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Advocates Philippines
BIR Demands P1.1 Billion In Taxes From Comelec
Photo credit: CTA
The Court of Tax Appeals (CTA) has upheld a demand letter issued by the Bureau of Internal Revenue (BIR) against the Commission on Elections (Comelec), requiring them to pay over P1.1 billion in taxes dating back to 2015. The amount represents taxes that were withheld from Comelec employees and suppliers.
The CTA's decision, which was announced on June 2, denied the petition filed by Comelec and upheld the BIR's final letter of demand, along with the details of discrepancies and final assessment notice issued on December 21, 2018.
According to the BIR, the notices were considered final after 30 days had passed from the receipt of the final assessment notice without any protest being made by Comelec.
Under the law, a taxpayer contesting an assessment must file a protest within 30 days of receiving the final letter of demand or final assessment notice. If additional evidence is to be submitted, a request for reinvestigation must be filed within 60 days of submitting the protest letter.
Comelec argued that the deadline should not have been counted against them since the final assessment notice was received by an unauthorized individual who was not a regular employee of the organization.
However, the court ruled differently, stating that the person who received the BIR documents was stationed at Comelec's Finance Service Department, and Comelec failed to provide sufficient evidence that the employee did not have the authority to receive such documents.
As a result, the Comelec is now required to settle the alleged deficiency assessment of withholding tax on compensation, expanded withholding tax, and withholding on government money payments, including value-added tax and other percentage taxes, amounting to a total of P1,088,333,203.20 for the taxable year 2015.
The CTA's decision, which was announced on June 2, denied the petition filed by Comelec and upheld the BIR's final letter of demand, along with the details of discrepancies and final assessment notice issued on December 21, 2018.
According to the BIR, the notices were considered final after 30 days had passed from the receipt of the final assessment notice without any protest being made by Comelec.
Under the law, a taxpayer contesting an assessment must file a protest within 30 days of receiving the final letter of demand or final assessment notice. If additional evidence is to be submitted, a request for reinvestigation must be filed within 60 days of submitting the protest letter.
Comelec argued that the deadline should not have been counted against them since the final assessment notice was received by an unauthorized individual who was not a regular employee of the organization.
However, the court ruled differently, stating that the person who received the BIR documents was stationed at Comelec's Finance Service Department, and Comelec failed to provide sufficient evidence that the employee did not have the authority to receive such documents.
As a result, the Comelec is now required to settle the alleged deficiency assessment of withholding tax on compensation, expanded withholding tax, and withholding on government money payments, including value-added tax and other percentage taxes, amounting to a total of P1,088,333,203.20 for the taxable year 2015.
Jun 6, 2023
