Alcantara v. Republic Of The Hilippines

BERSAMIN, J.:

An action directly brought in the Regional Trial Court (RTC) ostensibly to demand reconveyance of property sold upon forfeiture for nonpayment of a tax assessment is to be dismissed for failure of the plaintiff to claim for refund or credit with the Commissioner of Internal Revenue. The failure to resort to administrative remedies rendered the assessment final. The Case Under review are the decision promulgated on November 4, 20091 and resolution promulgated on May 13, 2010,2 whereby the Court of Appeals (CA) in CA-G.R. CV No. 79261 respectively dismissed the appeal of the petitioner and denied his motion for reconsideration.

As a consequence, the decision rendered on February 28, 2003 by the RTC in Davao City in Civil Case No. 25,401-97 entitled Demetria Alcantara v. Republic of the Philippines, et al.3 dismissing the petitioner's complaint for declaration of nullity of notice of seizure of real prope1iy, declaration of forfeiture of real property, deed of sale and for specific performance for reconveyance of real property stands. Antecedents The CA summarized the facts as follows: Plaintiff-appellant Demetrio R. Alcantara (hereinafter, appellant) was the owner of a parcel of land, 301 square meters in area, situated at Panorama Homes, Buhangin, Davao City, and covered by Transfer Certificate of Title (TCT) No. T-113015. Defendants-appellees (hereinafter, appellees) arc: The Republic of the Philippines thru its agency, Bureau of Internal Revenue (BIR), Revenue Region No. 11-B, Davao City and the following officers of the said Revenue Region: Region Enforcement Officer Amerigo D. Villegas, Assistant Regional Director Teodorica R. Arcega, and Regional Director Jose C. Batausa; Themistocles R. Montalban, Assistant Commissioner for Collection Service of the BIR; the Register of Deeds of Davao City; and Maximo Lagahit.

On April 15, 1983 and April 16, 1984, appellant filed his income tax returns for, respectively, the years 1982 and 1983. On December 14, 1987, Crispin Vallejo, Jr., Assistant Regional Director of the Revenue Region No. 11-B of the BIR, Davao City, wrote appellant informing him that ₱32,076.52 was still due from him representing deficiency income tax and fixed tax, surcharge, interest and compromise penalty for late payment, and inviting him to call at "the Chief: Assessment Branch Room 107 Milagros Building Ilustre Street, this City for an informal conference to enable" appellant "to go over our findings and present objections thereto, if any".

The letter was addressed thus: Mr. Demetria R. Alcantara Ecoland Subdivision, Matina Davao City There was no response from appellant. On February 15, 1988, the BIR issued two (2) demand letters - with respective accompanying income tax assessment notices - to appellant at the same address. The demand letters were signed by Vallejo for Commissioner of Internal Revenue (CIR) Bienvenido A. Tan Jr. The first letter reads: This is to inform you that in the investigation conducted by an examiner of this Office on your 1982 & 1983 income and other internal revenue tax liabilities, it was ascertained that there is still due from you the total amount of THIRTY THOUSAND SEVEN HUNDRED NINETY SEVEN & 36/100 (₱30,797.36) representing deficiency income taxes and interests for late payment.

The amount due is computed as follows: 1982 Deficiency Income Tax Due ₱7,530.81 Add: Interest from 04-16-83 to 02-15-88 4,518.49