Case Summary (G.R. No. 204992)
Assessment and Liabilities
The examination revealed that the petitioner was liable for a substantial amount in deficiencies, which included income tax, value added tax (VAT), and other related taxes, totaling P2,395,826.88. Subsequently, the petitioner settled these amounts on August 30, 2000. However, on August 25, 2000, the respondent initiated a reinvestigation and issued a subpoena for additional records that the petitioner contested on grounds of a prior examination of the same documents.
Criminal Complaint and Its Dismissal
As the petitioner failed to comply with the subpoena, the respondent filed a criminal complaint against it for violation of the 1997 Internal Revenue Code, specifically Sections 5 (c) and 266. This criminal complaint was dismissed due to insufficient evidence. Subsequently, on August 6, 2003, the respondent issued a Final Assessment Notice for income tax and VAT deficiencies totaling P67,597,336.75 for the taxable year 1999.
Protest and Final Decision
The petitioner contested the assessment through a letter dated September 23, 2003. The respondent responded with a Final Decision on Disputed Assessment dated August 2, 2005, informing the petitioner of its tax liabilities amounting to P15,396,905.24 for income tax and P63,688,434.40 for VAT. This decision also warned that failure to appeal within thirty days would render the assessment final and executory.
Delay in Filing for Review
Instead of filing an appeal to the Court of Tax Appeals (CTA), the petitioner opted to submit a Letter of Reconsideration on September 1, 2005, which did not formally halt the thirty-day appeal period. Following this, the respondent sent a Preliminary Collection Letter demanding payment, prompting the petitioner to file a Petition for Review on October 20, 2005. The respondent contended that this petition was filed beyond the applicable deadlines.
CTA's Dismissal of the Petition
The CTA First Division upheld the respondent's argument regarding the petition being late and consequently dismissed it. The petitioner subsequently filed a Motion for Reconsideration, which was also denied. Following this, a petition was filed with the CTA En Banc, which similarly concluded that both petitions were untimely.
Legal Framework and Conclusion
The main legal reference in this case includes Section 228 of the 1997 Tax Code, which outlines the procedures for protesting tax assessments. It stipulates that a
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Case Overview
- The case involves Fishwealth Canning Corporation (petitioner) and the Commissioner of Internal Revenue (respondent).
- The dispute centers around the assessment of internal revenue taxes for the taxable year 1999.
- Petitioner was assessed for various tax liabilities amounting to P67,597,336.75, which it contested.
Background Facts
- On May 16, 2000, the Commissioner of Internal Revenue issued a Letter of Authority to examine the internal revenue taxes of the petitioner for the taxable year 1999.
- The examination revealed that the petitioner owed a total of P2,395,826.88, which included income tax, value added tax (VAT), withholding tax deficiencies, and other miscellaneous deficiencies.
- Petitioner settled these obligations on August 30, 2000.
- On August 25, 2000, a reinvestigation was conducted, and a subpoena duces tecum was issued requiring the submission of books of accounts and other records.
- The petitioner requested cancellation of the subpoena, arguing the same documents had already been examined.
- Failure to comply with the subpoena led to a criminal complaint against the petitioner, which was dismissed for lack of sufficient evidence.
Assessment and Contestation
- On August 6, 2003, the respondent issued a Final Assessment Notice for income tax and VAT deficiencies totaling P67,597,336.75 for the taxabl