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Philippines: “Final assessment notice” void for lack of due date

Philippines: “Final assessment notice” void

The Court of Tax Appeals (CTA) in the Philippines held that a “final assessment notice”—even if duly received by the taxpayer—is void because the due dates for paying the alleged deficiency taxes were blank.


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The case is: Lorenzo Shipping Corporation v. Commissioner of Internal Revenue


The taxpayer received in 2013 an undated final assessment notice, assessing the taxpayer for an alleged deficiency income tax, value added tax (VAT), withholding tax on compensation, expanded withholding tax, fringe benefits tax and documentary stamp concerning the 2008 tax year. The amount of deficiency tax assessment totaled over PHP 2 billion (approximately U.S. $37.5 million) including surcharges, interest, and compromise penalties.

Upon receiving the deficiency tax assessment, the taxpayer filed a protest via registered mail. However, the protest was denied by the Bureau of Internal Revenue (BIR). The taxpayer then filed a petition for review with the CTA.

In its decision, the CTA granted the taxpayer’s petition for review for the cancellation of the entire deficiency tax assessment issued by the BIR. The CTA ruled that the BIR’s final assessment notice issued against the taxpayer was not a valid formal assessment notice since it did not contain a specific date informing the taxpayer when to pay the alleged deficiency taxes.

Read an August 2018 report [PDF 427 KB] prepared by the KPMG member firm in the Philippines

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