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CTA voids P49-M assessment notice issued to South Luzon Tollway

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Court of Tax Appeals CTA
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SOUTH LUZON Tollway Corp. has been granted a refund of P49 million by the tax appeals court after it was issued an invalid assessment notice.

In a decision dated July 27, the Court of Tax Appeals ruled that the Bureau of Internal Revenues (BIR) “is obliged to pay” the refund of over P49 million to petitioner South Luzon Tollway. The tax appeals court declared void the Final Assessment Notice (FAN) issued against the petitioner.

“In consequence, petitioner is not liable to pay the deficiency DST (Documentary Stamp Tax) and increments for the fiscal year ending March 31, 2012,” the CTA said in its ruling.

The court found that on Sept. 30, 2015, South Luzon Tollway “paid the alleged deficiency DST in the amount of P49,777,714.28 (inclusive of increments).”

The court also found that the FAN left blank the period of payment for the basic deficiency DST, surcharge, interest and compromise penalty.

“Since there was no assessment notice which properly indicated the due date when the deficiency DST, surcharge, interest, and penalty must be paid, no proper demand for the payment thereof within a specific period was made,” the CTA said.

The tax appeals court also declared Formal Letter of Demand (FLD) with Assessment Notice No. DS-125-00000018-11-15-577, which found South Luzon Tollway liable to pay basic deficiency Documentary Stamp Tax, surcharge, interest and compromise penalty in the total amount of P50,589,423.96 for fiscal year ending March 31, 2012 to be “CANCELLED and SET ASIDE. “

BIR issued the FLD with Assessment Notice on Oct. 22, 2015 after South Luzon Tollway paid more than P49 million a month prior and raised the deficiency DST from P49,777,714.28 to P50,589,423.96. — Gillian M. Cortez





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