The Court of Tax Appeals (CTA) has granted a petition filed by broadcasting firm Altimax Broadcasting Co. questioning a PHP18-million tax assessment on it by the Bureau of Internal Revenue (BIR).
In an 18-page decision promulgated October 6 written by Associate Justice Juanito C. Castañeda, Jr. and released online recently, the court granted the petition for review filed by the firm and set aside the BIR’s warrant of distraint and levy (WDL) dated Jan. 31, 2019 against the firm.
The court likewise canceled and set aside “for being void” the formal letter of demand the final assessment notice (FLD/FAN) issued against the firm for taxable year 2013.
The sum involved alleged deficiency income tax, value-added tax, and expanded withholding tax liabilities, for the year 2013 amounting to PHP18.90 million, including interest, surcharge, and penalties.
The firm claimed that the WDL “has no legal basis” and that the assessment for unpaid taxes is null and void because it did not receive the Preliminary Assessment Notice (PAN) as required under Republic Act 8424 or the National Internal Revenue Code of 1997.
The court said the BIR’s presentation of postal registry receipts to prove the assessments were mailed to the taxpayer firm’s address “is not sufficient” by itself.
“It is still required that the said registry receipts be signed by the concerned taxpayer’s duly authorized representative and that the signatures are identified and authenticated. It is noteworthy that no signature whatsoever appears on the subject registry receipts. Thus, the fact of service to, or receipt of, the petitioner of the subject (assessment notices) was never established,” the court said.
It added that the failure to prove receipt of the assessment “would necessarily lead to the conclusion that no assessment was issued”.
Source: Philippines News Agency
