Tuesday, June 17, 2008
Tax notes: Non-issuance of pre-assessment notice
ALTHOUGH a pre-assessment notice (PAN) is required to be issued to a taxpayer, failure on the part of the Bureau of Internal Revenue (BIR) to issue the PAN cannot be considered a violation of the taxpayer’s right to due process.
A PAN may be required but it is not indispensable. This finds support in the fact that a taxpayer is not obligated to protest a PAN. Even the failure of the taxpayer to protest a PAN does not result in the finality of the assessment.
(Bank of the Philippine Islands versus Commissioner of Internal Revenue, CTA Case No. 7397, April 9, 2008)
What the law demands is the issuance of a final assessment notice (FAN), which should be formally protested. As long as the taxpayer is given the opportunity to explain his side, the requirements of due process are satisfactorily met. Hence, if the taxpayer received a PAN, which he was able to protest, his right to due process was properly protected and observed.
(Source: Punongbayan & Araullo)
For Bisaya stories from Cebu. Click here. (June 17, 2008 issue)
Write letter to the editor.Click here.
|
