CTA Case No. 4180 (Decision)

r REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY CHINA BANKING CORPORATION, C.T.A. CASE NO. 4180 F'e� �l: i t.ioner; COMMISSIONER OF INTERNAL REVENUE, Respondent.. ~< .�- -~~ -- �- DE C s 0N Respondent Commissioner of Internal Revenue~ in a mntior filed on De tober- 21 ~ 1987 ~ seeks the dismissal ryf petitioner's appeal on the gr-ound o �f .ack of jurisdiction. He contends that the appeal in this case is premature since a decision has not yet been rendered on the contested assess ment that mi':\Y be <~PP E' i:'lled to this Cour. t as contemplated in Section 7(1) of Republic Act No. 1125. We agree with respondent. The pertinent facts as alleged in the petition for� d.i.sclo~; e that on ~June 25~ 1987 pl::.?t.i t.ioner- n::?ceivt"?d ~~ letter--assessment dated Mi':I.Y 1987~ tot;.Jethf.7!r ~--~i th Income Tax Assessment ...

DECI SION CTA CASE NO . 4180 - 2- r�equ.i !~.i nq pei.:.i. t.i.unel'" to d ('�? f .i. c .i f.'.'rl c: y documentary ~ta mp ta x as fo ll ows: :t...?....$. .._:? P.s~.:f.L.<;~__,t<:~ r_,_ r,::_y___..I.~.<:J.<.=..t~\m_<?_L1...tE1 ': : .Y....fLt~2o!T1.E..... T .<:tlL �.:. Promi ssory Notes Issued Documentary Stamp Tax Due -- Th E~I'"" E!Drl ____:.;_ r::.69..Z.!l.1f?_:;::~_,__6.9.~.=-~-~..<2Q. ~: PO� 6 5 � t~.!J.j~_I:"(_,_ _::'}XJ...~J.-g_ F'?OO.OO l.-<Jh.i J. E~ pP t .i. t .i. on f:'!r� c:1 v<:--:>r� ~:; the-~ t pr��:i.or to t h e a.r:ss;ess rn e n t, i t. ha d "f i l ed i':l l'"f.2ques t and rei n ve~; t .i. !JC:I t ioh a assf?~s<s ment. 1\.lot.ice of r�espondent dat.E!d Uctober .1.5, 1985 proposi ng a n amendment, dE~f:i.1::iE'rlCY documc:~ ntc:~I'"Y ~::;tamp t,::~:-: i n the amount. of P:,~, .16<;>, :::;::,? .l .70 �fot�� 1.98:? , it~ ssubseq u ent. pr�otes t. em Ju l y 22, 1987 aga1 n st t he aforemen tion ed assessment o�f t'"lc-,\y :?(1, .1.9E!7 h i:":\S not YE't:. b�-~en <:~c:te d upon by respon dent be -fore the petition "for rPview was filed with th js Cnurt on Jul y 24, 1987. Ob vio u s ~ y, becau se no d ecision h as as yet been rendered by respondent on the protest of pe titioner agai nst the assess ment of May 29, 1987, there cou l d be no appealab l e decision cognizab l e by this Court.

