ASG Law

Tag: Preliminary Assessment Notice

  • Due Process in Tax Assessments: Strict Adherence to Notice Requirements

    The Supreme Court ruled that the Bureau of Internal Revenue (BIR) must strictly observe the prescribed procedure for issuing assessment notices to uphold taxpayers’ constitutional rights to due process. The premature issuance of a Final Assessment Notice (FAN) before the taxpayer’s response period to a Preliminary Assessment Notice (PAN) has lapsed violates due process and renders the assessment void. This decision underscores the importance of procedural fairness and the BIR’s obligation to follow regulatory guidelines in tax assessments.

    Prime Steel’s Fight: When Does a Tax Assessment Violate Due Process?

    Prime Steel Mill, Incorporated contested a deficiency income tax assessment for the taxable year 2005, arguing that the Bureau of Internal Revenue (BIR) failed to observe due process. The core of the dispute revolved around the premature issuance of a Final Assessment Notice (FAN) before the deadline for Prime Steel to respond to the Preliminary Assessment Notice (PAN). This case highlights the crucial role of due process in tax assessments and the potential consequences when government agencies fail to adhere to established procedures.

    The BIR issued a Preliminary Assessment Notice (PAN) to Prime Steel, indicating a deficiency in income tax, value-added tax (VAT), and expanded withholding tax (EWT) for the year 2005. Prime Steel responded by filing a letter protesting the PAN. Subsequently, the BIR issued a Final Assessment Notice (FAN) and Formal Letter of Demand (FLD), reiterating the findings of the PAN. Prime Steel challenged the validity of these assessments before the Court of Tax Appeals (CTA), asserting that the BIR’s right to assess had already prescribed.

    The Commissioner of Internal Revenue argued that the assessments were issued within the three-year period prescribed by Section 203 of the National Internal Revenue Code (Tax Code). The Commissioner further contended that the income and VAT deficiencies had factual and legal bases, asserting the principle that tax assessments are presumed correct and made in good faith.

    The CTA Third Division initially partially granted Prime Steel’s petition, canceling the deficiency VAT assessment but upholding the deficiency income tax assessment. The CTA Third Division found that the BIR’s right to assess Prime Steel for VAT had already prescribed. Both parties filed motions for partial reconsideration, which were subsequently denied. This led to both parties filing their respective Petitions for Review before the CTA En Banc.

    The CTA En Banc denied both petitions, affirming the ruling of the CTA Third Division. The court addressed Prime Steel’s arguments, including the claim that the protest was a mere request for reconsideration that did not toll the running of the prescriptive period. The CTA En Banc concluded that Prime Steel’s protest was a request for reinvestigation, which effectively tolled the running of the five-year period for tax collection. The court also addressed the issues raised in Prime Steel’s Supplemental Memorandum, including the absence of a Letter of Authority (LOA) and the alleged violation of due process.

    The Supreme Court (SC) took a different view on the matter of due process. While the CTA En Banc acknowledged that it could rule on related issues even if not stipulated by the parties, the SC emphasized that any resolution should align with the rules of evidence. According to the SC, the CTA may consider arguments raised for the first time on appeal only if these arguments are related to the principal issue, necessary for the orderly disposition of the case, and do not require the presentation of additional evidence.

    The Supreme Court found that the issue of the violation of Prime Steel’s right to due process was inextricably linked to the validity of the assessment. It stated that a valid assessment is a prerequisite for the BIR’s right to collect deficiency taxes, and a resolution on the due process violation was essential for a comprehensive disposition of the case. The SC highlighted the importance of the Preliminary Assessment Notice (PAN) stage, noting it provides an opportunity for both the taxpayer and the BIR to settle the case early, without needing to issue a Final Assessment Notice (FAN).

    The Court emphasized the importance of strict compliance with the prescribed procedure for issuing assessment notices to protect taxpayers’ rights. The SC cited Commissioner of Internal Revenue v. Metro Star Superama, Inc., where it held that sending a PAN is an integral part of due process in issuing a deficiency tax assessment. Also, the Court cited Commissioner of Internal Revenue v. Yumex Philippines Corp., highlighting that the BIR should strictly observe the 15-day period for a taxpayer to reply to a PAN before issuing the FAN/FLD. As reiterated by the Court:

    Only after receiving the taxpayer’s response or in case of the taxpayer’s default can respondent issue the FLD/FAN.

