TAXATION LAW II | CIR v. Enron Subic Power Corp. G.R. No. 166387, January 19, 2009

CIR v. Enron Subic Power Corp. 

G.R. No. 166387, January 19, 2009 


FACTS [the CIR] merely issued a formal assessment and indicated therein the supposed tax, surcharge, interest and compromise penalty due thereon. The Revenue Officers of the [the CIR] in the issuance of the Final Assessment Notice did not provide Enron with the written bases of the law and facts on which the subject assessment is based. [The CIR] did not bother to explain how it arrived at such an assessment. Moreso, he failed to mention the specific provision of the Tax Code or rules and regulations which were not complied with by Enron. Whether the assessment in question was void.


HELD. No. A taxpayer must be informed in writing of the legal and factual bases of the tax assessment made against him. The law requires that the legal and factual bases of the assessment be stated in the formal letter of demand and assessment notice.


Here, in view of the absence of a fair opportunity for Enron to be informed of the legal and factual bases of the assessment against it, the assessment in question was void.








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