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.
Whether or not the criminal complaint for tax evasion is considered an assessment.
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.