CTA orders P62M tax refund for gas supplier over unauthorized assessment
The Court of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to issue a P62.4-million tax refund in favor of industrial gas supplier Linde Philippines, Inc.
In a recent 26-page decision, the court’s Special 3rd Division declared the assessment for final withholding tax and value-added tax deficiencies for the year 2007 invalid.
This was because the assessment was made by revenue officers who were not authorized by a Letter of Authority (LOA).
The revenue officers who conducted the assessment only had a memorandum referral, and the LOA actually listed other revenue officers.
“Not having the authority to conduct audit of petitioner through a valid LoA, the resulting assessment in the PAN (preliminary assessment notice) and FAN (final assessment notice), are deemed void,” read the decision penned by Associate Justice Esperanza Fabon-Victorino.
“Any assessment arising from the conduct of audit examination of a taxpayer’s books of account by a BIR examiner who is not duly authorized to do so is a complete nullity. A void assessment bears no valid fruit,” it stressed.