By Benjamin Pulta
MANILA – The Court of Tax Appeals (CTA) has dismissed a petition filed by the Bukidnon II Electric Cooperative, Inc. (BUSECO) questioning a PHP23.5 million income tax assessment against it handed down by the Bureau of Internal Revenue (BIR).
In a ruling dated March 25, the CTA said it has no jurisdiction to rule on the case as BUSECO “erred” in taking the case to the tax court without a final decision by revenue officials.
The petition sought to nullify a Formal Letter of Demand (FLD) and Final Assessment Notice (FAN) issued by Revenue Region No. 16 in Cagayan de Oro City on Dec. 3, 2021 for the income tax assessment of PHP23,509,690.98 for taxable year 2018.
The CTA said under the law, the tax court shall exercise jurisdiction over “decisions of the Commissioner of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue.”
It pointed out that the FLD and FAN cannot be considered as a “decision”’ on the protest of the taxpayer against the subject tax assessment or an FDDA (Final Decision on Disputed Assessment).
“Nowhere does it state in clear and unequivocal language that such letter already constitutes respondent’s (BIR) final decision of the disputed assessment, as required under Section 3.1.5 of RR (Revenue Regulations) No. 12-99, as amended,” it said. (PNA)
