Philippines Court of Tax Appeals Issues Decision Clarifying Validity of Assessment for Alleged VAT Deficiency

The Philippine Court of Tax Appeals Nov. 18 issued a decision in CTA EB No. 2877, clarifying the validity of an assessment for alleged VAT deficiency. The taxpayer, a sole proprietor of a racing sales center, challenged the collection of deficiency VAT and penalties, arguing that the Commissioner of Internal Revenue (CIR) failed to collect the taxes within the three-year prescriptive period. The CIR contended that tax assessments enjoy the presumption of correctness and that the deficiency VAT assessment should stand because the taxpayer failed to refute it. On appeal, the Court of Tax Appeals, en banc, found that: 1) ...