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The Court of Tax Appeals (CTA) has denied the petition filed by Mansion Maintenance Co., Inc. which sought the cancellation of the P1.8 million warrant of distraint and/or levy (WDL) issued by the Bureau of Internal Revenue (BIR) in 2020.
On July 21, 2020, the BIR issued a formal letter of demand (FLD) against Mansion Maintenance, a service provider, for deficiency income tax of P1,884,806.34, inclusive of interests.
On July 23, 2020, Mansion Maintenance asked the BIR to set aside the FLD and assessment notice. However, on March 1, 2021, the BIR issued a WDL for the amount assessed.
The firm filed a petition before the CTA on March 24, 2021 and argued that the assessment was issued beyond the prescriptive period and that the WDL was prematurely issued and, thus, void.
In resolving the issue, the CTA said that the protest against the FLD was not a valid protest.
It pointed out that the tax assessment issued by the BIR may be protested administratively within 30 days upon receipt by filing either a request for reconsideration or request for reinvestigation.
It noted that Mansion Maintenance's protest letter dated July 23, 2020 is considered void so it cannot be considered a valid protest. It added that the petition for review was also premature such that the court has no jurisdiction over it.
"Wherefore, premises considered, the present Petition for Review is dismissed for lack of jurisdiction as regards the FLD; and, denied for lack of merit as regards the WDL No. RR8B-21-02-19-00013 dated March 1, 2021," the CTA ruled.
The 17-page decision was written by Associate Justice Corazon G. Ferrer-Flores with the concurrence of Associate Justices Ma. Belen M. Ringpis-Liban and Maria Rowena Modesto-San Pedro.
