FIRST TELECOM PHILIPPINES, INC. v. COMMISSIONER OF INTERNAL REVENUE

CTA Form No.8 (For DCC) 1111111111111111111111 1111111111111111111111111111111111111111111111111111111111 21-000464-0093 REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY FIRST DIVISION CTA CASE NO. 10688 FIRST TELECOM PHILIPPINES, INC., Petitioner, - versus- NOTICE OF RESOLUTION COMMISSIONER OF INTERNAL REVENUE, Respondent. To: OFFICE OF THE SOLICITOR GENERAL 134 Amorsolo Street, Legazpi Village Makati City ATTY. AYESHA RANIA B. GUILING-MATANOG ATTY. MARVEEN B. DE LA PAZ Bureau of Internal Revenue Room 703, Litigation Division, BIR National Office Building Sen. Miriam P. Defensor-Santiago Avenue Diliman, Quezon City DU-BALADAD AND ASSOCIATES 20th Floor, Chatham House Rufino comer Valero Streets Salcedo Vi llage, Makati City GREETINGS: You are hereby notified by these presents that on April 15, 2025, a Resolution was rendered in the above-entitled case, copy of which is attached hereto. Quezon City, Philippines, April 21, 2025. Atty. Maria Jo= . Chan-Te Executive C ~orui II

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY FIRST DIVISION FIRST TELECOM CTA CASE NO. 10688 PHILIPPINES, INC., Members: Petitioner, -versus- DEL ROSARIO, P.J., Chairperson, BACORRO-VILLENA, and CUI-DAVID, JJ. COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. ){- - - - - - - - - - - - - - - - - - - - - - - - - - RESOLUTI Before the Court 1s respondent's Motion for Reconsideration (Re: Decision dated December 17, 2024) filed via personal service and e-mail on January 17, 2025, with petitioner's Comment (on Respondent's Motion for Reconsideration dated January 17, 2025), filed via personal service and e-mail on February 7, 2025. Respondent's Motion seeks the reversal of the Court's Decision promulgated on December 17, 2024 . (assailed Decision) , which granted petitioner's Petition for Review. The dispositive portion of the assailed Decision reads: WHEREFORE, in light of the foregoing considerations, the instant Petition for Review is GRANTED. Accordingly, the Formal Letter of Demand with Final Assessment Notices dated December 28, 2017, are CANCELLED and SET ASIDE. The Final Decision on Disputed Assessment dated October 29, 2021, assessing petitioner First Telecom Philippines, Inc. for deficiency income tax, value-added tax, expanded withholding tax, improperly accumulated earnings tax, penalties, and interest for taxable year 2012, is REVERSED and SET ASIDE. Furthermore, respondent is ENJOINED and PROHIBITED from enforcing the collection of the subject deficiency taxes against petitioner.

RESOLUTION CTA Case No. 10688 First Telecom Philippines, Inc. v. Commissioner of Internal Revenue ){------------------------------------------------------------------------------------------){ SO ORDERED. At the onset, the Court notes that the Motion for Reconsideration was filed out of time. Records reveal that respondent, through the Office of the Solicitor General (OSG), received the Notice of Decision on December 23, 2024, while the Bureau of Internal Revenue (BIR) received it on January 2, 2025. Section 11 of Republic Act (RA) No. 1125,1 as amended by RA No. 9282,2 provides: SEC. 11. Who May Appeal; Mode of Appeal; Effect of Appeal.- ... "All other cases involving rulings, orders or decisions filed with the CTA as provided for in Section 7 shall be raffled to its Divisions. A party adversely affected by a ruling, order or decision of a Division of the CTA may file a motion for reconsideration or new trial before the same Division of the CTA within fifteen (15) days from notice thereof: Provide, however, That in criminal cases, the general rule applicable in regular Courts on matters of prosecution and appeal shall likewise apply. .. . [Emphasis supplied] Accordingly, respondent had 15 days from December 23, 2024, or until January 7, 2025, to file the Motion for Reconsideration. However, the Motion for Reconsideration was filed only on January 17, 2025, ten (10) days beyond the deadline. The Court emphasizes that, for purposes of computing the reglementary period to file an appeal and determining whether a decision has attained finality, service on the OSG, not the BIR, is the proper basis. A lawyer deputized by the OSG is considered merely a representative, while the OSG retains supervision and control over the deputized lawyer. As a consequence, copies of orders and decisions served on the deputized counsel, acting as AN ACT CREATING THE COURT OF TAX APPEALS. AN ACT EXPANDING TilE JURISDICTION OF TilE COURT OF TAX APPEALS (CTA). ELEVATING ITS RANK TO THE LEVEL OF A COLLEGIATE COURT WITH SPECIAL JURISDICTION AND ENLARGING ITS MEMBERSHIP, AMENDING FOR THE PURPOSE CERTAIN SECTIONS OF REPUBLIC ACT NO. I 125, AS AMENDED, OTHERWISE KNOWN AS THE LAW CREATING THE COURT OF TAX APPEALS, AND FOR OTHER PURPOSES.

RESOLUTION CTA Case No. 10688 First Telecom Philippines, Inc. v. Commissioner of Internal Revenue Page 3 of3 x------------------------------------------------------------------------------------------x agent or representative of the Solicitor General, are not binding until they are actually received by the latter.3 Given the untimely filing of respondent's Motion, the assailed Decision has become final, executory, and unappealable, thereby depriving this Court of jurisdiction to entertain the Motion. WHEREFORE, in light of the foregoing, respondent's Motion for Reconsideration 1s hereby DISMISSED for lack of jurisdiction. SO ORDERED. ROMAN G. DEL ROSARIO Presiding Justice ON OHICIAL BUSINESS JEAN MARIE A. BACORRO-VILLENA Associate Justice LAN~~AVID Associate Justice Ba/dovino-Torres v. Torres, eta/., G.R. No. 248675, July 20, 2022 [Per J. Inting, Third Division], citing .National Power Corporation v. National Labor Relations Commission, eta!., G.R. Nos. 90933-61, May 29, 1997 [Per 1. Romero, Second Division].