Case Digest (G.R. No. 261065)
Facts:
Commissioner of Internal Revenue v. Maxicare Healthcare Corporation, G.R. No. 261065, July 10, 2023, the Supreme Court Third Division, Singh, J., writing for the Court. Petitioner is the Commissioner of Internal Revenue (CIR); respondent is Maxicare Healthcare Corporation (Maxicare), a domestic corporation operating a health maintenance organization.On August 28, 2014, the CIR issued Letter of Authority No. 126-2014-00000060 authorizing the examination of Maxicare's books for calendar year 2012. After audit, a Preliminary Assessment Notice (PAN) dated August 25, 2015 (received August 27, 2015) proposed a deficiency VAT. Maxicare replied by a protest letter dated September 10, 2015 (filed September 14, 2015). The CIR then issued a Formal Letter of Demand and Final Assessment Notice (FLD/FAN), both dated October 8, 2015 (received October 15, 2015), assessing deficiency VAT and penalties.
Maxicare filed a written protest to the FLD/FAN by a letter dated November 6, 2015 (received November 9, 2015), expressly requesting a reinvestigation and stating it would submit "pertinent supporting documents and additional explanations" within sixty (60) days from filing. Notwithstanding, the CIR issued a Final Decision on Disputed Assessment (FDDA) dated December 9, 2015 (received December 21, 2015), reiterating the assessment before the 60-day period expired. Maxicare filed a Petition for Review with the Court of Tax Appeals (CTA) on January 20, 2016, docketed as CTA Case No. 9246.
The CTA First Division, in a Decision dated January 16, 2020, withdrew and set aside the FDDA and cancelled the FLD/FAN for violation of due process because the FDDA was issued before the 60-day period for submission of supporting documents had lapsed. The First Division denied the CIR's motion for reconsideration in a July 21, 2020 Resolution. The CIR sought review before the CTA En Banc (CTA EB No. 2325), but the CTA En Banc, in a Decision dated November 25, 2021, affirmed the First Division and enjoined the CIR from collecting the assessed defi...(Pro-only)
Issues:
- Did the CTA En Banc err in ruling that the CIR violated Maxicare's right to due process such that the FLD/FAN and FDDA are void?
- If so, from what point does the sixty (60)-day period to submit relevant supporting documents run — from a protest to the PAN or from a protest to the FLD/FAN (when such protest is a requ...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)