WEEKLY TAX UPDATES [JULY 3-7, 2017]

TAX COURT DENIED BIR ASSESSMENT DUE TO PRESCRIPTION + PEZA WARNS OF LOSSES ON REDUCED TAX PERKS + BIR ASSISTS IN MARAWI


A CTA DECISION PARTIALLY DENYING BIR ASSESSMENT ON GROUND OF PRESCRIPTION  

Salcedo Ristorante Italiano, Inc. filed a Petition for Review seeking cancellation of a 2008 BIR assessment in the amount of Php 4,074,712.61. The assessment was pursuant to a 2009 Tax Verification Notice which led to the issuance of 2011 Subpoena Duces Tecum for failure to present books of accounts and accounting records and was later issued a Formal Assessment Notice dated May 8, 2013.

Sometime in June 2012, the company stopped its operations and closed its business. However, it did not inform the respondent of the cessation of the business and did not update the BIR registration system. Consequently, pursuant to Section 223 of the National Internal Revenue Code of 1997, the running of prescription against the respondent CIR's right to assess was suspended when its examiner was able to confirm that the taxpayer moved out of its registered address. By this time, however, the three-year prescription for the right to assess VAT, EWT, and withholding tax on compensation, except income tax, had already set in.

 

The instant Petition for Review is PARTLY GRANTED. The VAT, EWT, and withholding tax on compensation, including the imposition of the compromise penalties, are hereby CANCELLED. However, the company is ORDERED to pay deficiency income tax in the amount of Php 1,285,642.00 including deficiency interest and delinquency interest. [SALCEDO RISTORANTE INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 8880, JUNE 22, 2017]

 

SEC ADVISORY & MEDIA RELEASE

The Securities & Exchange Commission has issued an Order of Revocation, dated June 21, 2017, to 103 lending companies for failure to obtain a Certificate of Authority (CA) to operate as a stock-registered lending corporation.