Effectivity of Periods Referred to in Section 228 of the Tax Code of 1997

February 19, 1998 BIR RULING NO. 022-98 228-000-00-22-98 Atty. Estelito P. Mendoza 4th Floor, Dynavision Bldg. 108 Rada St., Legaspi Village Makati City, Metro Manila S i r : This refers to your letter dated January 29, 1998 requesting on behalf of your client, Fortune Tobacco Corporation (Fortune), for ruling regarding the effectivity of periods referred to in Section 228 of the Tax Code of 1997, for purposes of filing request for reconsideration or reinvestigation and submission of all relevant supporting documents. You state that on August 24, 1993, a deficiency ad valorem tax, value-added and income tax assessment dated August 13, 1993, for the year 1992 in the amount of P7,685,942,221.66 was served on Fortune by the Bureau of Internal Revenue; that on September 17, 1993, Fortune filed with the BIR a request for reconsideration/protest of the assessment; and that the aforesaid protest, which was filed pursuant to Section 229 of the National Internal Revenue Code, has been pending in the BIR since then. LLphil Based on the foregoing, you are requesting our opinion on the following: "1. Does the above-quoted new provision in Section 228 of the Tax Reform Act of 1997, which requires submission of all relevant supporting documents within sixty (60) days from filing of the protest, apply to our clients aforementioned request for reconsideration/protest filed with the BIR on September 17, 1993? "2. If the aforesaid new provision applies to Fortune, from what date will the sixty (60) day period within which to submit the relevant supporting documents be counted, considering that the request for reconsideration/protest was filed prior to the date of effectivity of R.A. No. 8424?" dctai In reply, please be informed that since Republic Act No. 8424, otherwise known as the Tax Reform Act of 1997 took effect on January 1, 1998, the sixty (60)-day and the one hundred eighty (180)-day periods referred to in Section 228 of the Tax Code of 1997 shall take effect and/or cover only assessments issued on or after January 1 , 1998 . Accordingly, the deficiency ad valorem, value-added and income tax assessment issued against Fortune Tobacco Corporation on August 13, 1993 in the aforesaid amount of P7,685,942,221.66 shall be governed by Revenue Regulations No. 12-85 and other prior pertinent issuances. Answer to question No. 2 is deemed unnecessary in view of the foregoing answer to your question No. 1. LLphil Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue