Respondent on 21 April 1994 received a Preliminary Assessment Notice (PAN) dated 13 April 1994 for deficiency income tax. The following day, it received a Formal Assessment Notice (FAN). It protested against the FAN in two protest letters dated 06 May and 23 May 1994. In both letters, respondent requested for the cancellation of the tax assessment, which they alleged was invalid for lack of factual and legal basis.
On 16 October 2002, respondent received from the CIR a Final Decision dated 08 October 2002 denying respondent’s protest against the FAN and affirming the same in toto.
Whether or not the respondent’s administrative protest embodied in two letters suspended the running of the statute of limitation.
NO. Where the taxpayer merely filed two protest letters requesting for a reconsideration, and where the BIR could not have conducted a reinvestigation because no new or additional evidence was submitted, the running of statute of limitations cannot be interrupted.