DECISION CTA CASE NO. 418 0 - 3- ( F' J. !'2<':\ S E' C;'-'nclym ,':'. n ~ \IS,. The Commissi o ner of Internal _.R. evenue .. J. !3 7 ~? " , .} ( - ) .1.970 .. ) l.Jnd!?.r- ~3f?C: t :i.on 7 ( l) .�... �..� !I F~: f.;�puhlJ .c (.) c t No � .1.:1.:;.~~'.'�, \~Jh o:\t. ir-; r- E~ vir:~ v-li':1. hlr::> b v t h i s Court on appeal is the decision of the Commissioner o �f Int.Pr��nc:\ l F\PvPnUE~ o n '"'� r:lispu.tt:��d ,:,\ s~"'� P~:;;~"� rnent Fl.nd not t hr::> '"' '=�. :� ~:; ,;; mr~ n t . .i. t �.S!�?. l f � h c> ld :: Tt���,p l C:\1.�1 con f E' r�� r- :i. n q j t.tl,.. i �::;cl :.i. r.: t i (�)r�, . on C:ou ,--- t of Tax Appeal s i s foun d in f3r:.> c:: t� jon 7 o �f PcpLtbl.ic: {1 c: t .lJ.~:::: ~.1, thra pPr.. t �..i.npn t:. par� t of whic h s tate s : 11 s (;;~c:: . 7. J. t.,.t cj._~;s.i). s::_:l:, t!=!.r.J .' The Court of Tax AppPa ls shal l e xercise e xc lusive appellate j l .llr� i <,.;; c:l .i c: t. i Cl n to r-�-? v i e ~�J h y i'-' p p E~ i:~ 1 as herei n pro v id e d - J ) II ( Decisions of the Co ll PC to I,.. (now Commissioner) of Int E-~t-n.::\ 1 F\ ~:>venuf::> .in ce~se s :i.n v ol v .i.nq d.i.. ~s p'..i.tf.~ d ;,~~::;sE~<=:; r::; m pn-1-:. <:,,~ ,,.. F.���f un cl -::-, of in t .f? r� n iol. J. r.. r.:> VF!n i_tE~ t .:'1:-:e s !l ft::?C�?.C.5 or- ot.her- c: h ,3 t-�qc::!c-3, penalties impos ed in re l ation theretoi or other matters arisinq under th e Nation a l Internal Revenue Code or other law or part of l aw ad mini stered by thP Bureau o�f I n t er-�n-a. l nc?.venU0?.. 11 ~ T ht:> t�,,o r�c:f 11 clc�)C: i <;; ion~:; 11 in pa ,,. aq r i:'t ph .1. ~ Sec t io n 7 of Republic Act .1..1.25, quoted a bovR, has been i ntPrpr eted to mean the ~J.g.r,::..,i~'!.,t~Lf-1..'2.. o f t .h e Commissioner- of Inter.. n a l F:!::>VPnUE? on thE�~ p.r.:.P.tc~.2.t o �f the t a;.: payer against the assess men t s. Definitr.:> l y~ sai d 4\.. A

