Ten-Four Readymix Concrete, Inc. v. CIR

 

Ten-Four Readymix Concrete, Inc. v. CIR

CTA EB NO. 2311

January 25, 2022

Doctrine:

A taxpayer has two (2) alternative remedies from the denial of its protest by the CIR's authorized representative. First, a taxpayer can file a request for reconsideration with the CIR within 30 days from the denial's receipt. Second, the taxpayer may directly elevate its claim within the same period to this Court. The taxpayer's failure to exercise either remedy within such 30-day period shall make the assessment final and executory.

Facts:

Before the Court En Banc is a Petition for Review pursuant to Section 3(bY, Rule 8 of the Revised Rules of the Court of Tax Appeals (RRCTA), filed by petitioner Ten-Four Readymix Concrete, Inc. (petitioner/TFRCI). It seeks the reversal of the Resolutions dated 16 January 2020 and I5 June 20204 (assailed Resolutions) of the First Division.

Issue:

Whether or not the taxpayer may either file a request for reconsideration or directly elevate its claim to the Court.

Held: 

Yes. Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-13states: 3.1.4- Disputed Assessment. - The taxpayer or its authorized representative or tax agent may protest administratively against the aforesaid FLO/FAN within thirty (3o) days from date of receipt thereof. The taxpayer protesting an assessment may file a written request for reconsideration or reinvestigation defined as follows: (i) Request for reconsideration - refers to a plea of reevaluation of an assessment on the basis of existing records without need of additional evidence. It may involve both a question of fact or of law or both. (ii) Request for reinvestigation - refers to a plea of reevaluation of an assessment on the basis of newly discovered or additional evidence that a taxpayer intends to present in the reinvestigation. It may also involve a question of fact or of law or both. For requests for reinvestigation, the taxpayer shall submit all relevant supporting documents in support of his protest within sixty

(60) days from date of filing of his letter of protest, otherwise, the assessment shall become final. The term "relevant supporting documents" refer to those documents necessary to support the legal and factual bases in disputing a tax assessment as determined by the taxpayer. The sixty (6o)-day period for the submission of all relevant supporting documents shall not apply to requests for reconsideration. Furthermore, the term "the assessment shall become final" shall mean the taxpayer is barred from disputing the correctness of the issued assessment by introduction of newly discovered or additional evidence, and the FDDA shall consequently be denied.


From the foregoing rules, it is clear that a taxpayer has two (2) alternative remedies from the denial of its protest by the CIR's authorized representative. First, a taxpayer can file a request for reconsideration with the CIR within 30 days from the denial's receipt. Second, the taxpayer may directly elevate its claim within the same period to this Court. The taxpayer's failure to exercise either remedy within such 30-day period shall make the assessment final and executory.


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