GR 263811; (November, 2024) (Digest)
G.R. No. 263811 , November 26, 2024
COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. FORT 1 GLOBAL CITY CENTER, INC., RESPONDENT.
FACTS
The Bureau of Internal Revenue (BIR) issued deficiency tax assessments against Fort 1 Global City Center, Inc. (FGCCI) for taxable years 2009 and 2012. For 2009, after a Preliminary Assessment Notice (PAN) and Final Assessment Notice (FAN), the BIR issued a Final Decision on Disputed Assessment (FDDA) dated October 13, 2016. For 2012, the BIR issued a PAN and FAN, but did not act on FGCCI’s protest. FGCCI filed Petitions for Review before the Court of Tax Appeals (CTA), arguing the assessments were void as the assessment notices (LOA, PAN, FAN, FDDA) were served at wrong addresses (30th Street, Bonifacio Blvd. for 2009 and 32nd Street, corner Boni Avenue for 2012) and to persons not shown to be authorized, not at its principal address per its 2016 General Information Sheet (Unit 2C-B, FPS Building, 1st Avenue, corner 30th Street). FGCCI claimed it learned of the notices from an uninterested third party. The CIR argued service was proper to FGCCI’s registered addresses in the BIR’s Integrated Tax System and that FGCCI’s filing of protests constituted receipt. The CTA Division cancelled the assessments, finding the BIR failed to prove service complied with Revenue Regulation No. 12-99 and that FGCCI’s protest did not cure the due process violation. The CTA En Banc, despite some discussion on substantive merits, ultimately affirmed the Division’s decision due to a lack of the required affirmative votes, reiterating the due process violation.
ISSUE
Whether the deficiency tax assessments against FGCCI for taxable years 2009 and 2012 are void due to invalid service of the assessment notices.
RULING
The Supreme Court DENIED the CIR’s Petition for Review on Certiorari. The Court upheld the CTA En Banc’s affirmation of the CTA Division’s decision, which cancelled the deficiency tax assessments. The ruling is based on the failure of the BIR to comply with the due process requirements for service of assessment notices under Revenue Regulation No. 12-99. The BIR did not sufficiently prove that the notices were sent to FGCCI’s registered address or received by the taxpayer or its duly authorized representative. The protest filed by FGCCI does not cure this fundamental defect in the assessment process. The assessments were therefore declared void.