In a Resolution dated 15 May 2024, the Supreme Court affirmed the decision of the Court of Tax Appeals (“CTA”) to refund Php 17 million to Y&R Philippines, Inc. (“Y&R”).
Y&R was subjected to a Bureau of Internal Revenue audit for taxable year 2007. The Petition initially filed was converted into a refund case when the Commissioner of Internal Revenue (“CIR”) proceeded with garnishment.
Representing Y&R, ACCRALAW successfully proved the absence of authority of the officers to conduct the audit because the revenue officers failed to secure a Letter of Authority after the Letter Notice has served its purpose and the period to issue the assessment had prescribed. On the issue of the propriety of service, the CIR failed to prove that Y&R received the Preliminary Assessment Notice and Final Assessment Notice which were sent to Y&R’s old address despite Y&R’s proper transfer of offices.
ACCRALAW Senior Partner Ruby Rose J. Yusi, Senior Associates Fatima Faye E. Cordova-De Lima and Princess Rexille V. Liboon, and Associate Kevin John B. Lumbre represented Y&R.