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G.R. No. 201530
G.R. No. 201530
Philippine Supreme Court Jurisprudence > Year 2016 > April 2016 Decisions > G.R. No. 215534, April 18, 2016 -
COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION, Respondent.;
G.R. NO. 215557 - LIQUIGAZ PHILIPPINES CORPORATION, Petitioner, v. COMMISSIONER OF INTERNAL
REVENUE, Respondent.:
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G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ
PHILIPPINES CORPORATION, Respondent.; G.R. NO. 215557 - LIQUIGAZ PHILIPPINES CORPORATION,
Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
ChanRobles On-Line Bar Review
SECOND DIVISION
DECISION
MENDOZA, J.:
Presented before us is a novel issue. When may a Final Decision on Disputed Assessment (FDDA) be
declared void, and in the event that the FDD A is found void, what would be its effect on the tax
assessment?
Assailed in these consolidated petitions for review on certiorari filed under Rule 45 of the Rules of Court
are the May 22, 2014 Decision1 and the November 26, 2014 Resolution2 of the Court of Tax Appeals
DebtKollect Company, Inc. (CTA) En Banc which affirmed the November 22, 2012 Decision3 of the CTA Division, Second Division
(CTA Division).
Liquigaz Philippines Corporation (Liquigaz) is a corporation duly organized and existing under Philippine
laws. On July 11, 2006, it received a copy of Letter of Authority (LOA) No. 00067824, dated July 4,
2006, issued by the Commissioner of Internal Revenue (CIR), authorizing the investigation of all internal
revenue taxes for taxable year 2005.4
On April 9, 2008, Liquigaz received an undated letter purporting to be a Notice of Informal Conference
(NIC), as well as the detailed computation of its supposed tax liability. On May 28, 2008, it received a
copy of the Preliminary Assessment Notice5 (PAN), dated May 20, 2008, together with the attached
details of discrepancies for the calendar year ending December 31, 2005.6 Upon investigation, Liquigaz
was initially assessed with deficiency withholding tax liabilities, inclusive of interest, in the aggregate
amount of P23,931,708.72, broken down as follows:
Thereafter, on June 25, 2008, it received a Formal Letter of Demand7 (FLD)/Formal Assessment Notice
(FAN), together with its attached details of discrepancies, for the calendar year ending December 31,
2005. The total deficiency withholding tax liabilities, inclusive of interest, under the FLD was
P24,332,347.20, which may be broken down as follows:
EWT P 5,535,890.38
WTC P 4,500,169.94
FBT P 14,296,286.88
TOTAL P 24,332,347.20
On July 25, 2008, Liquigaz filed its protest against the FLD/FAN and subsequently submitted its
supporting documents on September 23, 2008.
Then, on July 1, 2010, it received a copy of the FDDA8 covering the tax audit under LOA No. 00067824
for the calendar year ending December 31, 2005. As reflected in the FDDA, the CIR still found Liquigaz
liable for deficiency withholding tax liabilities, inclusive of interest, in the aggregate amount of
P22,380,025.19, which may be broken down as follows:
EWT P 3,479,426.75
WTC P 4,508,025.93
FBT P14,392,572.51
April-2016 Jurisprudence TOTAL P 22,380,025.19
G.R. No. 200302, April 20, 2016 - PEOPLE OF THE
PHILIPPINES, Appellee, v. GERRY LIPATA Y ORTIZA,
Appellant. Consequently, on July 29, 2010, Liquigaz filed its Petition for Review before the CTA Division assailing
the validity of the FDDA issued by the CIR.9
G.R. No. 222702, April 05, 2016 - RAPPLER, INC.,
Petitioner, v. ANDRES D. BAUTISTA, Respondent.
The CTA Division Ruling
A.C. No. 10677, April 18, 2016 - RUDENIA L.
