CTA rejects labor company’s appeal to write off tax debts

THE Court of Tax Appeals (CTA) has dismissed Service Resources, Inc.’s appeal to void its default income taxes worth 9.5 million pesos for tax years 2009, 2010 and 2011.

In a ruling dated June 3 and made public on June 7, the CTA’s Second Division ruled that the labor company failed to meet the 30-day deadline for filing employment disputes. assessment provided for by the Local Authorities Code of 1991.

“In sum, since petitioner did not timely file an appeal to the court of competent jurisdiction within 30 days of the expiration of time for respondent city treasurer to decide the protest, the first notice of ‘assessment has become conclusive and without appeal,’ according to a copy of the decision written by CTA Associate Judge Jean Marie A. Bacorro-Villena.

“Considering that the first opinion has already become final, the tribunal does not find it necessary to address the other arguments raised by the petitioner (Service Resources).”

The petitioner is an independent contractor registered with the Department of Labor and Employment (DoLE), whose office is based in Pasig City.

The respondent is the Treasurer of the City of Pasig, which issued a tax assessment to the company for underreporting its gross sales for the years 2008 through 2010.

Under the Local Government Code, a taxpayer has 30 days to appeal a denial of protest or dispute to a court of “competent jurisdiction”, otherwise the assessment will be rendered conclusive and final.

The labor company argued that the appraisals were issued arbitrarily without properly examining its books of accounts and other records. He added that the assessment should have been canceled for the city treasurer’s blatant disregard of the guidelines.

The Pasig City Treasurer said the tax assessments were made in good faith and the onus was on the taxpayer to prove they were not required to pay deficiency taxes.

“It should be noted that even if we have to consider the merits of the applicant’s filing of the previous application, the outcome of the case would not be different since the applicant has also failed to comply with the provisions of the 195 of the Local Authorities Code,” the tax court said.

“Similarly, the Petitioner’s posture appears to be a mere afterthought following the dismissal of his earlier petition for lack of jurisdiction.” — John Victor D. Ordonez

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