BIR Ruling

November 29, 1996 Mr. Pedro Guerrero 3406 Adora Street 1200 Makati City, Metro Manila S i r : This refers to your request for reconsideration of our assessment in the aggregate amount of P185,282.57 representing deficiency income, expanded withholding and business taxes for 1987 under Assessment Nos. 012033-87 and 13-414-8713-91-132. You are particularly objecting to the imposition of the P40,266.57 business tax on the ground that in 1987, you filed your income tax return only to comply with the travel requirements of the Australian Embassy. Allegedly, your business suffered reverses in the past and became dormant subsequently. In reply, please be informed that after a careful study of the facts of your case and the laws and jurisprudence applicable thereto, we find your request to be without merit. In a long line of cases, the Supreme Court ruled that "an assessment is prima facie presumed correct and made in good faith; the taxpayer has the duty of proving otherwise. [Bonifacio Sy Po vs. CTA, GR No. 81446, August 1988]. Stated differently, in contesting an assessment the taxpayer must present proofs to substantiate his claim. We searched in vain the docket of your case for any evidence or document that will support your claim. We observed that the Financial Statement you have prepared does not bear the signature of a certified public accountant. Unfortunately, we cannot appreciate in your favor your 1987 Financial Statement because it failed to comply with the requirements of law that it must be prepared and/or verified by an independent certified public accountant. Under the law of evidence it is self-serving, hence, inadmissible. Moreover, Section 266 of the Tax Code provides that, "Any declaration, return and other Statements required under this Code, shall, in lieu of an oath, contain a written statement that they are made under the penalties prescribed for perjury under the Revised Penal Code". In this regard, please be forewarned that income tax returns must contain only true statements of your income, otherwise, you can be held liable under the aforesaid section of the Tax Code. In view of the foregoing, your request for reconsideration has to be, as it is hereby DENIED. You are therefore requested to pay the aggregate amount of P185,282.57 representing deficiency income, expanded withholding and business tax for 1987, plus interest that may have accrued thereon, to the Revenue District Office nearest your place of business within ten (10) days from receipt thereof, in order that this case may be closed and terminated. cdtech This constitutes the final decision of this Office on the matter. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue