Case Digest (G.R. No. 165451)
Facts:
LG Electronics Philippines, Inc. v. Commissioner of Internal Revenue, G.R. No. 165451, December 03, 2014, Supreme Court Second Division, Leonen, J., writing for the Court.Petitioner is LG Electronics Philippines, Inc. (LG); respondent is the Commissioner of Internal Revenue (the CIR). LG was issued a formal assessment and demand letter on March 21, 1998 for alleged deficiency income tax for taxable year 1994 amounting to P267,365,067.41, computed from disallowed interest and salary expenses, imputed undeclared sales, and disallowed brokerage fees and other charges. LG administratively protested the assessment (April 17, 1998; supplemental protest June 16, 1998), and submitted supporting documents through its auditor, SGV, but nonetheless filed a Petition for Review with the Court of Tax Appeals (CTA) on January 11, 1999.
The CTA, docketed as CTA Case No. 5715, rendered a Decision on May 11, 2004 ordering LG to pay P27,181,887.82 (deficiency tax including 20% delinquency interest from March 18, 1998). LG moved for partial reconsideration; the CTA partially granted it by Resolution dated September 22, 2004, reducing liability to P27,054,879.11. LG filed a Petition for Review on Certiorari with the Supreme Court on November 18, 2004 under Rule 45 to assail the CTA decision and resolution.
While the Supreme Court proceedings were pending, LG filed a Manifestation (January 29, 2008) that it had availed itself of the tax amnesty under Republic Act No. 9480 by paying a total of P8,647,565.50 and submitting the required documents (Notice of Availment, Tax Amnesty Return, Tax Amnesty Payment Form, SALN, deposit slip). The Bureau of Internal Revenue (BIR) issued a ruling dated January 25, 2008 finding LG had fully complied and was entitled to the immunities and privileges under RA 9480. The CIR contested LG’s claimed amnesty on grounds including (1) that accounts receivable already on BIR records are government property and thus excluded, (2) that cases already ruled in favor of the BIR before amnesty availment are excluded, and (3) that withholding-tax liabilities are excluded from the amnesty and the CTA case involved withholdin...(Subscriber-Only)
Issues:
- Is the Petition for Review on Certiorari moot and academic in view of petitioner’s claimed availment of the tax amnesty under Republic Act No. 9480?
- Is petitioner entitled to the immunities and privileges under the Tax Amnesty Law (Republic Act No. 9480) such that its assessed deficiency taxes for taxable year 1994 and...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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