TIBURDO, Complainant, v. ATTY. BENIGNO M. PUNO, In its November 22, 2012 Decision, the CTA Division partially granted Liquigaz's petition cancelling the
Respondent. EWT and FBT assessments but affirmed with modification the WTC assessment. It ruled that the portion
of the FDDA relating to the EWT and the FBT assessment was void pursuant to Section 228 of the
G.R. No. 195176, April 18, 2016 - THE INSULAR National Internal Revenue Code (NIRC) of 1997, as implemented by Revenue Regulations (RR) No. 12-
LIFE ASSURANCE COMPANY, LTD., Petitioner, v. PAZ Y. 99.
KHU, FELIPE Y. KHU, JR., AND FREDERICK Y. KHU,
Respondents. The CTA Division noted that unlike the PAN and the FLD/FAN, the FDDA issued did not provide the details
thereof, hence, Liquigaz had no way of knowing what items were considered by the CIR in arriving at the
G.R. No. 196470, April 20, 2016 - ROSARIO
deficiency assessments. This was especially true because the FDDA reflected a different amount from
VICTORIA AND ELMA PIDLAOAN, Petitioners, v.
NORMITA JACOB PIDLAOAN, HERMINIGILDA what was stated in the FLD/FAN. The CTA Division explained that though the legal bases for the EWT and
PIDLAOAN AND EUFEMIA PIDLAOAN, Respondents. FBT assessment were stated in the FDDA, the taxpayer was not notified of the factual bases thereof, as
required in Section 228 of the NIRC.
G.R. No. 194260, April 13, 2016 - HEIRS OF
FELICIANO YAMBAO, NAMELY: CHONA YAMBAO, JOEL On the other hand, it upheld the WTC assessment against Liquigaz. It noted that the factual bases used
YAMBAO, WILLY YAMBAO, LENNIE YAMBAO AND in the FLD and the FDDA with regard thereto were the same as the difference in the amount merely
RICHARD YAMBAO, AND ALL OTHER PERSONS ACTING resulted from the use of a different tax rate.
UNDER THEIR AUTHORITY, Petitioners, v. HEIRS OF
HERMOGENES YAMBAO, NAMELY: ELEANOR YAMBAO, The CTA Division agreed with Liquigaz that the tax rate of 25.40% was more appropriate because it
ALBERTO YAMBAO, DOMINIC YAMBAO, ASESCLO represents the effective tax compensation paid, computed based on the total withholding tax on
YAMBAO, GERALD DANTIC AND MARIA PILAR compensation paid and the total taxable compensation income for the taxable year 2005. It did not give
YAMBAO, WHO ARE ALL REPRESENTED BY THEIR
ATTORNEY-IN-FACT, MARIA PILAR YAMBAO., credence to Liquigaz's explanation that the salaries account included accrued bonus, 13th month pay, de
Respondents. minimis benefits and other benefits and contributions which were not subject to withholding tax on
compensation. The CTA Division relied on the report prepared by Antonio O. Maceda, Jr., the court-
G.R. No. 193554, April 13, 2016 - SPOUSES commissioned independent accountant, which found that Liquigaz was unable to substantiate the
RODRIGO IMPERIAL, JR. AND JOCELYN IMPERIAL, discrepancy found by the CIR on its withholding tax liability on compensation. The dispositive portion of
AND FE IMPERIAL, Petitioners, v. SPOUSES ROGELIO the CTA Division decision reads:
AND ASUNCION PINIGAT., Respondents.
G.R. No. 195155, April 13, 2016 - DIVINE WORD WHEREFORE, the Petition for Review is hereby PARTIALLY GRANTED. Accordingly, the
COLLEGE OF LAOAG, Petitioner, v. SHIRLEY B. MINA, assessments for deficiency expanded withholding tax in the amount of P3,479,426.75 and
AS HEIR-SUBSTITUTE OF THE LATE DELFIN A. MINA, fringe benefits tax in the amount of P14,392,572.51 issued by respondent against
Respondent.
petitioner for taxable year 2005, both inclusive of interest and compromise penalty is
hereby CANCELLED and WITHDRAWN for being void.
