By Kristine Joy V. Patag, Reporter
THE COURT of Tax Appeals (CTA) has upheld its earlier decision to withdraw the Bureau of Internal Revenue’s (BIR) P18-million tax case against actor Derek Arthur P. Ramsay.
Acting on a Petition for Review filed by the BIR, the CTA sitting as a full court has affirmed its Third Division’s decision dated Sept. 17, 2015 ordering the cancelation of the P18,230,498.46 tax case against Mr. Ramsay covering the years 2006-2009.
The BIR argued that the CTA’s Third Division “did not acquire jurisdiction over the case since the [Formal Letter of Demand (FLD)] with assessment notices became final, executory and demandable when respondent failed to file a timely protest.”
But the court held that the Petition for Review “must fail,” adding the BIR’s argument “deserves scant consideration.”
The CTA rejected BIR’s argument that it had no jurisdiction, saying the Court is authorized to review the bureau’s decisions in cases involving disputed assessment.
It also upheld Mr. Ramsay’s timely protest, noting that he received the FLD dated Feb. 27, 2012, on March 14 that year, and filed his appeal on Apr. 11.
The tax court noted further that the FLD failed to specify a demand for payment for the supposed deficiency tax within a prescribed period.
“In this case, it is evident that petitioner (BIR), having failed to demand payment within a specified period of time and to serve upon respondent the subject assessment notices, unjustifiably denied respondent of (his) right to due process,” the Court held.
“[I]n light of the foregoing considerations, the instant Petition for Review is denied for lack of merit. Accordingly, the Decision dated Sept. 17, 2015, and the Resolution dated Dec. 16, 2015, both rendered by the Court in Division, are affirmed,” the decision further reads.
The decision was penned by Associate Justice Erlinda P. Uy.

RELATED ARTICLESMORE FROM AUTHOR