THE Court of Tax Appeals (CTA) affirmed the cancellation of P50.5-million tax assessment against South Luzon Tollway Corp. over a Documentary Stamp Tax (DST) deficiency, among others.
In a 12-page decision dated Oct. 28, the court, sitting en banc dismissed for lack of merit the appeal of Bureau of Internal Revenue (BIR) over the July 2018 decision and January 2019 resolution of the court in division, which cancelled the assessment and ordered the refund of P49.8 million in erroneously paid DST.
The en banc court upheld the division’s decision nullifying the assessment of South Luzon’s deficiencies for stating an indefinite amount and not having a due date for payment, noting that the court cannot ignore jurisprudence from the Supreme Court. The CTA in the earlier decision said BIR was obliged to refund the P49.8 million as it was undisputed by the parties.
BIR is contending that the issue of the lack of due date in the assessment notice was not raised by the company and failure to include the due date is not fatal for the collection of tax liabilities.
The company paid the P49.8 million billed to it in September 2015. The BIR issued a Formal Letter of Demand worth P50.6 million the next month.
The court also said the bureau’s right to due process was not violated.
“Unfortunately, petitioner fails to specify which tenet of due process did the First Division violate in rendering its decision,” the court said.
“In reviewing the case’s history, the Court En Banc is unconvinced that petitioner was given an unfair trial. It appears that all the necessities of due process were met,” it added.
The court said the company’s petition for review was filed on time and the bureau was given an opportunity to present its evidence and witnesses and the case was decided after a full-blown trial.
The decision was written by Associate Justice Jean Marie A. Bacorro-Villena. — Vann Marlo M. Villegas