    The Supreme Court firmly disagreed with the CTA’s conclusion that there was substantial compliance with due process. The Court emphasized that the BIR completely ignored the 15-day period by issuing the FAN and FLD before Prime Steel could submit its reply to the PAN. The Court stated that even if Prime Steel was able to file a protest to the FLD/FAN, it did not negate the violation of due process. According to the Supreme Court, such violations render the assessment void and without effect, citing the case of Commissioner of Internal Revenue v. Avon Products Manufacturing, Inc.:

    Well-settled is the rule that an assessment that fails to strictly comply with the due process requirements set forth in Section 228 of the Tax Code and Revenue Regulations No. 12-99 is void and produces no effect.

    The Supreme Court’s decision underscores the critical importance of adhering to due process requirements in tax assessments. The premature issuance of a Final Assessment Notice (FAN) without awaiting the taxpayer’s response to a Preliminary Assessment Notice (PAN) constitutes a violation of due process, rendering the assessment null and void. This ruling reinforces the necessity for strict compliance with procedural guidelines to protect taxpayers’ rights and ensure fairness in tax administration.

    FAQs

    What was the key issue in this case? The key issue was whether the BIR violated Prime Steel’s right to due process by issuing a Final Assessment Notice (FAN) before the 15-day period to respond to the Preliminary Assessment Notice (PAN) had lapsed.
    What is a Preliminary Assessment Notice (PAN)? A PAN is a notice issued by the BIR informing a taxpayer of a preliminary assessment of tax deficiencies. It allows the taxpayer an opportunity to respond and present their side before a final assessment is made.
    What is a Final Assessment Notice (FAN)? A FAN is a formal notice issued by the BIR to a taxpayer, stating the final amount of tax deficiency assessed after considering the taxpayer’s response to the PAN or if no response was received within the prescribed period.
    Why is the 15-day response period to a PAN important? The 15-day response period is crucial because it provides taxpayers with a chance to contest the preliminary assessment, present additional information, and potentially resolve the issue before a final assessment is issued.
    What happens if the BIR violates due process in issuing an assessment? If the BIR violates due process, such as prematurely issuing a FAN, the assessment is considered void and has no legal effect. This means the taxpayer is not legally obligated to pay the assessed deficiency.
    What did the Court of Tax Appeals (CTA) initially rule? The CTA Third Division initially partially granted Prime Steel’s petition, canceling the deficiency VAT assessment but upholding the deficiency income tax assessment. The CTA En Banc later affirmed this ruling.
    On what grounds did the Supreme Court reverse the CTA’s decision? The Supreme Court reversed the CTA’s decision because the BIR had violated Prime Steel’s right to due process by issuing the FAN before the 15-day period to respond to the PAN had expired.
    What is the effect of the Supreme Court’s decision on Prime Steel? The Supreme Court’s decision effectively canceled the deficiency tax assessments issued against Prime Steel for the taxable year 2005, relieving them of the obligation to pay the assessed amount.

    This case emphasizes the importance of due process in tax assessments and serves as a reminder to the BIR to strictly adhere to the procedural requirements outlined in the Tax Code and relevant regulations. Taxpayers should be aware of their rights and the proper procedures to follow when facing tax assessments to ensure fair treatment and protect their interests.

    For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

    Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
    Source: PRIME STEEL MILL, INC. vs. COMMISSIONER OF INTERNAL REVENUE, G.R. No. 249153, September 12, 2022

  • Navigating Tax Assessments: The Critical Role of Due Process and Timely Notices

    The Importance of Due Process and Timely Notices in Tax Assessments

    Commissioner of Internal Revenue v. Unioil Corporation, G.R. No. 204405, August 04, 2021

    Imagine receiving a hefty tax bill out of the blue, with no clear explanation of why you owe it or how it was calculated. This scenario is not just frustrating but can also be legally invalid, as demonstrated in the Supreme Court case of Commissioner of Internal Revenue v. Unioil Corporation. The central issue in this case was whether the Commissioner of Internal Revenue (CIR) properly followed due process in assessing Unioil Corporation for deficiency withholding taxes. The case underscores the importance of timely notices and clear communication in tax assessments, ensuring taxpayers are not left in the dark about their obligations.

