CTA denies BIR petition to review RCBC Savings’ tax deficiency
THE COURT of Tax Appeals (CTA) has denied the Bureau of Internal Revenue’s (BIR) petition for review over the tax deficiency case of RCBC Savings Bank, Inc. (RCBC Savings) in 2006 for lack of merit, it said in a decision.
The case stemmed from the P59.8-million tax deficiency inclusive of penalties for 2006, as assessed, which RCBC Savings protested before the BIR in February 2012.
In its initial investigation, the BIR said the tax deficiency of the bank amounted to P1.7 billion, reduced to P64.3 million in the preliminary assessment. This was changed to P59.8 million in the Final Assessment Notice (FAN).
RCBC Savings also filed an appeal in December 2013, which the BIR denied in January 2015.
Following this, the bank brought the case to the CTA for review which was granted in December 2018, cancelling the payment for the assessed P59.8-million tax deficiency.
The BIR in January 2019 asked for a reconsideration, but the court denied the motion.
The CTA explained in the 14-page ruling dated Oct. 13 that the petition for review of the BIR only reiterated its arguments in the motion for reconsideration.
“The Petition is a mere rehash of the Motion for Reconsideration filed by petitioner before the Court in Division,” the ruling said. “The arguments therein have already been extensively passed upon by the Court in Division when it resolved the said Motion for Reconsideration.”
RCBC Savings Bank was the thrift unit of Rizal Commercial Banking Corp. and was merged into the latter in 2019. — CAT
