CIR v. Kudos Metal Corporation

CIR v. Kudos Metal Corporation, G.R. No. 178087 dated May 5, 2010 DOCTRINE:  Valid Waive Re!"ie# $ti%t Co&'lia(%e Wit) *o%ed"e# *e#%i+ed I( Reve("e Me&oa(d"& Ode No. -RMO/ 200 (d Reve("e Dele3atio(  "t)oity Ode No. No. -RDO/ 0501

. CT CT E( a(%: a(%: 3ee 3eed d to 2 B= B= ISS#$: T)e CT en banc  eed  eed i( "li(3 t)at t)e 3ove(&e(t# i3)t to a##e## "('aid ta6e# o e#'o(de(t 'e#%i+ed %$&': T)e 'etitio( i# +eet o &eit.

FACTS: 1.

Re#'o(de(t Re#'o(de(t 4"do# Metal Metal Co'oatio( Co'oatio( iled iled it# (("al (("al I(%o&e I(%o&e Ta6 Ta6 Ret"( Ret"( ITR/ o t)e ta6a+le yea 18. 2. *"#"a(t *"#"a(t to a ette ette o "t)oit "t)oity y $e't 7 1/, 1/, t)e IR #eved #eved "'o( "'o( 9"do# Noti%e# o *e#e(tatio( o Re%od#. 4"do# ailed to %o&'ly it) #"%). ;e(%e. T)e IR o##"ed a $"+'oe(a D"%e# Te%"& $e't 21, 200. De% 10 2001, 2001, t)e a%%o"(ta a%%o"(ta(t (t o 4"do# e6e%"t e6e%"ted ed a Waive Waive o Dee(#e Dee(#e o *e#%i'tio( )i%) a# olloed +y a(ot)e Waive o Dee(#e o *e#%i'tio( o( ?e+ 18 200=. 5. O( "3 "3 25 200=, IR i##"ed i##"ed a *eli& *eli& ##e## ##e##&e(t &e(t Noti%e Noti%e o t)e t)e ta6a+le yea o 18. T)i# a# olloed +y a ?o&al ette o De&a(d it) ##e##&e(t Noti%e. <. Re#'o(de( Re#'o(de(tt t)e( %)alle(3e %)alle(3ed d t)e a##e##&e(t# a##e##&e(t# +y ili(3 ili(3 it# *ote#t *ote#t De% = 200=/a(d it# e3al 3"&e(t# a(d Do%"&e(t# i( #"''ot o 'ote#t# a3ai(#t t)e a##e##&e(t# ?e+ 2 200>/ 7. IR e!"e#ted e!"e#ted t)e t)e i&&ediate i&&ediate 'ay&e(t 'ay&e(t o t)e ta6 ta6 lia+ilitie lia+ilitie# # Kind of Tax Amount  I(%o&e Ta6 * ,<=,87.85 VT 1=,<2,><0.0 EWT 1,712,==<.7< 1,712,==<.7< Wit))oldi(3 Ta6Co&'e(#atio( 2>7,=5=.2> *e(altie# 8,000.00 Total P 25,624,4!."6

8. CT: CT: Ri3)t Ri3)t to a##e## a##e## )a# )a# *RE$CRI *RE$CRIED. ED. I##"e# o( 1 #t aive: 1. ##i#ta(t ##i#ta(t Co&&i##i Co&&i##io(e o(e i# i# NOT T;E REVEN@ REVEN@E E O??ICI @T;ORIAED TO $IGN T;E WIVER, #i(%e t)e ta6 %a#e i(volved &oe t)a( *1M. 2. Waive Waive ailed ailed to i(di%at i(di%ate e t)e date o o a%%e'ta(% a%%e'ta(%e. e. =. T)e a%t a%t o e%ei't e%ei't +y t)e ta6'ay ta6'aye e o )i# ile ile %o'y a# a# (ot i(di%ated o( t)e oi3i(al %o'y

T)e aive# e6e%"ted +y e#'o(de(t# a%%o"(ta(t did (ot e6te(d t)e 'eiod it)i( )i%) t)e a##e##&e(t %a( +e &ade Sec 203 NIRC: &a(date# NIRC:  &a(date# t)e 3ove(&e(t to a##e## i(te(al eve("e ta6e# it)i( > yea# o& t)e la#t day 'e#%i+ed +y la o t)e ili(3 o t)e ta6 et"( o t)e a%t"al date o ili(3 o #"%) et"(, )i%)eve  %o&e# late. ;e(%e ;e(%e,, a( assess(ent noti)e issued a*ter t+e t+ree-ear pres)riptive period is no loner valid and e**e)tive. e**e)tive . E6%e'tio(# )oeve ae 'ovided "(de $e% 222 o t)e NIRC. $/C$PTI01: (Sec 22 NIRC) T)e 'eiod to a##e## a(d %olle%t ta6e# &ay o(ly +e e6te(ded "'o( a itte( a3ee&e(t +etee( t)e CIR a(d t)e Ta6'aye Ta6'aye e6e%"ted +eoe t)e e6'iatio( o t)e =yea 'eiod. RM*200 i##"ed o( 'il >, 11 a(d RDO 0501 i##"ed o( "3 2 2001 laydo( t)e 'o%ed"e o t)e 'o'e e6e%"tio( o aive.

