Case Digest (G.R. No. 170389)
Facts:
- The case involves the Commission of Internal Revenue (CIR) as the petitioner and Aquafresh Seafoods, Inc. as the respondent.
- On June 7, 1999, Aquafresh sold two parcels of land in Barrio Banica, Roxas City, to Philips Seafoods, Inc. for Php 3,100,000.00.
- The properties were covered by Transfer Certificate of Titles Nos. T-21799 and T-21804.
- Aquafresh filed a Capital Gains Tax Return, paying Php 186,000.00 for Capital Gains Tax (CGT) and Php 46,500.00 for Documentary Stamp Tax (DST).
- Revenue District Officer Gil G. Tabanda issued Certificate Authorizing Registration No. 1071477.
- The Bureau of Internal Revenue (BIR) received reports of undervaluation, prompting an ocular inspection by the Special Investigation Division (SID).
- The SID concluded the properties had a zonal value of Php 2,000.00 per square meter.
- On September 15, 2000, Regional Director Leonardo Q. Sacamos issued Assessment Notices for CGT and DST deficiencies totaling Php 1,372,171.46 and Php 356,267.62, respectively.
- Aquafresh protested the assessments on October 1, 2000, but the protest was denied on December 1, 2000.
- The denial was upheld on February 13, 2002, leading Aquafresh to file a petition for review with the Court of Tax Appeals (CTA) on March 19, 2002.
- The CTA ruled in favor of Aquafresh on December 22, 2004, stating that the existing Revised Zonal Values should prevail.
- The CIR's motion for reconsideration was denied, and the appeal to the CTA En Banc was dismissed on November 9, 2005.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled against the petitioner, affirming the November 9, 2005 Decision of the Court of Tax Appeals En Banc.
- The Court held that the requirement for consultation with competent appraisers is app...(Unlock)
Ratio:
- The Supreme Court's decision was based on Section 6(E) of the National Internal Revenue Code (NIRC), which requires the Commissioner of Internal Revenue to consult with competent appraisers from both public and private sectors when determining fair market value.
- The Court emphasized that the BIR's unilateral reclassification ...continue reading
Case Digest (G.R. No. 170389)
Facts:
The case involves the Commission of Internal Revenue (CIR) as the petitioner and Aquafresh Seafoods, Inc. as the respondent. The events leading to the case began on June 7, 1999, when Aquafresh Seafoods, Inc. sold two parcels of land, including improvements, located in Barrio Banica, Roxas City, to Philips Seafoods, Inc. for a total consideration of Three Million One Hundred Thousand Pesos (Php 3,100,000.00). The properties were covered by Transfer Certificate of Titles Nos. T-21799 and T-21804. Following the sale, Aquafresh filed a Capital Gains Tax Return and paid Php 186,000.00 for the Capital Gains Tax (CGT) and Php 46,500.00 for the Documentary Stamp Tax (DST). Subsequently, Revenue District Officer Gil G. Tabanda issued Certificate Authorizing Registration No. 1071477. However, the Bureau of Internal Revenue (BIR) received reports suggesting that the properties were undervalued for tax purposes. This led the Special Investigation Division (SID) of the BIR to conduct an ocular inspection, concluding that the properties were commercial with a zonal value of Php 2,000.00 per square meter.
On September 15, 2000, Regional Director Leonardo Q. Sacamos issued two Assessment Notices to Aquafresh, indicating deficiencies in CGT and DST amounting to Php 1,372,171.46 and Php 356,267.62, respectively. Aquafresh protested these assessments on October 1, 2000, but Director Sacamos denied the protest on December 1, 2000, citing a lack of legal basis. The denial was upheld on February 13, 2002, prompting Aquafresh to file a petition for review before the Court of Tax Appeal...