Asiatrust Development Bank v. Revenue

DEL CASTILLO, J.:

An application for tax abatement is deemed approved only upon the issuance of a termination letter by the Bureau of Internal Revenue (BIR). These consolidated Petitions for Review on Certiorari1 under Rule 45 of the Rules of Court assail the November 16, 2011 Decision2 and the April 16, 2016 Resolution3 of the Court of Tax Appeals (CTA) En Banc in CTA EB Case Nos. 614 and 677. Factual Antecedents On separate dates in February 2000, Asiatrust Development Bank, Inc. (Asiatrust) received from the Commissioner of Internal Revenue (CIR) three Formal Letters of Demand (FLD) with Assessment Notices 4 for deficiency internal revenue taxes in the amounts of P131,909,161.85, P83,012,265.78, and ₱l44,012,918.42 for fiscal years ending June 30, 1996, 1997, and 1998, respectively.5 On March 17, 2000, Asiatrust timely protested the assessment notices.6 Due to the inaction of the CIR on the protest, Asiatrust filed before the CTA a Petition for Review7 docketed as CTA Case No. 6209 praying for the cancellation of the tax assessments for deficiency income tax, documentary stamp tax (DST) - regular, DST - industry issue, final withholding tax, expanded withholding tax, and fringe benefits tax issued against it by the CIR.

On December 28, 2001, the CIR issued against Asiatrust new Assessment Notices for deficiency taxes in the amounts of ₱l 12,816,258.73, ₱53,314,512.72, and ₱133,013,458.73, covering the fiscal years ending June 30, 1996, 1997, and 1998, respectively.8 On the same day, Asiatrust partially paid said deficiency tax assessments thus leaving the following balances: 1awp++i1 Fiscal Year 1996 Documentary Stamp Tax ₱13,497,227.80 Final Withholding Tax - Trust 8,770,265.07 Documentary Stamp Tax - Industry Issue 88,584,931.39