    In this case, Unioil Corporation faced assessments for deficiency withholding tax on compensation and expanded withholding tax for the year 2005, totaling P536,801.10. The key question was whether the CIR had issued a Preliminary Assessment Notice (PAN) and if Unioil had received it, as required by law. The Court of Tax Appeals (CTA) and eventually the Supreme Court ruled in favor of Unioil, highlighting the CIR’s failure to provide clear and timely notices, thus invalidating the assessments.

    Legal Context

    The legal framework governing tax assessments in the Philippines is primarily outlined in the National Internal Revenue Code (NIRC) and its implementing regulations. Section 228 of the NIRC mandates that before an assessment can be made, the taxpayer must be notified in writing of the law and facts on which the assessment is based. This requirement is crucial to ensure that taxpayers are given a fair opportunity to understand and contest any tax liability.

    Similarly, Section 3 of Revenue Regulations (RR) No. 12-99 details the due process requirement in the issuance of a deficiency tax assessment. It outlines four stages: Notice for Informal Conference, Preliminary Assessment Notice (PAN), Formal Letter of Demand and Assessment Notice, and Administrative Decision on a Disputed Assessment. Each stage must be followed meticulously to uphold the taxpayer’s right to due process.

    Key terms such as “Preliminary Assessment Notice” (PAN) and “Formal Letter of Demand” (FLD) are critical in this context. A PAN informs the taxpayer of the proposed assessment and the reasons behind it, allowing them to respond before a final assessment is made. The FLD, on the other hand, is the final notice that includes a demand for payment and must also state the legal and factual bases for the assessment.

    For instance, consider a small business owner who receives a PAN. This notice gives them the chance to review their records and possibly dispute the proposed assessment before it becomes final. If the PAN is not issued or received, the business owner might be unfairly burdened with an unexpected tax liability.

    Case Breakdown

    The journey of Unioil Corporation through the Philippine legal system began with a Formal Letter of Demand and Final Assessment Notice (FAN) received on January 26, 2009, for deficiency withholding taxes for the year 2005. Unioil protested the assessment, arguing that it had not received the required PAN, which is a prerequisite for a valid assessment.

    The case first went to the CTA Third Division, where Unioil argued that the absence of a PAN and the lack of clear factual and legal bases in the FAN rendered the assessment void. The CTA Third Division agreed, emphasizing that the CIR failed to prove Unioil’s receipt of the PAN. The court stated, “In the case at bar, [UNIOIL] denied receiving the Preliminary Assessment Notice. It follows that it is incumbent upon [the CIR] to prove the receipt of the subject assessment notice by contrary evidence.”

    The CIR appealed to the CTA En Banc, but the decision was upheld. The En Banc court reiterated, “The law and the regulations are clear on the requirements for procedural due process on the issuance of assessment for deficiency taxes. Full and complete compliance with these requirements is mandatory to ensure the validity of the assessment.”

    When the case reached the Supreme Court, the CIR attempted to introduce new evidence of the PAN’s issuance and Unioil’s receipt. However, the Supreme Court ruled that this evidence should have been presented at the CTA level and could not be considered at this stage. The Court emphasized, “The CIR’s failure to comply with the notice requirements under Section 228 of the 1997 NIRC effectively denied Unioil of its right to due process. Consequently, the CIR’s assessment was void.”

    The procedural steps in this case highlight the importance of:

    • Issuing a PAN before a FAN
    • Proving the taxpayer’s receipt of the PAN
    • Ensuring that the FAN clearly states the legal and factual bases for the assessment
    • Adhering to the three-year prescriptive period for assessments

    Practical Implications

    This ruling reinforces the necessity for tax authorities to adhere strictly to procedural requirements when assessing taxes. It serves as a reminder to taxpayers to be vigilant about receiving and responding to notices from the tax authorities.

    For businesses, this case underscores the importance of maintaining detailed records and promptly responding to any tax notices. If a PAN is received, businesses should review their records and, if necessary, file a protest within the prescribed period.

    Property owners and individuals should also be aware of their rights to due process in tax assessments. If they receive a tax notice, they should ensure it includes all required information and seek legal advice if they believe the assessment is invalid.

    Key Lessons:

    • Always verify receipt of a PAN before a FAN is issued.
    • Maintain thorough records to dispute any discrepancies in tax assessments.
    • Seek legal counsel if you believe a tax assessment violates due process.

