BIR Ruling [UN-197-95]

May 30, 1995 BIR RULING [UN-197-95] Sycip, Gorres, Velayo & Co. P.O. Box 589, Manila Attention: Atty . C . C . Gison Gentlemen : In connection with the internal revenue tax case of your client, Citytrust Banking Corporation, 379 Puyat Avenue, Makati, Metro Manila; involving the following deficiency assessments inclusive of increments thereof in the total amount of P56,588,740.91 under Assessment Notices Nos. FAS-1-84-88-003291, FAS-4-84-88-003292, FAS-4-84-88-003293, FAS-1-84-88-003294, FAS-1-84-88-03295, FAS-5-84-88-003296 and Letter of Demand NO. FAS-1B-84-88-003291-003296 all dated October 28, 1988 for the year 1984, viz: Kind of Tax Year Involved Amount 1) Deficiency Income Tax 1984 P3,870,238.40 2) Deficiency Gross Receipts Tax 1984 1,193.090.52 3) Deficiency Fixed Tax 1984 44,132.88 4) Deficiency Withholding Tax 1984 on deposit substitutes (1-1-84 to 10-14-84) 22,363,791.31 5) Deficiency Withholding Tax 1984 on deposit substitutes (10-15-84 to 12-31-84) 11,292,140.50 6) Deficiency Documentary 1984 Stamp Tax on deposit substitutes 17,825,342.30 TOTAL: P56,588,740.91 ============ please be informed that after a careful study of the facts of this case and the law pertinent thereto, this Office has finally resolved and hereby holds that your client is not liable to the payment of the following assessments: (1) Deficiency fixed tax P44,132.88; (2) Deficiency withholding tax on deposit substitutes (1-1-84 to 10-14-84) P22,363,791.31; (3) Deficiency withholding tax on deposit substitutes (10-15-84 to 12-31-84) P11,292,140.50; and (4) Deficiency documentary stamp tax on deposit substitutes P17,825,342.30 all for the year 1984. Accordingly, the said assessments are hereby withdrawn and cancelled and this case considered closed. However, your client is liable to the payment of the amounts of P3,301,578.19, P1,193,090.52 and P14,625.00 representing deficiency income tax, deficiency gross receipts tax and fixed tax as real estate dealer for the year 1984. In view thereof, you are requested to urge your client to pay the amounts of P3,301,578.19, P1,193,090.52 and P14,625.00 representing deficiency income tax, deficiency gross receipts tax and fixed tax as real estate dealer for the year 1984 within fifteen (15) days from receipt hereof, otherwise this Office will enforce collection thereof through the summary remedies prescribed by law. cd This constitutes the final decision of this Office in this case. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue