CIR v Ayala Securities Corp. and CTA; G.R. No. L-29485; 31 Mar 1976

in Legal Chyme by

Respondent, in a letter dated 19 April 1961, protested against the assessment issued by petitioner in a letter dated 21 February 1961 on its retained and accumulated surplus pertaining to the taxable year 1955 and sought reconsideration thereof. On 21 February 1963, respondent received a letter dated 18 February 1963 from petitioner calling the attention of the respondent to its outstanding and unpaid tax and thereby requesting for the payment of the same within five (5) days from receipt of the said letter.

Believing the aforesaid letter to be a denial of its protest, respondent corporation filed a petition for review with CTA.

Whether or not the 18 February 1963 letter amounted to a denial of respondent’s protest.

YES. The letter of 18 February 1963 is tantamount to a denial of the reconsideration or protest of the respondent corporation on the assessment made by the petitioner, considering that the said letter is in itself a reiteration of the demand by the BIR for the settlement of the assessment already made, and for the immediate payment in spite of the vehement protest of the respondent corporation on 21 April 1961. This certainly is a clear indication of the firm stand of the petitioner against the reconsideration of the disputed assessment in view of the continued refusal of the respondent corporation to execute the waiver of the period of limitation upon the assessment in question. This being so, the said letter amounts to a decision on a disputed or protested assessment.

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