    Frequently Asked Questions

    What is a Preliminary Assessment Notice (PAN)?

    A PAN is a notice issued by the tax authority that informs the taxpayer of a proposed tax assessment and the reasons behind it. It gives the taxpayer an opportunity to respond before the assessment becomes final.

    Why is the PAN important?

    The PAN is crucial because it ensures that taxpayers are informed of any proposed tax liabilities and have a chance to contest them before they become final. Without a PAN, the final assessment may be considered void.

    What happens if I don’t receive a PAN?

    If you do not receive a PAN, any subsequent Final Assessment Notice (FAN) may be invalid, as the tax authority has not followed due process. You should seek legal advice to contest the assessment.

    Can the tax authority assess taxes after the three-year prescriptive period?

    Generally, no. The tax authority must assess taxes within three years from the last day prescribed by law for filing the return. Exceptions include cases of fraud or failure to file a return.

    What should I do if I receive a tax assessment?

    Review the assessment carefully to ensure it includes the legal and factual bases for the tax liability. If you disagree with the assessment, file a protest within the prescribed period and seek legal advice.

    ASG Law specializes in tax law. Contact us or email hello@asglawpartners.com to schedule a consultation.

  • Due Process in Philippine Tax Assessments: The Critical Role of the Preliminary Assessment Notice

    Protecting Taxpayer Rights: Why a Preliminary Assessment Notice is Non-Negotiable in the Philippines

    In the Philippines, the Bureau of Internal Revenue (BIR) wields significant power to assess and collect taxes. However, this power is not absolute. Philippine law and jurisprudence meticulously safeguard taxpayer rights, ensuring due process is observed at every stage of tax assessment. A cornerstone of this protection is the Preliminary Assessment Notice (PAN). In essence, this Supreme Court case emphasizes that before the BIR can demand tax payments, they must first issue a valid PAN, informing taxpayers of the initial findings and giving them a chance to respond. Failure to issue a PAN, except in very specific circumstances, renders the entire tax assessment void, safeguarding businesses and individuals from potentially erroneous or arbitrary tax demands.

    G.R. No. 185371, December 08, 2010

    INTRODUCTION

    Imagine receiving a hefty tax bill out of the blue, without any prior warning or explanation. For businesses, this can disrupt operations and strain financial resources. For individuals, it can cause significant stress and uncertainty. This scenario highlights the crucial importance of due process in tax assessments. The Philippine legal system recognizes that while taxation is the lifeblood of the government, it must be exercised fairly and lawfully, respecting the rights of taxpayers.

    The case of Commissioner of Internal Revenue v. Metro Star Superama, Inc. revolves around this very principle. Metro Star, a cinema operator, was assessed deficiency value-added tax (VAT) and withholding tax for 1999. The BIR claimed to have sent a Preliminary Assessment Notice (PAN), but Metro Star denied receiving it. The central legal question became: Is a Preliminary Assessment Notice mandatory for a valid tax assessment, or is a Final Assessment Notice (FAN) sufficient? The Supreme Court’s decision in this case provides a definitive answer, reinforcing the taxpayer’s right to due process and clarifying the BIR’s procedural obligations.

    LEGAL CONTEXT: Due Process and the Mandatory PAN

    The right to due process is a fundamental constitutional guarantee in the Philippines, enshrined in Section 1, Article III of the 1987 Constitution, stating, “No person shall be deprived of life, liberty, or property without due process of law…” This principle extends to tax assessments, ensuring fairness and preventing arbitrary actions by the government.

    Section 228 of the National Internal Revenue Code (NIRC) of 1997, as amended, explicitly outlines the procedure for protesting assessments, stating: “When the Commissioner or his duly authorized representative finds that proper taxes should be assessed, he shall first notify the taxpayer of his findings… The taxpayers shall be informed in writing of the law and the facts on which the assessment is made; otherwise, the assessment shall be void.” This provision mandates that taxpayers must be notified of the BIR’s initial findings *before* a final assessment is issued, except in specific, limited circumstances such as mathematical errors or discrepancies in withholding taxes.

