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  • REPUBLIC OF THE PHILIPPINES vs. LIM TIAN TENG SONS and CO., INC.

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    Lim Tian Teng Sons & Co. exported copra and filed a tax return showing a loss. The Commissioner of Internal Revenue (CIR) disallowed the loss and assessed additional taxes. Lim requested a reinvestigation of its tax liability for 1952 but the CIR instead referred the case to the Solicitor General for collection. The CIR later said a reinvestigation would occur if Lim waived the statute of limitations, but Lim did not waive this. The CIR then filed a collection action and the court ruled the tax assessment was valid. On appeal, the issue was whether the tax assessment was final and executable, and the court held that it was as Lim failed to appeal the assessment to the Court of Tax Appeals within 30

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    REPUBLIC OF THE PHILIPPINES vs. LIM TIAN TENG SONS and CO., INC.,

    Original Title

    REPUBLIC OF THE PHILIPPINES vs. LIM TIAN TENG SONS and CO., INC.,

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    Lim Tian Teng Sons & Co. exported copra and filed a tax return showing a loss. The Commissioner of Internal Revenue (CIR) disallowed the loss and assessed additional taxes. Lim requested a reinvestigation of its tax liability for 1952 but the CIR instead referred the case to the Solicitor General for collection. The CIR later said a reinvestigation would occur if Lim waived the statute of limitations, but Lim did not waive this. The CIR then filed a collection action and the court ruled the tax assessment was valid. On appeal, the issue was whether the tax assessment was final and executable, and the court held that it was as Lim failed to appeal the assessment to the Court of Tax Appeals within 30

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    © All Rights Reserved
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    1 views1 page

    REPUBLIC OF THE PHILIPPINES vs. LIM TIAN TENG SONS and CO., INC.

    Uploaded by

    AA K H
    Lim Tian Teng Sons & Co. exported copra and filed a tax return showing a loss. The Commissioner of Internal Revenue (CIR) disallowed the loss and assessed additional taxes. Lim requested a reinvestigation of its tax liability for 1952 but the CIR instead referred the case to the Solicitor General for collection. The CIR later said a reinvestigation would occur if Lim waived the statute of limitations, but Lim did not waive this. The CIR then filed a collection action and the court ruled the tax assessment was valid. On appeal, the issue was whether the tax assessment was final and executable, and the court held that it was as Lim failed to appeal the assessment to the Court of Tax Appeals within 30

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    REPUBLIC OF THE PHILIPPINES vs. LIM TIAN TENG SONS and CO., INC.

    ,
    G.R. L-21731, March 31, 1966

    Facts:
    Lim Tian Teng Sons & Co is engaged in the Exportation of Copra, with its
    principal office at Cebu City. Before exporting the copra, they weighed before shipment.
    They collect 95% of the amount and the balance shall be subject to final liquidation and
    adjustment. Lim Tian Teng Son & co. filed its income tax return for the year 1952. They
    filed a loss of income as of December 31, 1951. The CIR eliminated the beginning
    inventory for 1952 and considered income for 1951. Hence, disallowed. CIR assesses a
    deficiency income tax of 10,074.00 and 50% surcharge. Lim Tian Teng Sons & co.
    Requested for reinvestigation for 1952 income tax liability. However, CIR they did not
    reply instead the case was referred to the Solicitor General for Collection and demand
    for such tax liabilities. However, later on, the CIR replied that reinvestigation be granted
    upon execution of a waiver of the statute limitation and even extended the compliance
    herewith. Lim Tian Teng Sons & Co. failed to file a waiver of the statute of limitation.
    Hence CIR filed an action before CFI of Cebu for collection of deficiency tax. The lower
    court ruled that the income tax assessment is valid final and executory and Lim & co.
    ordered to pay with interest. CIR moved for reconsideration since there was no 5%
    surcharge imposed. Hence, denied since taxpayers were already assessed 50%
    surcharge. On appeal, Lim assailed the jurisdiction of the lower court and questioned
    the legality of the assessment tax liability since the Lower court has no jurisdiction over
    the case to entertain since the case had not yet issued a final decision on the request
    for reinvestigation.

    Issue:
    Whether or not the court erred in considering the assessment notice was final
    and executory

    Held:
    No. The collection of such tax may begun without assessment. CIR is authorize
    to collect the delinquent before he can collect the tax either by distraint and levy or by
    judicial action or both simultaneously. The only requisite before CIR can collect the tax
    is that he must first assess the same within the time fixed by law And in case of false or
    fraudulent return with intent to evade the tax or failure to file a return. The legislative
    policy to allow the collector of internal revenue much latitude in the speedy and prompt
    collection of taxes. Republic act 1125 states that no appeal taken to the court of tax
    appeals for the decision of the collector of Internal Revenue without the taxpayer to
    deposit the amount claimed or to file surety bond not more than the double the amount
    with the court. Taxpayer failure to appeal to Court of tax appeals reckoning the 30 days
    made the assessment in question final executory and demandable.

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