Tax Update - Jan 27

Within how many days must a taxpayer reply/file a protest against a Preliminary Assessment Notice (PAN) and a Final Assessment Notice (FAN)?

• 30 days and 15 days

• 15 days and 30 days

• 30 days for both

• 15 days for both

True or False. The BIR may issue a Final Assessment Notice (FAN) even before the lapse of the 15-day period given to the taxpayer to file a reply to a Preliminary Assessment Notice (PAN).

• True

• False

Answer explanation

The Court highlighted that only after receiving the taxpayer's response or in case of the taxpayer's default can the BIR issue the FLD/FAN.

According to the Supreme Court, what activity must be undertaken by a foreign corporation in order to constitute as doing business in the Philippines?

• Annual reporting

• Profit-making

• Purchasing of support services

• Payment of taxes

When does the appointment of a domestic corporation as an agent constitute doing business in the Philippines?

• When the domestic corporation provides support services to its foreign clients

• When the foreign client pays agency fees

• When the domestic corporation acts in furtherance of its foreign clients’ activities

• When the foreign client and the domestic corporation enters into a service agreement

In case of a request for reinvestigation, the taxpayer must submit all relevant supporting documents within _____ days from the filing of his request/protest letter. 

• 30

• 60

• 90

• 180

Upon failure of the CIR or his authorized representative to respond to a taxpayer’s administrative appeal within 180 days from the filing of the protest or from date of submission by the taxpayer of the required documents, the following options are available to a taxpayer except:

• Appeal to the CTA within thirty (30) days from the lapse of the 180-day period

• File a Request for Reconsideration/Reinvestigation

• Await for the FDDA or the final decision of the CIR or his authorized representative

Answer explanation

If the protest is not acted upon by the CIR or his duly authorized representative within one hundred eighty (180) days counted from the date of filing of the protest in case of a request reconsideration; or from date of submission by the taxpayer of the required documents within sixty (60) days from the date of filing of the protest in case of a request for reinvestigation, the taxpayer may either: (i) appeal to the CTA within thirty (30) days after the expiration of the one hundred eighty (180)-day period; or (ii) await the final decision of the CIR or his authorized representative on the disputed assessment.

In the case of Segaya v. CIR, CTA EB No. 2526, when the FDDA was finally issued on 27 October 2017, the taxpayer had until what date to file a protest with the CTA

• 26 November 2017

• 25 April 25 2018

• 16 July 2018

Answer explanation

The taxpayer had until 26 November 2017 or 30 days from its receipt of the FDDA to file a protest with the CTA. This is considering that the 180-day period has already lapsed before the FDDA was even issued.

In this case, what is the document that the court deemed most crucial to establish entitlement to import VAT?

• SAD

• SSDT

• IEIRD

• BOC official receipt

What does “SSDT” stand for?

• Settlement Statement of Duties and Taxes

• Settlement Statement of Duties and Tariff

• Statement of Settlement of Duties and Taxes

• Statement of Settlement of Duty and Tax

Two Statement True or False:

I. If SSDT is presented, all other importations documents, or any defect or infirmities thereto, are indispensable

II. An official copy of SSDT must be presented to prove actual payment of import VAT.

• Both statements are true

• Both statements are false

• Only the first statement is true

• Only the second statement is true