Case Digest (G.R. No. L-6189) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Commissioner of Internal Revenue v. Transfield Philippines, Inc. (G.R. No. 211449, January 16, 2019), the Commissioner of Internal Revenue (CIR) assessed Transfield Philippines, Inc. (Transfield) for P563,168,996.70 in deficiency income tax, Expanded Withholding Tax, VAT and penalties for FY 2001–2002 via Final Assessment Notices (FANs) issued May 30, 2007. Transfield filed a protest on June 5, 2007, but before resolution the BIR issued a First Collection Letter (August 3, 2007) and a Final Notice Before Seizure (December 20, 2007). On February 29, 2008, Transfield availed itself of the general tax amnesty under R.A. No. 9480 by submitting its Notice of Availment, Tax Amnesty Return (BIR Form 2116), SALN as of December 31, 2005, and Tax Amnesty Payment Form (BIR Form 0617) and paid P112,500.00. Despite Transfield’s compliance, the BIR, invoking RMC No. 19-2008 (which disqualified “delinquent accounts” from amnesty), issued a Warrant of Distraint and/or Levy (WDAL) on Septembe Case Digest (G.R. No. L-6189) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Assessment and Initial Protest
- On May 30, 2007, Transfield Philippines, Inc. received Final Assessment Notices Nos. LTDO-122-IT-2002-00014, LTDO-122-WE-2002-00011, LTDO-122-VT-2002-00012, and LTDO-122-PEN-2002-00002 from the Commissioner of Internal Revenue assessing a total of ₱563,168,996.70 for income tax, Expanded Withholding Tax, VAT and related penalties for fiscal year July 1, 2001 to June 30, 2002.
- On June 5, 2007, Transfield filed a protest with the BIR. Without resolving the protest, the BIR issued a First Collection Letter (August 3, 2007) and a Final Notice Before Seizure (December 20, 2007).
- Availment of Tax Amnesty under R.A. No. 9480 and Distraint
- On February 29, 2008, Transfield filed Notice of Availment, Tax Amnesty Return, SALN (as of December 31, 2005), and Tax Amnesty Payment Form with Development Bank of the Philippines, paying ₱112,500.00 amnesty tax. On April 23, 2008 it paid ₱2,000.00 for a VAT penalty. It informed the BIR Large Taxpayers District Office on May 5, 2008 of its amnesty compliance.
- On July 10, 2008, the CIR issued a letter disqualifying “delinquent accounts” from amnesty per RMC No. 19-2008. On September 8, 2008, the BIR issued a Warrant of Distraint and/or Levy (WDAL) covering ₱563,168,996.70, constructively served on September 11, 2008.
- Proceedings Before the Court of Tax Appeals
- CTA First Division (Amended Decision, February 28, 2012): Held that Transfield complied with R.A. No. 9480 requirements and enjoyed immunity; declared the WDAL null and void. Motion for reconsideration denied on May 14, 2012.
- CTA En Banc (Decision, August 5, 2013; Resolution, February 19, 2014): Confirmed CTA First Division’s rulings, affirmed jurisdiction to entertain petition against issuance of WDAL, and denied reconsideration.
- Petition for Review to the Supreme Court
- CIR’s petition raises two issues: (a) CTA’s jurisdiction; and (b) entitlement of Transfield to immunity under R.A. No. 9480.
- Transfield argues CTA’s exclusive appellate jurisdiction over BIR actions, immediate enjoyment of amnesty immunities upon compliance, and invalidity of RMC No. 19-2008 exception.
Issues:
- Jurisdiction
- Whether the CTA properly assumed jurisdiction over the petition challenging the WDAL.
- Tax Amnesty Immunity
- Whether Transfield, having complied with R.A. No. 9480, is entitled to immunity from payment of assessed taxes.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)