DEC I SION CTA CASE NO . 418 0 - 4- cl nr��c:; n o t� �::; i q n i f y �t.h F�? . :i. t: C . o:.::.> l �f " q I. \ Lt t" ��:' V! h i�'"t +_- -1-� h:i. t::: ;:" ':"':" ~:: E:� -:~:. c~: rn ,,., n t . L r ' 1. �' r�� l ~'' ..,..,_.i.. d ., Tr1 t he "f .i r �<:::.-1-: n J .,.,_c: c� , t.:�Jf.�' t:J.r;:~J.\r~~\/rc:: 1. ! "t(? ... ...... J. r..::'!'~�pqr 1 rj(:?.J1. 1.... c; q t,t l:: l; r:::~ 1: ,:-r'~ r:l ....... _j, r1. . .... _llr)) (1 _i, rl u. ........ t)J i~' l:. ............! . U r:~ �:'\ ~'~ �:;: e._�:; ~;; rr1r:�:' f.l .�.i. I"} . q tJ C? ~::; .t ..i, qr1. i. ""� t.! �,r:c� 1:q �::; pnr:q:i_F'.I":l t ... . r.:c�,JJ e(::: _l:.p v- 'y:~ . ... r}t:~!_(:: ..L~;j_ r:}u. p 1�. ,.. tt.), \nf.~ ... �:~PJ ) ''c�~ i;~]. ,-.-ll ').("'-�� � t ':-J i t . , .:~. nc1 �!:".h .::; 1:: r-:: n q ":'-F' c~ '� t r-::,q t . 1. y ~ l � h e�' PC'�' I'". .i or::! o+ t .h :.i. t��� t -..,/ �..:i ,:�,, y '"' r.::o 1��� t.�:�' .,,; c r� :i. h 0~ d b \' ~; r::;, c: t .i o r �1 �1 1. ( 1 -r r;:F� r�"~. h l i ,.~ t1 r:-- 1:�: 1"-1u .. :1.. .l :.? ~.'.'i \��.i .i "1". h .i 1�1 '�'�' h j c� h r:1r-:-::� t . �.i t �. :i D n F��1��� ~::: h<:::OI. ! 1 d ha v P 2 pp~ a J p d tO the ~ pspa nd en t CU I.t. r��t rn u o:; -1:. h P c: u t l.r�Jl:r.? d fr��u m it ~::: ~ e c e .ip t nf sa id ass e ssmen t. Wh e r P a t a xpa yer ques t io n s an assess me nt a nd as k s th e C ull ec: t o~ t .u r�� r,, c:: un s .:i. cl "" ,... u r� c: c":\ll c: F' J. t�.h ~:~ c.;: Et ill F~ h E!C: i:~. U S'i E! hr:� (the t ax p a y e ~ l lJ (:? ] i C:! \IE�~~3 h r:.� .i~: : ; nut J :i .:-1 hl <-:? t . h r-"! ,,.. c~ �fo r�� ~ "1::. hr::.� ,:-:~ '"; ~.::; C' ~;; .:=.. mr=> n t . "''� ' cl :i.. s p 1. .! t:.c-:� d .:-~ ~;:. ~''�Po:;;. ~:;; rn c:� n I� ' 'Lh ;:o. t th P C~ l l ec tnr mu s t d ecide, �''1r1d th P t .i:\ ~< n <'�' yP r�� c:: ;::, n c:�. p pF!i':\ 1 t .o 1:: J����'"�' c::uu. 1'�t. c��f T ,,, ;.:: tl r.:� pF'''~ l <:-::. o n 1. y '.!n o n r �\:?c: r-:7~ i pt. o "f -1-: h r-:-~ rJ r:�' c: :i �;:; :\ c� n n �f ti �l(�:::. � c,���, ] J rc:�r: t. u r f") f"l i.:. h 1:.,. r:1 .i. <'; p U. t �. f:�r:l '"' ""� <:: ,-,,. "'' c;; rn r-::c n t.: �Em phasis sup pli e d ) �r 1�1 C�! ~::: ,.., mF"�' .i. n -1-:c:-' r � p ~:.~��:�t.i::,_ l". :.i u r1 "f .i n c:l �::; c"'� �..t ppur.. -1: c� f F.'E~ p u. h l �i r::. r~c 1:. :l J. :�;.:> ~.'.'i , v,l i���l .i . c h �i.n HF�c t-.:i. c1n l "1. '"� l .=�1. I� c><:::. ~ .. II f3 t:~ (' ,. .1. J. ., (~ f:L(:~ (;; J - .. u.L. : .J.~JJP<-:~_<';1 } n n y nE~ ~�- ~=.o n , assuc .:i. a t i on o~ c o~ p u~a t .ion ,;�,_d v f.:' ,... ~:; r::�:�� 1 y ;�., "f +r::�' c:: t�. r.:-:� d h v "'' c:l r,:�~ r::. :\ ~:.:;j,_c~ r�1. u. r) r- I':J,\.J..:i...n.. u f t .h c� C o l l c� c::t u r- ( rlD \\' � ,)m m i.::o <c,; ion r? r ) of J nt P. I��� n d .l r �:? v F' n t...! F:� !' t h t-:.' Co 1 1 C' c:: t c:� t-� n �f [ u :,::. +�. u rn �:; u r- ;,:~ n y p r-c�v .i r�,c:: .i. '"' l CJ 1... c: .i.. t�.v Be!<'~ l'"� d n "f Assess me nt Ap p ea l s mav i' i 1 P a n .,?. pp E�~d 1 i r�1 l:.h r? Ctl l.JI � �I:�. n�f � r ;:~\.::

