FACTS:
By virtue of a Letter of Authority, petitioner caused the examination of the books of accounts and other accounting records of respondent corporation for the years ending 1986, 1987 and 1988. Petitioner filed a criminal complaint before the Department of Justice (DOJ) against respondent corporation, its president and treasurer for alleged evasion of taxes. Respondents received a subpoena from the DOJ in connection with the criminal complaint filed against them.
ISSUE(S):
Whether or not the criminal complaint for tax evasion is considered an assessment.
HELD:
NO. Not all documents coming from the BIR containing a computation of the tax liability can be deemed assessments. The criminal charge is filed directly with the Department of Justice. Thereafter, the taxpayer is notified that a criminal case had been filed against him, not that the Commissioner has issued an assessment. A criminal complaint, it must be stressed, is instituted not to demand payment, but to penalize the taxpayer for violation of the Tax Code.
