Philippines Court of Tax Appeals Issues Decision Clarifying Validity of Assessments for Alleged Tax Deficiencies

The Philippine Court of Tax Appeals Jan. 19 issued a decision in CTA Case No. 10607, clarifying the validity of assessments for alleged tax deficiencies. The taxpayer, a domestic corporation, challenged the Final Decision on the Disputed Assessment (FDDA) covering income tax (IT), VAT, expanded withholding tax (EWT), withholding tax on compensation (WTC), final withholding tax (FWT), documentary stamp tax (DST), improperly accumulated earnings tax (IAET), and compromise penalties, alleging due process violations, prescription, and erroneous assessments. On appeal, the Court of Tax Appeals, Special Third Division, found that: 1) due process wasn’t violated because the FDDA stated the relevant ...