    Revenue Regulations (RR) No. 12-99 further clarifies this due process requirement, detailing the “Mode of procedures in the issuance of a deficiency tax assessment.” Section 3.1.2 of RR No. 12-99 specifically addresses the Preliminary Assessment Notice (PAN): “If after review and evaluation… it is determined that there exists sufficient basis to assess the taxpayer for any deficiency tax or taxes, the said Office shall issue to the taxpayer, at least by registered mail, a Preliminary Assessment Notice (PAN) for the proposed assessment, showing in detail, the facts and the law, rules and regulations, or jurisprudence on which the proposed assessment is based…” The regulation emphasizes the PAN’s purpose: to inform the taxpayer of the proposed assessment’s basis and provide an opportunity to respond.

    Philippine jurisprudence has consistently upheld the importance of proper notice in tax assessments. In Barcelon, Roxas Securities, Inc. v. Commissioner of Internal Revenue, the Supreme Court reiterated that “if the taxpayer denies ever having received an assessment from the BIR, it is incumbent upon the latter to prove by competent evidence that such notice was indeed received by the addressee.” This highlights that the burden of proof rests on the BIR to demonstrate that the required notices, including the PAN, were duly served to the taxpayer.

    CASE BREAKDOWN: Metro Star’s Fight for Due Process

    The legal battle began when the BIR issued a Letter of Authority (LOA) in January 2001 to examine Metro Star’s books for the 1999 taxable year. Despite several requests and a Subpoena Duces Tecum, Metro Star allegedly failed to present its records. Consequently, the BIR proceeded with an investigation based on the “best evidence obtainable,” issuing a Preliminary 15-day Letter in November 2001, followed by a Formal Letter of Demand (FLD) and Assessment Notice in April 2002 for deficiency VAT and withholding taxes amounting to P292,874.16.

    Metro Star contested the assessment, arguing that they never received a Preliminary Assessment Notice (PAN). They filed a Motion for Reconsideration with the BIR, which was denied. Undeterred, Metro Star elevated the case to the Court of Tax Appeals (CTA).

    Here’s a breakdown of the procedural journey:

    1. Regional Director’s Letter of Authority (LOA) (Jan 2001): BIR initiates tax examination.
    2. Preliminary 15-day Letter (Nov 2001): BIR informs Metro Star of preliminary findings of deficiency taxes.
    3. Formal Letter of Demand (FLD) and Assessment Notice (Apr 2002): BIR officially assesses deficiency taxes of P292,874.16.
    4. Motion for Reconsideration (July 2004): Metro Star challenges the assessment with the BIR.
    5. BIR Decision Denying Motion for Reconsideration (Feb 2005): BIR upholds the assessment.
    6. Petition for Review to CTA Second Division (2005): Metro Star appeals to the CTA.
    7. CTA Second Division Decision (Mar 2007): CTA rules in favor of Metro Star, voiding the assessment due to lack of PAN.
    8. CIR Motion for Reconsideration (2007): CIR seeks reconsideration from CTA Second Division, denied.
    9. Petition for Review to CTA En Banc (2007): CIR appeals to CTA En Banc.
    10. CTA En Banc Decision (Sep 2008): CTA En Banc affirms CTA Second Division, dismissing CIR’s petition.
    11. Motion for Reconsideration (2008): CIR seeks reconsideration from CTA En Banc, denied.
    12. Petition for Review to Supreme Court (2008): CIR elevates the case to the Supreme Court.

    The CTA Second Division sided with Metro Star, finding no proof of PAN receipt. The CTA En Banc affirmed this decision. When the case reached the Supreme Court, the sole issue was whether Metro Star was denied due process. The Supreme Court upheld the CTA’s ruling, emphasizing the mandatory nature of the PAN.

    The Supreme Court highlighted the BIR’s failure to provide evidence of PAN service, stating: “The Court agrees with the CTA that the CIR failed to discharge its duty and present any evidence to show that Metro Star indeed received the PAN dated January 16, 2002. It could have simply presented the registry receipt or the certification from the postmaster that it mailed the PAN, but failed.”

    Furthermore, the Court underscored the substantive, not merely formal, nature of the PAN requirement: “Indeed, Section 228 of the Tax Code clearly requires that the taxpayer must first be informed that he is liable for deficiency taxes through the sending of a PAN. He must be informed of the facts and the law upon which the assessment is made. The law imposes a substantive, not merely a formal, requirement. To proceed heedlessly with tax collection without first establishing a valid assessment is evidently violative of the cardinal principle in administrative investigations – that taxpayers should be able to present their case and adduce supporting evidence.”

