BIR wins ₱1-B tax collection case vs Comelec

The Court of Tax Appeals (CTA) has ordered the Commission on Elections (Comelec) to pay the Bureau of Internal Revenue (BIR) more than ₱1 billion in deficiency taxes for 2015.

In a 22-page decision, the court’s Special First Division stated that the poll body failed to submit its protest on time, making the assessment final and executory.

Section 228 of the Tax Code grants taxpayers 30 days within which to file a protest upon receipt of the BIR assessment.

Records showed the Comelec received the Final Assessment Notice (FAN) on Dec. 27, 2018. It filed the protest on Feb. 19, 2019.

The resolution, penned by Associate Justice Catherine T. Manahan, set aside the argument of the Comelec that the tax assessment was received by a casual employee.

Manahan said the FAN attached to its petition for review bore the rubber stamp of the poll body’s finance service department where the employee who was supposed to have received the notice was assigned.

The CTA also rejected the claim of the Comelec that the BIR underreported the deficiency taxes based on the Commission on Audit report.

It explained that the deficiency taxes covered withholding tax on compensation, expanded withholding tax due from Comelec suppliers of goods and services, as well as valueadded and percentage taxes.