MANILA – The Court of Tax Appeals (CTA) has affirmed a demand letter issued by the Bureau of Internal Revenue (BIR) against the Commission on Elections (Comelec) for more than P1.1 billion in taxes dating back to 2015 representing taxes withheld from employees and suppliers.
In a 22-page decision dated June 2 and made public Tuesday, the CTA denied the petition filed by Comelec and affirmed the BIR’s final letter of demand (FLD), details of discrepancies and final assessment notice (FAN) dated Dec. 21, 2018.
The BIR said the notices, issued by Revenue Region No. 6 in Intramuros, Manila, reached finality after 30 days have lapsed from receipt of the FAN without having been protested.
The law states that a taxpayer contesting an assessment should file the protest within 30 days from receipt of FLD/FAN by filing either a request for reconsideration if no additional evidence will be submitted or request for reinvestigation if additional documents will be submitted
In a request for reinvestigation, documents should be submitted within 60 days from the date of filing of protest letter.
The Comelec claimed that the deadline should not have been counted against it as the final assessment notice was served to an unauthorized individual who was not a regular employee.
Ruling otherwise, the court said the person who received the BIR documents was stationed at the Comelec’s Finance Service Department and the poll body failed to prove that the employee’s duties did not include the authority to receive documents.
“Truth to tell, employee’s status as a mere casual employee or an employee on a job order basis has nothing to do the authority to receive the FLD /FAN,” the CTA said. (PNA)