G.R. No. 261065 - Commissioner of Internal Revenue vs. Maxicare Healthcare Corp.

Maxicare Healthcare Corporation is a domestic corporation organized to operate a prepaid group practice health care delivery system (health maintenance organization).
On August 28, 2014, the Commissioner of Internal Revenue (CIR) issued Letter of Authority No. 126-2014-00000060, authorizing the examination of Maxicare’s books and records for all internal revenue taxes for the period January 1 to December 31, 2012.

On August 25, 2015, CIR issued a Preliminary Assessment Notice (PAN) assessing Maxicare for deficiency VAT of ₱618,251,527.72 (inclusive of penalties and surcharges); Maxicare filed a protest on September 10, 2015.
On October 8, 2015, CIR issued a Formal Letter of Demand and Final Assessment Notice (FLD/FAN) assessing deficiency VAT of ₱419,774,484.21; Maxicare protested by letter dated November 6, 2015, expressly requesting a reinvestigation and committing to submit supporting documents within 60 days.

On December 9, 2015, CIR issued the Final Decision on the Disputed Assessment (FDDA), received by Maxicare on December 21, 2015.
On January 20, 2016, Maxicare filed a Petition for Review with the Court of Tax Appeals (CTA) First Division (CTA Case No. 9246).

On January 16, 2020, the CTA First Division withdrew and set aside the FDDA, and cancelled the FLD/FAN, holding that CIR violated Maxicare’s due process rights by issuing the FDDA before the 60-day period to submit reinvestigation documents had lapsed.
On July 21, 2020, the CTA First Division denied CIR’s motion for reconsideration.
CIR elevated the case to the CTA En Banc, which on November 25, 2021, affirmed the First Division; its April 26, 2022 resolution denied CIR’s motion for reconsideration.
CIR filed a Petition for Review on Certiorari under Rule 45 before the Supreme Court.

Whether the CTA En Banc erred in ruling that CIR violated Maxicare’s right to procedural due process—by issuing the FDDA before the 60-day reinvestigation period under Section 228 of the NIRC, as implemented by RR No. 12-99, had expired—thereby rendering the FLD/FAN and FDDA void.