CTA halts BIR collection on P8.6B San Miguel shares owned by Cojuangco

The Court of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) to halt collection efforts on P8.6 billion worth of San Miguel Corporation shares owned by Eduardo Cojuangco Jr., as part of the Marcos estate tax liability.

On August 14, the CTA's First Division ruled that these SMC shares are exclusive properties of Cojuangco and should not be included in the 1991 estate tax assessment amounting to P23.29 billion.

The court criticized the BIR for its 'unfounded persistence' in pursuing collection against the Cojuangco shares, describing it as an abuse of discretion.

The CTA noted that these SMC shares were not part of the proceedings and emphasized that collecting taxes should target delinquent taxpayers only.

Furthermore, the court highlighted that the attempted distraint of property belonging to third parties without proper notice violates due process rights, constituting a serious legal issue.

Separate concurring opinions were also penned by Presiding Justice Roman G. Del Rosario and Justice Jean Marie A. Bacorro-Villena.

This ruling further bolsters the protection of individuals from unjust collection actions while upholding proper legal procedures.