G.R. No. 168498 – 524 Phil. 524 – 491 SCRA 213 – Taxation Law – Prescription – Appeal to the Court of Tax Appeals
On 5 July 2001, the Commissioner of Internal Revenue (CIR) issued a final assessment notice (FAN) to the Rizal Commercial Banking Corporation (RCBC) demanding a total tax liability of about P100 million. On 20 July 2001 (within the 30 day period from issuance of FAN to file a protest), RCBC filed a protest. The CIR never acted on the protest. On April 30, 2002, RCBC filed an appeal with the Court of Tax Appeals (CTA).
ISSUE: Whether or not RCBC filed a timely appeal.
HELD : No. Under the law, after the lapse of 180 days within which the CIR is supposed to rule on the protest – yet the CIR did not, the taxpayer has 30 days from said lapse to file an appeal with the CTA. In the case at bar, the protest was filed on July 20, 2001. From that date, RCBC had until September 18, 2001 (60 days) to submit supporting documents. There was no showing that RCBC submitted any such documents. But assuming it submitted said documents on September 18, 2001, the 180 day period for the CIR to decide shall commence on that date hence the 180 day period has lapsed on March 17, 2002. Thereafter, RCBC has 30 days to appeal the inaction of the CIR (30 days from the lapse of the 180 day period) or until April 16, 2002. RCBC filed its appeal on April 30, 2002 which was already beyond the 30 day period. In such case, the decision of the CIR indirectly denying the protest by reason of inaction is already final and executory and is no longer appealable.
