Comm mmi s s i onerofI nt er nalRevenuevs. Met r oSt arSuper ama ma,I nc.( Dece mber8, 2010) On January26,2011,aLet t erofAut hor i t ywasi ss ued f ort heexami mi nat i on Met r oSt ar Sup e r a ma maI nc . ’ s( Me t r oSt a r )b o o kso fa c c o unt sa ndo t he ra c c o unt i ngr e c o r d sf o ri nc o met a x a nd o t he ri nt e r n alr e v e nuet a x e sf o rt het a xa bl ey e a r1 99 9.Fo rMe Me t r oSt a r ’ sf a i l ur et o c o mpl ywi t hs e v e r a lr e q ue s t sf o rt hep r e s e nt a t i o no fr e c o r dsa ndSub po e naDu Duc e sTe c um,a n I ndor s eme mentdat edSept emb mber26,2001 wasi s s ued i nf or mi ngRev enueDi s t r i c tOffic ero f Le g a z p iCi t yt op r o c e e d wi t ht he i n v e s t i g a t i o nb as e do nt he b e s te v i d e nc eo b t a i na bl e pr e p ar a t o r yt ot hei s s u anc eo fa s s e s s m me e ntn o t i c e . OnNove mber8,2001,aPr el i mi nary15dayLet t er ,whi c hMet r oSt arr ec ei vedonNov emb mber 9 ,2 00 1 ,wa si s s ue ds t a t i ngt ha tap o s ta ud i tr e v i e w wa she l da ndi twa sas c e r t a i ne dt ha t t he r ewa sd e fic i e nc yv al ue a dd e da ndwi wi t hho l d i ngt a x e sd uef r o m Me t r oSt a r .OnAp r i l1 1 , 2 00 2,Me t r oSt a rr e c e i v e daFo r ma lLe t t e ro fDe ma ma ndd at e dAp r i l3 ,2 00 2a s s e s s i ngi ta n a mo mo untf o rd e fic i e nc yv a l ue a dd e da ndwi t hho l di ngt a x e sf o rt het a xa bl ey e a r1 9 99 . Sub s e q ue nt l y , aFi na lNo t i c eo fSe i z ur eda t e dMa y12 ,2 00 3wa ss e n tt oMe Me t r oSt a r ,whi c hi t r e c e i v e do nMa y15,2003,g i vi ngi tt hel as to ppo r t uni t yt os e t t l ei t sde fic i e nc yt a xl i abi l i t i e s wi t hi n1 0da y sf r o mr e c e i p tt he r e o f .OnFe b r ua r y6,2 00 4,Me t r oSt a rr e c e i v e daWa r r a nto f Di s t r ai nt / Levydat edMa May12,2003dema mandi ngpayme mento fdefic i encyval ueaddedt axand wi t hhol di ngt axpayme ment .OnJul y30,2004,Me t r oSt arfil edwi t ht heOffic eoft heCI Ra MR whi c h wasde ni e d.Denyi ng t hati trec ei ved a Pre l i mi nary As s es s mentNot i ce ( PAN AN)a ndc l a i mi ngt ha ti twa sno ta c c o r de dwi t hd uepr o c e s s ,Me t r oSt a rfil e dape t i t i o n f o rr e v i e w wi t ht heCTA.TheCTASe c o ndDi v i s i o ng r a nt e dMe t r oS t a r ’ sp e t i t i o nf o rr e v i e w. Ar e c o ns i de r at i o nwass o ughtbyt heCI Rbuti twasde ni e d.Onappe alt ot heCT A-nBanc , E t hepe t i t i o nwasd i s mi mi s s e d. I SSUE:Whe t he rf a i l ur et os e ndt heP AN wo u l dr e n de rt hea s s e s s me n tn ul la ndv o i d HELD: D:On t hema t t e ro fs e r v i c eo fa t a xa s s e s s me me nt ,a f ur t he rpe r us a lo fo urr ul i ng i n ar i si ns t r uc t i v e ,v : B c e l o n i z J ur i s p r ud e nc ei sr e p l e t ewi t hc a s e sho l di ng t ha ti ft he t axpayer deni esever havi ng re cei vedan ass es s mentf rom t heBI BI R,i ti si ncumbentupon t hel at t ert oproveby comp mpet ent evi dence t hat s uch not i ce was i ndeed r ecei ved by t he addres s ee. Theo eonuspr wa wass hi f t ed t ores pondentt oproveby cont rar yevi dencet hat obandi t he Pet i t i oner re cei ved t he ass es s menti nt he due cours e ofma mai l . TheSupr e me Co ur tha sc o ns i s t e nt l yhe l dt ha twhi l eama i l e dl e t t e ri sde e me me dr e c e i v e db yt headd r e s s e e