.. DE C I S I O N CTA CASE NO . 4180 - 5- Appeals within thir- ty cL"'ys ,::~�ftr.::'r t h E~ r- t�? c e .i p t o �f . s u c h ~t�~f,;:).. �)..q _f.}_ o r- ,~ uJ..i.ng." (Emphasis s upplied) that the l i::"l W l.t Sf~S' the \1-IOI"' d "d ecisions" , n ot thus fur-ther indicating the legi s lati ve intention to s ubjec t to judicia l r-eview th e <}.f;;?._<;;..i :.2 ..:i...9.f.:l_ o �f t hP Corn m:i. s s .i. onE' r.. �. on t:. h e pr �o t .E�s t aqa.i.nst. c-~n -3~;.r.;es s mc::> nt but. not the-' assessment itself . Si n ce in t he instant case the taxp aye r a p pF:.'<'-" 1 E?d �f r - o m the~~ a�s~? f:>~;~. rn e n t of th E-? Cornmi~:;s.ioner- of ' Int.Pr.. nr.:\1 F\Pvt-~ n UE' '"' �:i thout. previous l y contesting the sarne, the appPa l wa s pr-ematur-e and the Cour-t of Tax Appea l s h ad n o jurisdiction to e ntertain sai d <:~ p p E-~ a 1 For- ~ as s. t C.:\ t e cl , t:. he .j u ,,.. i <:'' cl .i c t :i.on u f t. hr? T a:-: Cou ,,.. t i ~:; tel r-c!V .i ei-'J h y ,:_:1_ ppe a l. ~:l.ec;.t~~..Lc~.r:J..~.;. o�f t .hP Cornrni. c,::, <:;ion c:..' t"� of Int ernal l::;:evf.:> nt.t e on d.:i.�:;; putc-?d <~.!::iSf..:>ssments. Th eTa;.: Cour- t�. :.t. <:; "'' cot tr.. t o�f spt-~c::i.:,\ 1 jur-i~:; clic::tion . f-l<=.i ~=.; uch, :i. t . c:,"\ n t .::'l. kE' c:nqt �li :.-:a ncc:~ onl y of s uch matters as a r e clearly within its iur i f". clic ~ l� irJ <l . (Comrni.s!:~ ionc~r. <Tf I n b? t'.. n .::\ 1 Revenue vs. Leonardo S. Villa and the c: Cl U . t���� t:. C) f I ~:\ ~< (.~ p p E~ a 1 s ~ l..._...~:2 3 c; E3 f3 !' J i:~. n t...t a ,r� v ~2 ~ 1968, 22 SCRA 3; Pe~fect o V . F e rn ~ nd Pz vs. C ommi ssio ner of Inte~na l Revenue~ C. T .A. C ase No . 3432, F e b~uar y 25 , 1983. Ur-,det��- Fi f:�? c:ti.on ~:19 �-�� (-) (nnw ~3ectinn :.?'70 ) n'f t�.h f::Y f\.!,':\ t: :i.nn .-.-,\ l l n t F~ t�.. n "' 1 FE~ VE�~ n u e Cod r::~ ~ ;:;.n .-::�.<=.;~5 E�?S"'iiTlE? n t rn ;, y b,.~ pr.. ot es t Qd "' dmin.i. ~:; tr- ,::~t .iv f.~ l y b y �f.il :i..nq <=.1 r-equ.es t 'f u ,... r �<�?. in VP~; t:. .i q '"' t. ion within t. h .i r-t y ( 30) c:l ""y~:; fr-om r-(?C e .i p t of t:. h P "' ~:;ses�:; men t.; nt:.hc::>r.. vJ.i.f..:,E;' !� .it. bf.:o c:ornes 'f'inc:1l and un<:lppE'�'=' l i':lblP. P.lnd i 'f t. h E' pr-ot t-:::' s t .is d P n .:i e d .in who 1 P or- .i. n p ,;:1_r-t. ~ thE? the - .. t ax p ayer a rl ve r se l y affecte d b y the d e ci s ion o n

DECISION CTA CASE NO . 4180 - 6- to th~~ Cour t 0f Ta x Appea l s :; dc�~c:: .i..~::;icn t .h �i <c; C u u. r�� t:. L\1.i t . h :i.n t h .i r�� t v h y the Cur�,c; c:;,q� .tr:�� ntl v., '"=�.i.nce :i. t. c:ICJ E?<:'; nut: "�1ppp;:.;r � �i.n ll �, r.:-. C:�?l<:::r:'.! pP+: .i t . .l.u n c::�r- C l 1i n <::1 r Cur�� pel �.. i::\ l . j on . ~:; i:":i. p PE'C:"'. l t: 0 l .h :i.<:; Cot\ t � t. :i.<;:, I'"" E;'fl),;:; 1::.\.\ f .. F, " la~k o f . iurisrli~t~on. f:3 Cl CJF-:DFFE:D " AMANTE Presid.i 4P. . '--' I

DECISION -7- CTA CASE NO . 4180 WE CONCUR: CE RT I F I CAT I 0 N re ac hed aft e r due ~onsultation amonq the memb e r s of the Court of Ta x Appeal s in a c c ord a nc e with Sec tion 'r .1. :::. ~ ('1 t : i c 1 f.'~ v I I J 0 �f c t hI? 0 n ~::. t i t .u t i u 11 " Presi di g Judge Court ..i::lf Ta x Appeals