Case Digest (G.R. No. 202093)
Facts:
The case involves Lascona Land Co., Inc. (petitioner) and the Commissioner of Internal Revenue (CIR, respondent). On March 27, 1998, the CIR issued an assessment notice against Lascona for alleged deficiency income tax for the year 1993 amounting to ₱753,266.56. Lascona protested the assessment on April 20, 1998. The Bureau of Internal Revenue, through the Regional Director, denied the protest by letter dated March 3, 1999, stating that since the case was not elevated to the Court of Tax Appeals (CTA) within the required period, the assessment had become final, executory, and demandable. Lascona then appealed to the CTA on April 12, 1999, arguing that it had the option to await the final decision of the Commissioner on the protest beyond the 180-day period. The CIR maintained that failure to appeal within 30 days after the 180-day period rendered the assessment final. The CTA initially nullified the assessment, upholding Lascona's interpretation of Section 228 of the National In...Case Digest (G.R. No. 202093)
Facts:
1. Assessment Issued: On March 27, 1998, the Commissioner of Internal Revenue (CIR) issued Assessment Notice No. 0000047-93-407 against Lascona Land Co., Inc. (Lascona) for a deficiency income tax of ₱753,266.56 for the year 1993.2. Protest and Denial:
Lascona filed a letter protest on April 20, 1998. On March 3, 1999, the Bureau of Internal Revenue (BIR) denied the protest, stating that Lascona failed to appeal the assessment to the Court of Tax Appeals (CTA) within 30 days from the lapse of the 180-day period, rendering the assessment final and executory.
3. Appeal to the CTA:
Lascona appealed to the CTA on April 12, 1999, arguing that the Regional Director erred in ruling that the assessment became final and executory due to the failure to appeal within the prescribed period.
4. CTA Decision:
On January 4, 2000, the CTA nullified the assessment, holding that under Section 228 of the National Internal Revenue Code (NIRC), a taxpayer has two options in case of inaction by the CIR: (1) appeal to the CTA within 30 days from the lapse of the 180-day period, or (2) wait for the CIR’s final decision and appeal thereafter.
5. CA Decision:
The Court of Appeals (CA) reversed the CTA on October 25, 2005, declaring the assessment final and executory due to Lascona’s failure to appeal within the 30-day period.
Issues:
- Whether the subject assessment became final and executory due to Lascona’s failure to appeal to the CTA within 30 days from the lapse of the 180-day period under Section 228 of the NIRC.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)