THE COURT of Tax Appeals (CTA) has cleared IBMS Technology Phils. Corp. of P35.35 million in tax liabilities, as it ruled the Bureau of Internal Revenue (BIR) had failed to issue a valid formal assessment notice (FAN) in 2015.
The tax agency鈥檚 assessment notice suffered from 鈥渋ncurable defect鈥 because it did not specify the amount of the tax and when it was due, the tax court鈥檚 Special Third Division said in a 20-page decision promulgated on March 15.聽
鈥淲ithout a valid formal assessment notice, the assessment that sprung from it is inescapably void,鈥 Associate Justice Corazon Ferrer-Flores said in the ruling.
Also, the court ruled that the petitioner is not liable to pay the subject compromise penalties. 鈥淪ince the subject assessments are void, petitioner cannot likewise be held liable to the compromise penalty in the amount of P70,000,鈥 it said. 鈥 Chloe Mari A. Hufana
