The Bureau of Internal Revenue (BIR) has lost a P1.2 billion tax collection case before the Court of Tax Appeals (CTA) due to technicality, or serving of faulty letter of authority (LA) to investigate.
The RMO stipulates that an LA should cover a period not exceeding one taxable year and prohibits the practice of issuing LA covering audit of “unverified prior years” as what the revenue district office in Paranaque did to Gaw.
The case against Gaw was one of the earliest tax evasion case filed by then BIR Commissioner Kim S. Jacinto-Henares in 2010 under the run-after-tax-evaders (RATE) program.
It arose from the purchase of 10 lots in 2007 and 2008 in the sea-reclaimed land along Roxas Boulevard worth P4.1 billion which was sold later for P8.4 billion.
Source: Manila Bulletin
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