In the case of Medicard Philippines, Inc. vs. Commissioner of Internal Revenue, CTA Case No. 7948, June 5, 2014, a precedent case has been laid down, ... Taxpayer is engaged in the business of developing and promoting prepaid medical, heath maintenance, and related services (health maintenance organization; HMO). Finding discrepancies between its Income Tax and VAT Returns for the year 2006, the BIR issued to the taxpayer a Letter Notice (LN). This was followed by a Preliminary Assessment Notice (PAN) and later a Formal Assessment Notice (FAN) for deficiency VAT.The taxpayer assailed the validity of the assessment by arguing that the assessment is a nullity on the ground that it was issued without Letter of Authority (eLA) authorizing the examination of taxpayer’s books of accounts and accounting records. The CTA ruled against the taxpayer. According to the CTA, to declare that the BIR should at all times necessarily issue an eLA is to deprive her of the vast powers given her by the National Internal Revenue Code (NIRC) to make assessments and collect the right amount of taxes. While the examination of taxpayers by a revenue officer working under an eLA is one way by which the BIR collects deficiency taxes under section 13 of the NICR, section 6 does not in any way limit the power of the BIR to determine tax deficiencies only through the issuance of eLA.
A BIR Ruling that mandates you to prepare and attach a TAX BASIS FINANCIAL STATEMENTS to your Income Tax Return is presented below. Please share this RELEVANT information to others.
FREE 'INTRO TO TAX ACCOUNTING' WORKSHOP SEMINAR
to learn more the availment procedures, please click this link http://kataxclub.blogspot.com/2015/01/sign-symbol-signal-that-tax.html
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