CIR v Liquigaz Philippines Corp.; G.R. No. 215534; 18 Apr 2016

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Respondent received the following notices issued by the BIR relative to the latter’s conduct of an investigation of the former’s internal revenue taxes for taxable year 2005: (1) an undated Notice of Informal Conference; (2) a copy of the Preliminary Assessment Notice (PAN) dated 28 May 2008; and (3) a Formal Letter of Demand (FLD)/Formal Assessment Notice (FAN); and (4) a copy of the Final Decision on Disputed Assessment (FDDA) after respondent filed on 25 July 2008 its protest against the FLD/FAN.

Respondent on 29 July 2010 assailed the validity of the FDDA in a petition for review before the CTA Division which ruled that while the decision indicated the legal provisions relied upon for the assessment but not the factual bases thereof . The FDDA being void, the assessment was also declared void.


Whether or not a void FDDA leads to a void assessment.

NO. An assessment becomes a disputed assessment after a taxpayer has filed its protest to the assessment in the administrative level. Thereafter, the CIR either issues a decision on the disputed assessment or fails to act on it and is, therefore, considered denied. The taxpayer may then appeal the decision on the disputed assessment or the inaction of the CIR.

Clearly, a decision of the CIR on a disputed assessment differs from the assessment itself. Hence, the invalidity of one does not necessarily result to the invalidity of the other — unless the law or regulations otherwise provide.

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