CIR v. Jinzai Experts Inc.


CIR v. Jinzai Experts Inc.

CTA EB NO. 2259

February 9, 2022


Whether or not the TVN is equivalent to an LOA which will serve as the authority of the RO to conduct the tax examination of taxpayers relative to their claims for refund.  


No. The Supreme Court, in the recent case of Commissioner of Internal Revenue v. Opulent Landowners, Inc. 14 (Opulent case), emphasizes that the LOA is the document that will satisfy the delegation of authority by petitioner to his representatives of his power to make assessment under the 1997 NIRC, as amended, to wit: " Under prevailing jurisprudence, a LOA is statutorily required under the National Internal Revenue Code in order to clothe revenue officers with authority to examine taxpayers. It is axiomatic that only the revenue officers actually named under the LOA are authorized to examine the taxpayer .... " Thus, a TVN which was nowhere mentioned in the 1997 NIRC, as amended, is not an LOA that vested an authority to RO to conduct tax examination into the financial records of a taxpayer.

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