CIR v. First Life Financial Co., Inc.

 

CIR v. First Life Financial Co., Inc.

CTA EB NO. 2263

Doctrine:

“Any re-assignment/transfer of cases to another RO( s ), and  revalidation of L/As which have already expired, shall require the issuance of a new L/A, with the corresponding notation thereto, including the previous L/A number and date of issue of said L/As.”

Facts:

Before the Court En Bane is a PETITION FOR REVIEW  ("Petition"), filed through registered mail on 6 July 2020, with respondents' COMMENT AND OPPOSITION (to the Petition for Review dated 3 July  2020) ("Comment" ). Respondent FIRST LIFE FINANCIAL CO., INC. is a duly registered  domestic corporation with principal address at First Life Center, 174 Salcedo  Street, Legaspi Village, Makati City. It is engaged in the business of providing  life insurance to its clients.

Issue:

Whether or not RMO No. 43-90 is still applicable to the present NIRC.

Held: 

Yes. Despite being issued earlier than the law it seeks to implement, RMO No. 43-90 is still applicable to the present NIRC. This was categorically declared by the Supreme Court in Commissioner of Internal Revenue v. McDonald's Philippines Realty Corp. ("McDonald's Case''). "Section D(5) of RMO No. 43-90 dated September 20, 1990 

provides:  Any re-assignment/transfer of cases to another RO( s ), and  revalidation of LIAs which have already expired, shall require the  issuance of a new L/A, with the corresponding notation thereto,  including the previous L/A number and date of issue of said Ll  As The above provision expressly and specifically requires the issuance  of a new LOA if revenue officers are reassigned or transferred to other  cases. The provision involves the following two separate phrases: 'reassignment/transfer of cases to another RO(s)', on the one hand, and 'revalidation of LIAs which have already expired', on the other hand. The occurrence of one, independently of the other, requires the issuance of a new LOA. The new LOA must then have a corresponding relevant notation, including the previous LOA number and date of issue of the said LOAs.