CTA Case No. OC-4649 (Resolution)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY A.N.I. PHILIPPINE FORGE, C.T . A. CASE NO. 4 649 INC., -�� .... V~'f'!';;us COMMISSIONER OF INTERNAL REVENUE, R~!:; pond ent .. X- - - - - - - - - - - X RE S 0 L UT I 0 N This case involves assessments for deficiency ~}9...~........1.~~J~.�. <':\ n d . I!~.l.1JL......~tS?. ~............L~7.8..:Z. i n t h e amount; s <:> f i!:;sued by the Respondent on November 7, 1990 and received by t: h e P <�? t :i. t :i. on(~ �p C> n N.9..Y..~.!!l.P.~.:r.......1�..!L...:!:.~}.5~9. ( see (.) n n <.;.) x e s (.~ and B) .. It shall be noted that the Petitioner timely filed i t s P�~�r'c~nta ~I e Tax ~~~?tu�pn fO'f' the I period July 1985 to June 30, 1985 (see Exhibits A to D) and for the period July 1986 to June 30, 1987 (see Exhibits E to H) .. (.)11 the above documents � formally offered by the Petitioner were never questioned by the Respondent except Exhibits ~ and F f o �r' a 1 l. 0~ !;I ~ d 1 y 11 be :i. n g i �p�p e 1 ~ v <':\ n '!"; �1 i mmat f~ �p :i. a 1 c\ n d :i. Ill p~?'f't i l'\(?nt; II r-=:t~Sp<Jndf~nt'1 ~:; CDmm0~nt t;(.')

RESOLUTION - C.T.A. CASE NO. 4649 - 2- Petitioner~s Amended Formal Offer of Documentary E vidence, pp. 73-74~ CTA Records). Th :i. s h owf.:>V(o�~�r .1 was clarified by this Court when i t resolves to~ 11 3. nclm i t Exh :i. b:i. t~:; E 11 11 <:\nd F 1 1 11 �1 notwithstanding respondent~s objections thereto on the grounds of i r relevancy/ immateriality. The Court notes that~ contrary to respondent~s assertions, the questioned documents are copies of petitioner?s percentage tax returns respectively covering the periods from July to September? 1986~ and from October to Decem l:w�r .1 191:\6;" ( s<-:-~e 1:::eso 1 u t i on datf.~d July E~B, :1.991.?..1 pp. 81.~����B3., CTn H<�?CC)'f'd s) The pe�t i t :i. cmt--:o�r d u 1 y p �r' o t e ~> t <-:�~ d <:\ s s 0~ !5 ~:;. m<~' n t s D n !).gJ~.f:'~.!ll..!?..!~.:r...........J.9. ~.............l.~}~}.Q. �r' i:\ i !:; :i. n !;I others the defense Df prescription for having been i:\~:;!:;e~:;~:;<-:~d beyclnd the reglementary periDd Df three in violation to SectiDn 203 of the Tax �� ~>ec~.. .. E~o~:~ Period Df Limitation Upon (.~s!:> f!'S!:;mf.:>nt ,:\nd Collection Except as p�rovidc~d :i.n the succeeding section, internal revenue taxes sha l l be assessed ~J..t!J.J. n. ..J!..b..:r..�~.!:?....._....Y..f:1..~.:C.2. a f t f:~ �r t h e 1 a~; t d a y prescribed by law for the filing of the t T 0~ Ll '(' n 'I (:\ n d nn..........J?.. :rg~;~5~. ~~.f.U.-.. Il.f!. ................t n.........J~.9.lJT. Ji. !&..~!:.:!!.!:.tf.H:\.t......~.?..~3..~~-~?..1~!.!ll.!~UJ.:.~............t9.:C......Ji.tl.~;t.....f2.9..;!,..l.!'~.L~..! .9.n.....9..t �H,\.�.t.L.....-ti~2.\.f~.?............~.!.!:!.i;~.J..L .........!?.g........ ...!?..~~..!l.~:\.Il...........~~-X:t.~L. ... . .t.!J.e !~..~J.?..tr.~.:t;U.~: .D.....9..t... . . ..5 .h\.<.:.JJ..........J~.~~.:r..t9.!t : P �r D v i d <~ d �.1 That in a case where a return is filed beyond the peTiod prescribed by law? the three-yeaT perie>d shall be ce>unted from tl;l e cl sa )L.....-:th-<~\. -�f'-+?4;l*�Pn w-a"S - --f :i:-1 ed. F o �r' t h f? pur poses of this sect i on, a retuTn filed befoTe the last day prescTibecl by law for the filing theTeof shall be cDnsideTed as f :( 1. f:~cl__9~\.teh 1 s:\~;:~ day. II (Unci f?'I'S(~C) '(' :i. n ~I suppl:i.fi'd).

RES OLUTION - C.T . A. CASE NO. 4649 - 3- :1. 9~:):1. 'J Petitioner received a 1 E~tt<;:>'t' f�r<:>m Respondent dated ~~uqu!:;t 9.1 :1.99:1. ignoring the former's protest and i n f o �r' mi n El t h e P~-:~t :i. t i DnC-?'t' that; of :i. nVE)!:; t i !~ c\ t ion covering its :1.986 and business taxes have already been apprDved and that Demand Notices NDs. 37-2-00:1.:1.9-87-90 and 37-2-00:1.:1.9-A-87-90 issued by the Regional DirectDr Revenue Region No. 40-C San Pablo City Dn November 7, :1.990 were confirmed. AccDrdingly, Petitioner was required to pay the BIR the amDunt Df P:1.,:1.55,555.79 within fifteen (:1.5) Hence, this appeal. PetitiDner filed a MDtion fo�i' PrE�) 1 i Ill in.:\ 'i'Y On th(�? of Prescription respectfully req u esting this CDurt to first resolve the issue of prescription in order "to exp~:~dit;e t;he reso1ut;ion of this ca!:;e .:\!:; the presentation Df evidences on the merits Df the case may be dispensed with or rendered unnecessary shDuld the HDnorable CDurt decide the issue Df iTiot ion, p.. 29, CH~ �r'C�?co�r-d s) � It appears frDm the records that Petitioner filed ).ts f).nal percentage tax return fDr the

RESOLUTION - C.T.A. CASE NO. 4649 - 4- fiscal years ending June 30~ 1986 and June 30, 1987 c> n J u 1 y 1 B .1 1 ':~ H6 and J u 1 y 1. 4 .1 t 9 8? .1 �r-es p C�~ c t :i. v co~ 1 y <Exh. "D" and "H") .. ,C.>'. J.nce Petitic:>neT foT alleged deficiency taxes for the fiscal years ending June 30, 1986 and June 30, 1987 only on :1.6.1 :1.990 b co�~yond it constitutes a violation of the afoTequoted pTovision of the Tax Code. . Hc~~ncc~., 1 the assessment should no longeT be binding on the (Commissioner of Internal Revenue vs. Ayala Securities Corp., 70 SCRA 204, 1976). IN VIEW OF THE FOREGOING, this Court acting on the Motion for Preliminary Hearing on the Issue of Prescription filed by the Petitioner on March 3:1., 1992 hereby RESOLVES to ORDER the Commissioner of Internal REvenue to desist from collecting the deficiency percentage taxes for the same are assessed beyond the reglementaTy period of thTee SO ORDERED . Quezon City, Metro Manila, April :1.3, :1.993. ~lAXQ,C~ /J / ERNESTO D. ACOSTA P�t'~~s i d :i. rltJ Jud q f:~ ~f4~~ RAMON 0. DE v- RA GRUBA (.~s!:;ociate Jt jge Judf:l~~ /