CTA dismisses BUSECO’s tax protest, citing lack of final decision by BIR

The Court of Tax Appeals (CTA) dismissed a petition filed by Bukidnon II Electric Cooperative, Inc. (BUSECO), which sought to cancel a PHP23.5 million income tax assessment for 2018.

The CTA ruled that BUSECO's case did not fall under its jurisdiction as the BIR had not issued a final decision on the protest of the taxpayer against the subject tax assessment.

CTA Associate Justice Ma. Belen M. Ringpis-Liban authored the decision, emphasizing that for a letter to be considered final, it must explicitly state that it is the Commissioner's final decision under Section 3.1.5 of RR No. 12-99.

The court underscored that the Formal Letter of Demand (FLD) and Final Assessment Notice (FAN) issued by Revenue Region No. 6 in Cagayan de Oro City on Dec. 3, 2021 cannot be considered a final decision.

In dismissing the petition, the CTA highlighted the importance of clear language in official communications regarding tax assessments and decisions.

The dismissal underscores the strict adherence to legal procedures and definitions within tax administration.