FACTS: Li qui gazPhi l i ppi neCor pr ec ei v edac opyofLet t erofAut hor i t y( L OA)i s sued byt heCI Raut hor i z i ngi nv es t i gat i onofal l i nt er nal r ev enuet ax esf or2005. I ta l s or e c ei v e dac o p yoft h ePANo nMa y20 ,2 00 8a ndwa sas s e s s e d 2 3, 93 1, 70 8. 7 2PHPa sde fi c i en c yt a x . OnJ une25,2008,i tr ec ei v e daFor mal As s es s me me ntNo t i c e( F AN)t oge t her wi t hi t sat t ac heddet ai l sofdi s cr epanc i esf orDec ember31,2005. Li qui g azfi l edapr o t es tonJ ul y25,2008ands ubmi t t eddoc ument son Se pt e mb mb er2 3,2 00 8. I tr ec ei v edt hec opyofFDDAonJ ul y1,2010ands t i l l l i abl ef or 2 2, 3 80 , 0 25 . 1 9PHP Li qui gazfil edapet i t i onf orr ev i ewt ot heCT Adi v i s i on CT Adi v i s i on—par t i al l ygr ant edLi qui gaz ’ spet i t i ont oc anc el EWTandFBT a s s es s me nt s . CT Aenbanc affir medt heCT Adi v i s i on.I ti sar equi r ementt hatt het ax pa y er s houl dbei nf or medi nwr i t i ngoft hel awandt hef ac t sonwhi c ht he asses smentwasma madeappl i edt ot heFDDA—ot her wi set heassess ment s hal l bev oi d. I SSUE:W/ Nt h ea s s e s sme ntma deb yt h eCI Ri sv a l i d HELD:Und erSec t i on228oft heNI RC,at ax pa y ers hal l bei nf or medi n wr i t i ngoft hel a w andt hef ac t sonwhi c ht heas s es s menti me sma made, ot her wi s ei ts hal l bev oi d.Agai n,Sec t i on3. 1. 4ofRRNo.1299r equi r es t hatt heFLDmus ts t at et hef ac t sandl awonwhi c hi si ti sbas ed.
Sec t i on228oft heNI RCs houl dnotber eadr es t r i c t i v el yast ol i mi tt he wr i t t ennot i c eonl yt ot heas ses smenti t s el f .Thewr i t t ennot i c er equi r ement f o rb ot ht h eFL Dan dt heFANi si nob s er v a nc eofdu epr o c es s —t oaff or d t het ax pa y eradequat eoppor t uni t yt ofi l eapr ot es tont heas s es s mentand fi l eanappeal i nc as eofanadv er s edec i s i on. Ho we v er ,av o i dFDDAd oe sno ti p s of ac t or en de rt hea s s es s me ntv o i d .A d ec i s i ondi ff er sf r om a na s s es s me nt .Anas s e s s men tb ec o me sadi s p ut e d as s es s mentaf t erat ax pay erhasfi l edi t spr ot es tt ot heas s es s ment .The CI Rei t heri s suesadec i s i onont hedi s put edas ses smentorf ai l st oac toni t andi sc ons i der eddeni ed.Thet ax pa y erma yt henappeal t hedec i s i onon t hedi s put edas s es s mentort hei nac t i onoft heCI R.Ass uc h,t heFDDAi s nott heonl ymeanst hatt hefi nal t axl i abi l i t yofat ax pay eri sfi x ed,whi c h ma yt henb eappeal edbyt het ax pa y er . Ad ec i s i onoft heCI Ronadi s put edas s es s mentdi ff er sf r om t he as s es smenti t s el f .Thei nv al i di t yofonedoesnotnec es s ar i l yr es ul ti nt he i nv al i di t yoft heot her . Howev ert heFFDAi s s uedr ev eal st hati tmer el ycont ai nedat abl eof Li qui gaz ’ ss uppos edt axl i abi l i t i es ,wi t houtpr ov i di nganydet ai l s .TheFDDA mus ts t at et hef ac t sandl awonwhi c hi ti sbas edt opr ov i det het ax pay ert he oppor t uni t yt ofi l eani nt el l i gentappeal . Ases t a bl i s he d,a nFDDAt ha tdoe snoti nf or mt het a xpa y eri nwr i t i ng oft hef a ct sa ndl a w onwhi c hi ti sba se dr e nde r st hede ci s i onv oi d. Ther ef or e,i ti sa si ft her ewasnodeci si onr ender edbyt heCI R.I ti s t a nt a mountt oade ni a lbyi na ct i onbyt heCI R,whi c hma ys t i l lbe appeal edbef or et heCTAandt heassessmenteval uat edont hebasi s oft heavai l abl eevi denceanddocument s.Themer i t soft heEWTand FBTassessmentshoul dhavebeendi scussedandnotmer el ybr ushed asi deonaccountoft hevoi dFDDA.
TheCour tagr eest hatt heFDDAs ubs t ant i al l yi nf or medLi qui gazofi t st ax l i abi l i t i eswi t hr egar dt oi t sWTCas ses sment .
Subs t ant i al c ompl i anc ewi t ht her equi r ementunderSec t i on228oft he NI RCi sper mi s s i bl epr ov i dedt hatt het axpay erwoul dbeev ent ual l y appr i s edi nwr i t i ngoft hef ac t ual andl egal bas esoft heas ses smentt oal l ow hi mt ofi l eaneffec t i v epr ot es tagai ns t . I ti si mper at i v et hatt heFDDAc ont ai ndet ai l soft hedi s cr epanc y .Fai l ur et o dos owoul ddepr i v eLI qui gazadequat eoppor t uni t yt opr epar eani nt el l i gent appeal .I twoul dha v enowa yofdet er mi ni ngwhatwer ec ons i der edb yt he CI Ri nt hedef ens esi thadr ai s edi nt hepr ot es tt ot heFLD. REMANDEDTO CTA