G.R. No. 217930, April 18, 2016 - SPOUSES JORGE
NAVARRA AND CARMELITA NAVARRA, Petitioners, v.
YOLANDA LIONGSON, Respondent. However, the assessment for deficiency withholding tax on compensation for taxable year
2005 is hereby AFFIRMED with MODIFICATIONS. Accordingly, petitioner is hereby
G.R. No. 208648, April 13, 2016 - PEOPLE OF THE ORDERED to PAY respondent the amount of P2,958,546.23, inclusive of the 25%
PHILIPPINES, Plaintiff-Appellee, v. REYNALDO surcharge imposed under Section 248(A)(3) of the NIRC of 1997, as amended, computed
UMANITO, Accused-Appellant. as follows:
G.R. Nos. 208896-97, April 06, 2016 - EDREN Less: Salaries per Alphalist P42,921,057-16
RICASATA, Petitioner, v. CARGO SAFEWAY, INC. AND
EVERGREEN MARINE CORPORATION (TAIWAN), LTD.,
Respondents. Discrepancy P9,318,255-84
G.R. No. 195054, April 04, 2016 - ATTY. CORAZON Tax rate 25.40%
CHAVEZ, Petitioner, v. RENATO GARCIA AND THE
OFFICE OF THE OMBUDSMAN, Respondents. Basic Withholding Tax on Compensation P2,366,836.98
G.R. No. 204314, April 06, 2016 - HEIRS OF DANILO
ARRIENDA, ROSA G. ARRIENDA, MA. CHARINA ROSE Add: 25% Surcharge P591,709.5
ARRIENDA-ROMANO, MA. CARMELLIE ARRIENDA-
MARA, DANILO MARIA ALVIN G. ARRIENDA, JR., AND Total Amount Due P2,958,546.23
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
JESUS FRANCIS DOMINIC G. ARRIENDA, Petitioners,
v. ROSARIO KALAW, Respondent. In addition, petitioner is liable to pay: (a) deficiency interest at the rate of twenty percent
(20%) per annum of the basic deficiency withholding tax on compensation of
A.C. No. 6934, April 06, 2016 - HELEN CHANG, P2,958,546.23 computed from January 20, 2006 until full payment thereof pursuant to
Complainant, v. ATTY. JOSE R. HIDALGO, Respondent. Section 249(B) of the NIRC of 1997, as amended; and (b) delinquency interest at the rate
of twenty percent (20%) per annum on the total amount due of
G.R. No. 198774, April 04, 2016 - TEOFILO
ALOLINO, Petitioner, v. FORTUNATO FLORES AND
ANASTACIA MARIE FLORES, Respondents.
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
LIMITED AND CAPT. MANOLO T. GACUTAN,
Petitioners, v. HENRY C. HARO, Respondent.
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
Petitioners, v. PILIPINAS SHELL PETROLEUM
CORPORATION (PSPC), WILLIE J. SARMIENTO, PSPC
VICE-PRESIDENT FOR FINANCE AND TREASURER AND
ATTY. CIPRIANO U. ASILO, Respondents.
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
A.C. No. 8172, April 12, 2016 - ALEX NULADA,
Complainant, v. ATTY. ORLANDO S. PAULMA,
Respondent.
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
(FORMERLY EQUITABLE PCI BANK, INC.),
Respondents.
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
EFREN BUENAFE, JR., MARK ROBERT LARIOSA AND
JAYPEE PINEDA, Accused-Appellants.
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11/12/2018 G.R. No. 215534, April 18, 2016 - COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LIQUIGAZ PHILIPPINES CORPORATION…
GARCIA @ BENJIE/LOLOY, AND ALIAS TABOY,
ACCUSED, JONEL VARGAS Y RAMOS, JERIENALD
VILLAMERO Y ESMAN, Accused-Appellants.
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