Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    Republic of The Philippines Court of Tax Appeals Quezon City

    Uploaded by

    Kevin Patrick Magalona Degayo
    This is a petition filed by Delish Eatery assailing the final tax assessment issued by the Bureau of Internal Revenue (BIR) for tax year 2015. Delish Eatery argues that the assessment is void because BIR failed to provide the legal and factual bases for the assessment in violation of the National Internal Revenue Code. Specifically, BIR did not explain how it arrived at the conclusion that Delish Eatery had undeclared sales and income from illegal drug trading. Delish Eatery also argues that the 50% surcharge imposed was invalid and that BIR failed to justify disallowing certain business expenses as deductions. Delish Eatery requests that the tax court annul the BIR assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Republic of The Philippines Court of Tax Appeals Quezon City

    Uploaded by

    Kevin Patrick Magalona Degayo
    40 views6 pages
    This is a petition filed by Delish Eatery assailing the final tax assessment issued by the Bureau of Internal Revenue (BIR) for tax year 2015. Delish Eatery argues that the assessment is void because BIR failed to provide the legal and factual bases for the assessment in violation of the National Internal Revenue Code. Specifically, BIR did not explain how it arrived at the conclusion that Delish Eatery had undeclared sales and income from illegal drug trading. Delish Eatery also argues that the 50% surcharge imposed was invalid and that BIR failed to justify disallowing certain business expenses as deductions. Delish Eatery requests that the tax court annul the BIR assessment.

    Original Description:

    AS

    Original Title

    Amended Pleading2

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This is a petition filed by Delish Eatery assailing the final tax assessment issued by the Bureau of Internal Revenue (BIR) for tax year 2015. Delish Eatery argues that the assessment is void because BIR failed to provide the legal and factual bases for the assessment in violation of the National Internal Revenue Code. Specifically, BIR did not explain how it arrived at the conclusion that Delish Eatery had undeclared sales and income from illegal drug trading. Delish Eatery also argues that the 50% surcharge imposed was invalid and that BIR failed to justify disallowing certain business expenses as deductions. Delish Eatery requests that the tax court annul the BIR assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views6 pages

    Republic of The Philippines Court of Tax Appeals Quezon City

    Uploaded by

    Kevin Patrick Magalona Degayo
    This is a petition filed by Delish Eatery assailing the final tax assessment issued by the Bureau of Internal Revenue (BIR) for tax year 2015. Delish Eatery argues that the assessment is void because BIR failed to provide the legal and factual bases for the assessment in violation of the National Internal Revenue Code. Specifically, BIR did not explain how it arrived at the conclusion that Delish Eatery had undeclared sales and income from illegal drug trading. Delish Eatery also argues that the 50% surcharge imposed was invalid and that BIR failed to justify disallowing certain business expenses as deductions. Delish Eatery requests that the tax court annul the BIR assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    REPUBLIC OF THE PHILIPPINES

    COURT OF TAX APPEALS


    QUEZON CITY

    DELISH EATERY
    Petitioner,
    -versusMANOG SUKOT BUWIS,
    Regional Director,
    Bureau of Internal Revenue
    Respondent.
    x------------------------------------x

    PETITION FOR REVIEW

    COMES NOW, herein the Petitioner, through the Undersigned Counsels, and unto
    this Honorable Court, most respectfully submit this Petition, to wit:
    THE PARTIES
    The Petitioner Delish Eatery, is a partnership formed and organized under
    the laws of the Republic of the Philippines, with business address of 14th Lacson
    Street, Bacolod City.
    The Respondent Manog Sukot Buwis, is the Regional Director of the Bureau
    of Internal Revenue, located at Bacolod City, the office mandated by law with the
    assessment and collection of all national internal revenue taxes, fees and charges,
    and the enforcement of all forfeitures, penalties and fines connected therewith
    including the execution of judgments in all cases decided in its favor by the Court
    of Tax Appeals and the ordinary courts.

    NATURE OF THE CASE


    This is a Petition for Review filed by the Petitioner, Delish Eatery, assailing
    the Final Notice of Assessment for Taxable Year 2015 issued by the Regional
    Director Manog Sukot Buwis on August 1, 2016.

    STATEMENT OF THE FACTS


    1. The Petitioner Delish Eatery, is a partnership formed and organized under
    the laws of the Republic of the Philippines, with business address of 14th
    Lacson Street, Bacolod City.
    2. The BIR through the respondent, has issued a report of investigation upon
    Petitioner on its tax compliance for taxable year 2015 through a Formal
    Letter of Demand or Final Notice of Assessment.
    3. The findings show due and collectible, the amount of amount of one
    hundred three million one hundred seventy three thousand pesos (Php
    103,173,00.00), representing deficiency income and expanded withholding
    tax. Herein as ANNEX A.
    4. A protest filed by the petitioner was denied with finality by the
    Commissioner of Internal Revenue.
    5. Petitioners now challenges the income tax assessment issued by the
    respondent.

    ISSUES ASSAILED BY PETITIONER


    1. WHETHER OR NOT the Final Assessment Notice dated August 1, 2016
    issued by the BIR to Delish Eatery is valid and correct
    2. WHETHER OR NOT the surcharge of fifty percent (50%) amounting to
    thirty million three hundred forty five thousand (Php 30,345,000.00), is valid
    and correct

    LEGAL ARGUMENTATION
    1. Whether or not the Final Assessment Notice dated August 1, 2016 as well as
    the Details of Discrepancy for Taxable Year 2015 issued by the BIR to
    Delish Eatery is valid and correct
    Based on Sec. 228 of the National Internal Revenue Code under Protesting of
    Assessment, when the Commissioner or his duly authorized representative finds
    that proper taxes should be assessed, he shall first notify the taxpayer of his
    findings. The taxpayers shall be informed in writing of the law and the facts on
    which the assessment is made; otherwise, the assessment shall be void.
    The case of CIR v. Enron Subic Power Corp. notes that, In [this] case, [the
    CIR] merely issued a formal assessment and indicated therein the supposed tax,
    surcharge, interest and compromise penalty due thereon. The Revenue Officers of
    the [the CIR] in the issuance of the Final Assessment Notice did not provide Enron
    with the written bases of the law and facts on which the subject assessment is
    based. [The CIR] did not bother to explain how it arrived at such an assessment.
    Moreso, he failed to mention the specific provision of the Tax Code or rules and
    regulations which were not complied with by Enron.
    In the case of Delish Eatery, the BIR merely itemized the computation for the
    2015 Income Tax Payable without stating the laws and the facts on which the
    assessment was made. Furthermore, there was no supporting basis for the inclusion
    of undeclared sales to ABC Beer Corp., XYZ Bottlers, and 123 Milling Corp., per Third
    Party Information in addition to the undisclosed sale of shabu as taxable income.
    In view of the absence of a fair opportunity for Delish Eatery to be informed of
    the legal and factual bases of the assessment against it, the assessment in question
    should be deemed void.
    Pertaining to the subject of the Third Party Information in assessing the tax
    deficiency, the BIR also failed to state the legal basis of the Commissioner as
    against Delish Eatery. The respondent did not present any legal and factual bases in
    the inclusion of undeclared sale of shabu for the taxable year of 2015 amounting
    to Php100,000,000. No evidence was supplied to justify its inclusion in the income
    of the petitioner.

    On the matter of the expenses claimed on Cost of Services and Comm. Light &
    Water, disallowing such as a deduction, no law nor fact to which the disallowance
    was based on was ever mentioned by the respondent in its final assessment notice
    and the details of discrepancy. Absent any legal and factual evidence to support
    such disallowance, the same shall be invalid.
    Therefore, the 2015 Tax Deficiency Assessment issued by the BIR to Delish
    Eatery is in clear violation of Sec. 228 of the National Internal Revenue Code and
    shall be deemed void.

    2. WHETHER OR NOT the surcharge of fifty percent (50%) amounting to


    thirty million three hundred forty five thousand (Php 30,345,000.00), is valid
    and correct
    sajdhsajkhfajfa

    VERIFICATION AND CERTIFICATION

    REPUBLIC OF THE PHILIPPINES


    Province of Negros Occidental
    City of Bacolod
    x-----------------------x

    We, Delish Eatery, a partnership organized and existing under and by virtue of the
    laws of the Philippines, with principal place of business at 14th Lacson Street, Bacolod City,
    Philippines, after being sworn in accordance with law, hereby depose and say:
    That we are the petitioners in the above-entitled case; That we have caused
    the preparation of the above petition and we have read the same and know the
    contents thereof; That the allegations contained therein are true and correct of our
    own personal knowledge.
    That we further certify that: (a) we have not theretofore commenced any
    other action or proceeding or filed any claim involving the same issues or matter
    in any court, tribunal, or quasi-judicial agency and, to the best of our knowledge,
    no such action or proceeding is pending therein; (c) if we should thereafter learn
    that the same or similar action or proceeding has been filed or is pending before the
    Supreme Court, the Court of Appeals, or any other tribunal or quasi-judicial
    agency, we undertake to report such fact within five (5) days therefrom to the court
    or agency wherein the original pleading and sworn certification contemplated
    herein have been filed.
    IN WITNESS WHEREOF, we have hereunto set our hands this 19 October
    2016 at Bacolod City, Negros Occidental, Philippines.

    _______________________
    (Sgd) AFFIANT

    PRAYER

    WHEREFORE, it is most respectfully prayed that the income tax assessment


    (ANNEX A) issued to Delish Eatery in the amount of one hundred three million
    one hundred seventy three thousand pesos (Php 103,173,00.00) be annulled.
    Other reliefs deemed just and equitable under the premises are likewise
    prayed for.
    Most Respectfully Submitted.
    Bacolod City, Philippines. October 19, 2016.

    Atty. Mary Anne Caete Atty. Mary Jo Decolongon Atty. Kevin Patrick Degayo
    Counsels for the Plaintiffs
    28/F Suite 2800-2804 THE TRUMP TOWER
    Upper McKinley Hill, Bonifacio Global City,
    Taguig, Metro Manila

    You might also like