BIR Ruling [UN-137-94]

April 12, 1994 BIR RULING [UN-137-94] Forte Realty Corporation 5th Floor, King's Court II Bldg. 2129 Pasong Tamo Street Makati, Metro Manila Attention: Mr . Emmanuel V . Barbin VP-Finance Gentlemen : This refers to your letter dated November 27, 1991 protesting against the assessment of this Office involving the amount of P695,993.61 as deficiency income tax, inclusive of surcharge and interest for the taxable year 1987, under Assessment No. 00812-87 dated April 12, 1991, on the ground that you did not receive the said notice of assessment, and that the period of prescription expired on April 15, 1991. Our records disclosed that the said assessment notice was sent to you by registered mail on April 13, 1991 at your address at 150 Legaspi St., Legaspi Village Makati, as indicated on your tax return; that your company changed address from 150 Legaspi St., Legaspi Village, Makati, Metro Manila to 5th Floor, King's Court II Bldg., 2129 Pasong Tamo St., Makati, Metro Manila apparently without formal notice to this Office; that a demand letter dated October 11, 1991 by this Office for the payment of the aforesaid tax deficiency was received by your company on October 31, 1991 at your present address. cdtech In reply, please be informed that your aforesaid income tax liabilities for the taxable year 1987 still stands and collectible for the following reasons: a) This Office has until April 13, 1994 to collect your aforesaid 1987 deficiency income tax liability from the time the Assessment Notice No. 00812-87 was mailed (registered) to you on April 13, 1991 by this Office; (Sec. 223 (c) Tax Code, as amended) b) The running of the prescriptive period is deemed suspended when the taxpayer cannot be located in the address given by him in the return filed upon which a tax is being assessed or collected. (Sec. 224, Tax Code as amended) A deficiency tax assessment is deemed made when notice to that effect is released, mailed or sent within the prescriptive period by the Commissioner of Internal Revenue, even if received by the taxpayer after its expiration. Section 203 of the Tax Code, as amended, fixing the three year period of limitations for assessment does not require that notice thereof be received by the taxpayer within the period of three (3) years reckoned from the filing of his/its tax return. (CIR vs. Bautista, et. al., GR No. L-1223a and 12259, May 27, 1959; Republic vs. De La Rama, 18 SCRA 861). In view thereof, your protest has to be, as it is hereby denied for lack of legal basis. You are therefore requested to pay the total amount of P695,993.61 representing deficiency income tax for the year 1987 within fifteen (15) days from receipt hereof, through the Law Division, of this Office, otherwise we will enforce the collection thereof through the summary remedies prescribed by law. This constitute the final decision of this Office on the matter. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue