tax on Compensation (WTC) for calendar year 2005.
- Assessment Notices and Waivers
- La Flor executed three waivers of the statute of limitations: September 3, 2008; February 16, 2009; and December 2, 2009, purportedly extending the period for assessment of its 2005 liabilities.
- On November 20, 2009, La Flor received a Preliminary Assessment Notice; on January 7, 2010, it received Formal Letter of Demand and Final Assessment Notices (FANs) dated December 17, 2009 covering deficiency EWT, WTC and penalties.
- Protest and CTA Proceedings
- La Flor filed a Letter of Protest on January 15, 2010. The CIR issued its Final Decision on Disputed Assessment (FDDA) on July 20, 2010, imposing P6,835,994.76 in withholding tax deficiencies.
- La Flor petitioned the Court of Tax Appeals (CTA) Third Division. On August 3, 2012, the CTA Division canceled the assessments as barred by the three-year prescriptive period of NIRC Sec. 203 and invalid waivers; reconsideration was denied on October 5, 2012. The CTA En Banc affirmed on September 30, 2013 and denied reconsideration on February 10, 2014.
- Issues Brought to the Supreme Court
- CIR seeks reversal of the CTA En Banc decisions.
- The petition raises (a) applicability of the three-year prescriptive period under NIRC Sec. 203 to EWT and WTC assessments, and (b) whether the 2005 assessments against La Flor were barred by prescription.
Issues:
- Does the three-year prescriptive period under Section 203 of the National Internal Revenue Code apply to deficiency assessments for EWT and WTC against a withholding agent?
- Were the deficiency assessments for La Flor’s 2005 EWT and WTC liabilities barred by prescription?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)