Publishing a Portion of the Decision of the Supreme Court in the Case entitled "Surigao Electric Co., Inc. vs. The Honorable Court of Tax Appeals and Commissioner of Internal Revenue", G.R. No. L-25289, dated June 28, 1974

August 8, 1974 REVENUE MEMORANDUM CIRCULAR NO. 54-74 SUBJECT : Publishing a Portion of the Decision of the Supreme Court in the Case entitled "Surigao Electric Co., Inc. vs. The Honorable Court of Tax Appeals and Commissioner of Internal Revenue", G.R. No. L-25289, dated June 28, 1974 TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, the pertinent portion of the decision in the above-entitled case is hereby published: "Prescinding from all the foregoing, we deem it appropriate to state that the Commissioner of Internal Revenue should always indicate to the taxpayer in clear and unequivocal language whenever his action on an assessment questioned by a taxpayer constitutes his final determination on the disputed assessment as contemplated by sections 7 and 11 of Republic Act 1125, as amended. On the basis of this indicium indubitably showing that the Commissioner's communicated action is his final decision on the contested assessment, the aggrieved taxpayer would then be able to take recourse to the tax court at the opportune time. Without needless difficulty, the taxpayer would be able to determine when his right to appeal to the tax court accrues. This rule of conduct would also obviate all desire and opportunity on the part of the taxpayer to continually delay the finality of the assessment and, consequently, the collection of the amount demanded as taxes by repeated requests for recomputation and reconsideration. On the part of the Commissioner, this would encourage his office to conduct a careful and thorough study of every questioned assessment and render a correct and definite decision thereon in the first instance. This would also deter the Commissioner from unfairly making the taxpayer grope in the dark and speculate as to which action constitutes the decision appealable to the tax court. Of greater import, this rule of conduct would meet a pressing need for fair play, regularity, and orderliness in administrative action." Accordingly, in final decisions of disputed assessments, protests, requests for reconsideration, requests for refund or tax credit, etc., the language to be employed should clearly denote the finality of the disposition on the matter which can be stated as follows: This constitutes our final decision on the matter. If you are not agreeable, you may appeal to the Court of Tax Appeals within 30 days from receipt of this letter. All internal revenue officers and others charged with the enforcement of the internal revenue law are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5