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    591-A PNZ Marketing v. CIR

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    Eloise Coleen Sulla Perez
    1) The BIR sent PNZ Marketing an assessment notice for alleged income tax deficiency in 1994 but the notice only showed adjustments to income and provided no legal or regulatory basis. 2) The issue is whether the BIR's assessment is void for lacking a legal or regulatory basis. 3) The court ruled that while the assessment notice was vague, the subsequent demand letter cured this issue by providing the legal and factual basis relied on by the BIR for the assessment.

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    591-A PNZ Marketing v. CIR

    Uploaded by

    Eloise Coleen Sulla Perez
    46 views1 page
    1) The BIR sent PNZ Marketing an assessment notice for alleged income tax deficiency in 1994 but the notice only showed adjustments to income and provided no legal or regulatory basis. 2) The issue is whether the BIR's assessment is void for lacking a legal or regulatory basis. 3) The court ruled that while the assessment notice was vague, the subsequent demand letter cured this issue by providing the legal and factual basis relied on by the BIR for the assessment.

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    1) The BIR sent PNZ Marketing an assessment notice for alleged income tax deficiency in 1994 but the notice only showed adjustments to income and provided no legal or regulatory basis. 2) The issue is whether the BIR's assessment is void for lacking a legal or regulatory basis. 3) The court ruled that while the assessment notice was vague, the subsequent demand letter cured this issue by providing the legal and factual basis relied on by the BIR for the assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views1 page

    591-A PNZ Marketing v. CIR

    Uploaded by

    Eloise Coleen Sulla Perez
    1) The BIR sent PNZ Marketing an assessment notice for alleged income tax deficiency in 1994 but the notice only showed adjustments to income and provided no legal or regulatory basis. 2) The issue is whether the BIR's assessment is void for lacking a legal or regulatory basis. 3) The court ruled that while the assessment notice was vague, the subsequent demand letter cured this issue by providing the legal and factual basis relied on by the BIR for the assessment.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    GOMEZ

    CASE NO. 591-A


    Issuance of Formal Assessment Notice (FAN) and Letter of Demand
    PNZ Marketing v. CIR
    CTA Case No. 5726, December 14, 2001

    FACTS: BIR sent PNZ Marketing (Petitioner) assessment notice for


    alleged income tax deficiency for the year 1994, based on adjustments of
    Petitioner’s income; in the said notice, only a breakdown of the alleged
    adjustment of income was shown by the BIR and no basis as to law and
    pertinent regulations. Petitioner then filed a protest but went
    unheeded. Thus, this present petition.

    ISSUE: Whether or not the assessment made by the BIR is void for
    having no legal or regulatory basis to support it.

    RULING: Yes but this was CURED. The assessment notice, while
    vague at first glance is subsequently cured by the demand letter
    which shows the legal and factual basis relied upon by the BIR in
    issuing the assessment. The demand letter, as thus worded contains
    the reasons why a deficiency income tax assessment was issued against
    the Petitioner.

    If the assessment notice is deemed insufficient insofar as compliance


    with Section 228 (protesting of assessment) of the Tax Code is concerned,
    such insufficiency can be cured, if the demand letter can show the legal
    and factual bases relied upon in the issuance of the assessment which
    the assessment notice failed to detail.

    The rule requiring the BIR to inform the taxpayer in writing of the laws
    and the facts on which the assessment is made runs parallel to the due
    process clause for it is believed that it is only through a detailed
    appraisal of its basis that the taxpayer may be able to dispute the
    imposition or agree with it.

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