    PRACTICAL IMPLICATIONS: Protecting Your Business from Invalid Tax Assessments

    This Supreme Court decision has significant practical implications for businesses and individual taxpayers in the Philippines. It reinforces the importance of due process in tax assessments and clarifies the BIR’s procedural obligations. The ruling serves as a strong reminder that the PAN is not a mere formality but a critical step in ensuring taxpayer rights are protected.

    For businesses, this case underscores the need to:

    • Establish robust mail receipt procedures: Ensure that all incoming mail, especially from government agencies like the BIR, is properly logged and tracked.
    • Maintain meticulous records: Keep detailed records of all tax-related communications, including received notices and responses sent.
    • Seek professional advice immediately: Upon receiving any communication from the BIR, consult with a tax lawyer or accountant to understand your rights and obligations.

    Key Lessons from CIR v. Metro Star:

    • PAN is Mandatory: Except in very limited exceptions, the BIR must issue a Preliminary Assessment Notice before a Final Assessment Notice.
    • BIR Bears the Burden of Proof: If a taxpayer denies receiving a PAN, the BIR must prove that it was indeed sent and received.
    • Lack of PAN = Void Assessment: Failure to issue a PAN, when required, renders the tax assessment invalid and unenforceable.
    • Due Process is Paramount: Taxpayers have a constitutional right to due process, which includes the right to be informed of the basis of a tax assessment and to respond to it.

    FREQUENTLY ASKED QUESTIONS (FAQs) about Preliminary Assessment Notices

    Q1: What is a Preliminary Assessment Notice (PAN)?

    A: A PAN is the BIR’s initial written notification to a taxpayer that proposes a deficiency tax assessment. It outlines the factual and legal basis for the proposed assessment and gives the taxpayer an opportunity to respond and present their side before a final assessment is issued.

    Q2: When is the BIR NOT required to issue a PAN?

    A: Section 228 of the NIRC and RR No. 12-99 list specific exceptions where a PAN is not required. These include cases of mathematical errors on the tax return, discrepancies in withholding taxes, certain refund/tax credit situations, unpaid excise taxes, and sale of tax-exempt goods to non-exempt persons.

    Q3: What should I do if I receive a PAN?

    A: Carefully review the PAN, noting the factual and legal basis for the proposed assessment. Gather relevant documents and evidence to support your position. You typically have 15 days from receipt to respond to the PAN. It is highly advisable to consult with a tax professional to prepare a comprehensive and effective response.

    Q4: What happens if I don’t respond to a PAN?

    A: If you fail to respond to the PAN within 15 days, the BIR may proceed to issue a Formal Assessment Notice (FAN) based on their initial findings. This underscores the importance of promptly addressing a PAN.

    Q5: What if I receive a Final Assessment Notice (FAN) but never received a PAN?

    A: Based on the Metro Star case, if you can demonstrate that you did not receive a PAN (and none of the exceptions apply), you have strong grounds to argue that the assessment is void due to a violation of your right to due process. Seek legal advice immediately to challenge the assessment.

    Q6: How can I prove I didn’t receive a PAN?

    A: A direct denial of receipt shifts the burden to the BIR to prove they sent the PAN. While proving a negative can be challenging, maintaining organized records of incoming mail and communication can be helpful. The BIR should ideally present registry receipts or certifications from the post office as proof of mailing.

    Q7: Is sending a PAN by ordinary mail sufficient?

    A: RR No. 12-99 specifies that the PAN should be sent “at least by registered mail.” While the Supreme Court decision doesn’t explicitly rule out ordinary mail, registered mail provides stronger proof of sending and receipt, making it the preferred method for the BIR to ensure due process.

    Q8: Does this case mean I can always avoid paying taxes if I claim I didn’t receive a PAN?

    A: No. This case emphasizes procedural due process. Taxpayers are still obligated to pay correct taxes. However, the BIR must follow the proper procedures, including issuing a PAN when required. This case provides a legal basis to challenge assessments where due process is violated due to the absence of a PAN, but it does not excuse taxpayers from their tax obligations.

    ASG Law specializes in Philippine taxation law and can assist businesses and individuals in navigating complex tax assessment issues. Contact us or email hello@asglawpartners.com to schedule a consultation.