CTA voids ₱1.65-B deficiency taxes levied against Manila

The Court of Tax Appeals (CTA) has voided for late assessment the ₱1.65-billion alleged tax deficiencies levied by the Bureau of Internal Revenue (BIR) against the City of Manila for land purchase in 2008.

- By CZARINA NICOLE ONG KI

In a decision handed down by its second division, the CTA granted the petition of Mayor Francisco "Isko Moreno" Domagoso who argued that the assessment was made beyond the prescriptive period.

The CTA cited Section 203 of the National Internal Revenue Code (NIRC) which states that the BIR has three years to assess a taxpayer, counted from either the last day prescribed by law for the filing of a return or the day of the return's filing when the same is filed beyond the period prescribed by law.

In this case, the CTA said the BIR issued the Formal Letter of Demand/ Final Assessment Notice (FLD/FAN) on Dec. 17, 2018 and clearly beyond the three-year prescriptive period.