Pacquiao scores knockout win vs. BIR over P2.26B tax deficiency
Senator Manny Pacquiao is on a winning streak.
After having overcome Agentinian boxing champion Lucas Matthysse, Pacquiao this time scored a bout against the Bureau of Internal Revenue (BIR).
The Court of Tax Appeals (CTA) has issued a resolution ordering the BIR to “cease and halt its collection of the P2.26 billion deficiency tax assessments of Pacquiao and his wife Jinkee.
“Respondent [BIR] is ordered to cease and desist from implementing the Final Decision on Disputed Assessment (FDDA) and from collecting the subject deficiency tax assessments issued against petitioners for taxable years 2008 and 2009 for lack of merit,” the CTA said.
With this, the CTA also ordered the BIR “to lift the warrants of distraint and/or Levy and Garnishment issued in relation to the same FDDA and deficiency tax assessments, pending the final disposition of this case.”
The CTA acted on the petition of the couple who questioned the BIR assessment for taxable years 2008 and 2009.
The couple complained that the BIR proceeded with the collection process even without a FFDA which is needed to give the taxpayer the opportunity to question the final decision of the BIR.
They added the BIR also a tax lien has been issued against their properties as well as a warrant of distraint and levy and garnishment to cover the liability.
A tax lien attaches for as long as the deficiency taxes as well as the interest and surcharges have not been paid.