i nt hec o ur s eo fma i l ,t hi si sme r e l yadi s p ut a bl epr e s ump t i o ns ub j e c tt oc o nt r o v e r s i o na nda di r e c tde ni a lt he r e o fs hi f t st hebur d e nt ot hepa r t yf a v o r e db yt hepr e s ump t i o nt opr o v et h at t hema i l e dl e t t e rwa si nd e e dr e c e i v e db yt head dr e s s e e( Re pub l i cv s .Co ur to fApp e al s ,1 49 SCRA35 1) . TheCo ur ta gr e e swi t ht heCTA t ha tt heCI Rf a i l e dt od i s c ha r g ei t sd ut yandp r e s e nta ny e v i d e nc et os h o wt ha tMe t r oSt a ri nd e e dr e c e i v e dt hePAN d at e dJ anua r y16 ,2 00 2.I tc o ul d ha v es i mpl ypr e s e nt e dt her e g i s t r yr e c e i p to rt hec e r t i fic a t i o nf r o mt hepo s t ma s t e rt ha ti t ma i l e dt hePAN,b utf a i l e d .Ne i t he rd i di to ff e ran ye x pl a na t i o no nwh yi tf a i l e dt oc o mp l y wi t ht her e q ui r e me nto fs e r v i c eo ft heP AN. I ndeed,Sec t i on 228 oft he Tax Code c l ear l yr equi r est hatt he t axpayermus tfir s tbe i nf o r me dt ha th ei sl i a b l ef o rd e fic i e nc yt a x e st hr o ug ht hes e n di ngo faP AN.Hemus tb e i nf or medoft hef act sandt hel aw uponwhi c ht heass es smenti smade.Thel aw i mpose sa s ub s t ant i v e ,no tme r e l yaf o r ma l ,r e q ui r e me nt .Topr o c e e d he e dl e s s l ywi t ht a xc o l l e c t i o n wi t ho utfir s te s t abl i s hi ngav al i das s e s s me nti se vi de nt l yv i o l at i v eo ft hec a r di nalpr i nc i pl e i na dmi ni s t r a t i v ei nv e s t i g at i o ns-t ha tt a x pa y e r ss ho ul db ea bl et opr e s e ntt he i rc a s eand a dduc es u pp o r t i nge v i de nc e . Thi si sc o nfir me dund e rt hepr o v i s i o nsR. R.No .1 29 9o ft heBI Rwhi c hpe r t i ne nt l ypr o v i de : xx x 3 . 1 . 2 Pr e l i mi na r y As s e s s me n t No t i c e( P AN) .-I fa f t e rr e v i e w a nd e v a l ua t i o nb yt he As s e s s me ntDi vi s i o no rb yt heCo mmi s s i o ne ro rhi sdul yaut ho r i z e dr e pr e s e nt at i v e ,ast he c a s ema yb e ,i ti sde t e r mi ne dt ha tt he r ee x i s t ss uffic i e ntb a s i st oas s e s st het a x pa y e rf o ra ny de fic i e nc yt a xo rt a xe s ,t hes a i dOffic es ha l li s s u et ot het a x pa y e r ,a tl e a s tb yr e g i s t e r e dmai l , aPr e l i mi na r yAs s e s s me ntNo t i c e( PAN)f o rt hepr o p o s e da s s e s s me nt ,s h o wi ngi nd e t a i l ,t he f a c t sa ndt hel a w,r u l e sa ndr e g ul a t i o ns ,o rj ur i s p r ud e nc eo nwhi c ht hepr o p o s e das s e s s me nt i sb as e d( s e ei l l us t r a t i o ni nANNEX A he r e o f ) .I ft het a xpa y e rf a i l st or e s p o ndwi t hi nfif t e e n ( 15 )da y sf r o m da t eo fr e c e i p to ft hePAN,hes ha l lb ec o ns i de r e di nde f a ul t ,i nwhi c hc as e ,a f o r ma ll e t t e ro fd e ma nda nda s s e s s me ntno t i c es h al lb ec a us e dt ob ei s s ue db yt hes a i dOffic e , c a l l i ng f o rpa yme nto ft he t ax pa y e r ' s de fic i e nc yt a xl i a bi l i t y ,i nc l us i v eo ft he a ppl i c a bl e pe nal t i e s .
Fr o mt hepr o v i s i o nq uo t e da bo v e ,i ti sc l e art ha tt hes e ndi ngofaPAN t ot a xpa y e rt oi nf o r m hi mo ft hea s s e s s me ntma dei sb utp ar to ft he“ d uep r o c e s sr e q ui r e me nti nt hei s s ua nc eo fa d e fic i e nc yt a xas s e s s me nt , ”t hea b s e nc eo fwhi c hr e nd e r snug a t o r ya n yas s e s s me ntma deb y t het a xa ut ho r i t i e s .Theus eo ft hewo r d “hal ”i ns ub s e c t i o n3 . 1 . 2de s c r i b e st h ema ndat o r y s l na t u r eo ft hes e r v i c eo faPAN.Thepe r s u as i v e ne s so ft her i g htt oduepr o c e s sr e a c h e sb o t h s u bs t a nt i a la nd pr o c e d ur a lr i g ht sand t hef a i l ur eo ft heCI Rt os t r i c t l yc o mp l ywi t ht he
r e q ui r e me nt sl a i dd o wnb yl a wa ndi t so wnr u l e si sad e ni a lo fMe t r oSt a r ’ sr i g htt od ue p r o c e s s .Thus ,f o ri t sf a i l ur et os e ndt hePAN s t a t i ngt hef a c t sa ndt hel a wo n whi c ht he ass es s mentwasmadeasr equi r edbySec t i on228ofR. A.No.8424,t heass es s mentmadeby t heCI Ri sv o i d .
