CTA clears firm of P35M in taxes
THE COURT of Tax Appeals (CTA) has cleared IBMS Technology Phils. Corp. of P35.35 million in tax liabilities, as it ruled the Bureau of Internal Revenue (BIR) had failed to issue a valid formal assessment notice (FAN) in 2015.
The tax agency’s assessment notice suffered from “incurable defect” because it did not specify the amount of the tax and when it was due, the tax court’s Special Third Division said in a 20-page decision promulgated on March 15.
“Without a valid formal assessment notice, the assessment that sprung from it is inescapably void,” Associate Justice Corazon Ferrer-Flores said in the ruling.
Also, the court ruled that the petitioner is not liable to pay the subject compromise penalties. “Since the subject assessments are void, petitioner cannot likewise be held liable to the compromise penalty in the amount of P70,000,” it said. — Chloe Mari A. Hufana