1. T)e aive aive &"#t +e i( t)e proper *or( pres)ried RM0 23. 23. T)e ')a#e +"t (ot ate  1 , )i%) )i%) i(di%ate# i(di%ate# t)e e6'iy date o t)e 'eiod 'eiod a3eed a3eed "'o( to a##e##%olle%t t)e ta6 ate t)e e3"la t)ee yea 'eiod o 'e#%i'tio(, #)o"ld +e illed "'. 2. T)e aive aive &"#t +e sined - t+e tapa-er +i(sel* or  +is dul- aut+oried representative. representative. I( t)e %a#e o a %o'oatio(, t)e aive &"#t +e #i3(ed +y a(y o it# e#'o(#i+le oi%ial#. I( %a#e t)e a"t)oity i# dele3ated +y t)e ta6'aye to a e'e#e(t e'e#e(tativ ative, e, #"%) dele3atio( dele3atio( #)o"ld +e i( iti(3 a(d d"ly (otaiFed. =. T)e aive #)o"ld +e dul- notaried. >. T)e CIR or t+e revenue o**i)ial aut+oried - +i( (ust sin t+e aiver indi)atin t+at t+e 7IR +as a))epted

and areed to t+e aiver . T)e date o* su)+ a))eptan)e - t+e 7IR s+ould e indi)ated. ;oeve, +eoe #i3(i(3 t)e aive, t)e CIR o t)e eve("e oi%ial a"t)oiFed +y )i& &"#t &a9e #"e t)at t)e aive i# i( t)e 'e#%i+ed o&, d"ly (otaiFed, a(d e6e%"ted +y t)e ta6'aye o )i# d"ly a"t)oiFed e'e#e(tative. 5. ot) t)e date o* ee)ution - t+e tapa-er and date o*  a))eptan)e - t+e 7ureau s+ould e e*ore t+e epiration o* t+e period o* pres)ription or e*ore t+e lapse o* t+e period areed upon i( %a#e a #"+#e!"e(t a3ee&e(t i# e6e%"ted. <. T)e aive &"#t +e ee)uted in t+ree )opies, t)e oi3i(al %o'y to +e atta%)ed to t)e do%9et o t)e %a#e, t)e #e%o(d %o'y o t)e ta6'aye a(d t)e t)id %o'y o  t)e Oi%e a%%e'ti(3 t)e aive. T)e a%t o e%ei't +y t)e ta6'aye o )i#)e ile %o'y &"#t +e i(di%ated i( t)e oi3i(al %o'y to #)o t)at t)e ta6'aye a# (otiied o  t)e a%%e'ta(%e o t)e IR a(d t)e 'ee%tio( o t)e a3ee&e(t.1H

I1FIRMITI$S 0F T%$ FIRST 8AI9$R: 1. E6e%"ted it)o"t t)e (otaiFed itte( a"t)oity o *a#%o to #i3( t)e aive i( +e)al o t)e e#'o(de(t 2. T)e aive# ailed to i(di%ate t)e date o a%%e'ta(%e =. T)e a%t o e%ei't +y t)e e#'o(de(t o it# ile %o'y a# (ot i(di%ated i( t)e oi3i(al %o'ie# o t)e aive#. D"e to t)e dee%t# i( t)e aive#, t)e 'eiod to a##e## o %olle%t ta6e# a# (ot e6te(ded. Co(#e!"e(tly, t)e a##e##&e(t# ee i##"ed +y t)e IR +eyo(d t)e t)eeyea 'eiod a(d ae void.

$ST0PP$& '0$S 10T APP&. I( t)e %a#e o CIR v. $"yo% Co(#olidated Mi(i(3 Co&'a(y, e#to''el a# a''lied $ N ECE*TION TO T;E $TT@TE O? IMITTION$ o( %olle%tio( o ta6e# a(d (ot o( t)e a##e##&e(t o ta6e#. T)ee a# a i(di(3 t)at t)e ta6'aye &ade #eveal e!"e#t# o 'o#itive a%t# to %o(vi(%e t)e 3ove(&e(t to 'o#t'o(e t)e %olle%tio( o ta6e#. I( t)i# %a#e, t)e a##e##&e(t# ee i##"ed EJOND t)e 'e#%i+ed 'eiod. T)ee a# al#o (o #)oi(3 t)at t)e e#'o(de(t &ade a(y e!"e#t to 'e#"ade t)e IR to 'o#t'o(e t)e i##"a(%e o t)e a##e##&e(t#. IR %a((ot )ide +e)i(d t)e do%ti(e o e#to''el to %ove it# ail"e to %o&'ly it) RMO 200 a(d RDO 0501, )i%) t)e IR it#el i##"ed. IR ailed to veiy )et)e a (otaiFed itte( a"t)oity a# 3ive( +y t)e e#'o(de(t to it# a%%o"(ta(t, a(d to i(di%ate t)e date o a%%e'ta(%e a(d t)e e%ei't +y t)e e#'o(de(t o t)e aive#. ;avi(3 %a"#ed t)e dee%t# i( t)e aive#, IR &"#t +ea t)e %o(#e!"e(%e# a(d t)"# %a((ot #)it t)e +la&e to t)e ta6'aye.

We i(d (o &eit i( 'etitio(e# %lai& t)at e#'o(de(t i# (o e#to''ed o& %lai&i(3 'e#%i'tio( #i(%e +y e6e%"ti(3 t)e aive#, it a# t)e o(e )i%) a#9ed o additio(al ti&e to #"+&it t)e e!"ied do%"&e(t#.   aive o t)e $tat"te o i&itatio(#, +ei(3 a deo3atio( o ta6'aye# i3)t to #e%"ity a3ai(#t 'olo(3ed a(d "(#%"'"lo"# i(ve#ti3atio(#, &"#t +e %ae"lly a(d #ti%tly %o(#t"ed.