Assuming that the mode of Protest of Mr. A is valid, did BIR commit any procedure or substantive violation of due process to grant Mr. A a favorable decision? Explain.

Explanations were not considered by the BIR is valid to warrant the filing of a Request for Reinvestigation? Explain.

Activity in Law on Business and Transfer Taxation:

 

Question: On 15 April 2018 , Mr. A (businessman and owner of McJobee), submitted and paid his 2017 Income Tax Return (ITR) to the BIR - RDO where his business is located. On 04 March 2020, the BIR assessed the ITR filed by Mr. A and found out there are deficiencies in the latter's tax duties.

Thus, on 10 March 2020, a Notice of Informal Conference (NIC) was given to Mr. A, in which Mr. A was asked to explain the said deficiency. Afterwards, despite the explanation of Mr. A and within the time allowed by law, the BIR gave a Preliminary Assessment Notice (PAN), which is complete in form and substance, to Mr. A. Mr. A replied within the time prescribe by the law. However, despite the explanation of Mr. A, after fifteen (15) days from receipt of the reply or answer of Mr. A, the BIR issued a Final Demand and Assessment Notice or FAN (complete & form & substance stating the violation of Mr. A under the National Internal Revenue Code of 1997 as amended by TRAIN Law), asking Mr. A to pay Php10,000,000.00 as tax deficiency.

Feeling aggrieved, Mr. A filed a Request for Reinvestigation arguing that the BIR never listened to his explanations, thus a protest through request for reinvestigation is proper.

Answer rating: 100% (QA)

Based on the information provided it seems that there might be procedural and substantive violations ... View the full answer