CTA orders Comelec: Pay P1 billion in back taxes
MANILA, Philippines — The Court of Tax Appeals (CTA) has ruled that the Commission on Elections (Comelec) is liable for P1 billion in unpaid tax obligations to the Bureau of Internal Revenue (BIR) in 2015.
In a 22-page decision promulgated on June 2, the tax court’s Special First Division denied the Comelec’s petition seeking to nullify the BIR’s December 2019 decision affirming a Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) both issued by then Revenue Region No. 6 director Romulo Aguila Jr. on Dec. 21, 2018.
The BIR assessed that the Comelec had a total of P1,103,061,926.14 unpaid witholding tax obligation in 2015.
The tax court sided with the BIR that the assessment had become final and executory as the Comelec failed to file a protest within 30 days under Section 228 of the National Internal Revenue Code.
The court said the record also showed that the FAN and FLD were received by Jai Conde of the Comelec Finance Service Department on Dec. 27, 2018.
However, the poll body filed its letter of protest and supplemental letter of protest to the BIR only on Feb. 19 and Feb. 28, 2019, respectively.
“The petitioner’s failure to file its protest letters on time renders the FLD /FAN executory and demandable,” the CTA’s decision read.
The tax court also found no merit in the Comelec’s claim of “dicrepancy” between the BIR’s FLD and its Final Decision on Disputed Assessment (FDDA) issued on March 22, 2019.
Comelec spokesman John Rex Laudiangco said they would file an appeal with the CTA. – Evelyn Macairan
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