Republic of the Philippines, represented by the Bureau of Internal
Revenue v. First Gas Power Corporation
GR No. 214933
February 15, 2022
Whether the deficiency tax assessments for taxable years 2000 and 2001 issues by petitioner against respondent are valid.
The deficiency tax assessments were not valid. The period to assess respondent for deficiency income tax for taxable year 2000 has already prescribed because the Waivers issued to extend the period to assess were not valid. The dates of acceptance by petitioner were not indicated in the Waivers. The failure to comply with any of the requisites for a waiver renders such waiver defective and ineffectual. Thus, the FAN and the Formal Letter of Demand, which assessed respondent for deficiency income tax for taxable year 2000 are invalid because they were issued beyond the three-year prescriptive period.
The court also found that the FAN and the Formal Letter of Demand which assessed respondent for deficiency income tax for the taxable year 2002 are also not valid because the assessments did not indicate therein a specific date or period within which the tax liabilities shall be paid by respondent.
