CTA upholds Bacolod agri co-op’s canceled tax liabilities

THE COURT of Tax Appeals (CTA) stood by its decision canceling ANAPI Multi-Purpose Cooperative’s tax liabilities worth P48.08 million, representing its deficiency value-added tax and penalties for the fiscal year 2006.
In an 11-page decision dated May 11, the CTA full court said the commissioner of internal revenue (CIR) forfeited the right to collect the Bacolod City-based cooperative’s taxes from selling its refined sugar product.
“Petitioners (CIR, Bureau of Internal Revenue Bacolod regional director) forfeited their right to collect the assessed deficiency VAT and compromise penalty against the respondent (ANAPI) by reason of prescription.”
Citing the Tax Code and preceding cases, the tribunal said the tax bureau’s right to collect the tax dues lapsed on Dec. 22, 2013.
The court added that the validity of the assessment cannot be questioned on appeal since the CIR had filed a prior tax assessment on Oct. 12, 2009 that attained finality.
The CIR filed an amended version of the assessment on Dec. 9, 2010, which forfeited the right to collect taxes determined in the prior audit.
ANAPI failed to submit its protest on the 2009 assessment, which lead to the decision reaching finality.
“To be clear the final letter of demand/ notice dated Dec. 2010 superseded the original final letter of demand and/ notice dated Oct. 12, 2009,” the tax court said. — John Victor D. Ordoñez