CIR VERSUS SCRIPT2010 | G.R. NO. 266641

CAN THE BIR COLLECT TAXES AFTER VIOLATING DUE PROCESS? | CIR VERSUS SCRIPT2010 | G.R. NO. 266641 Can the Bureau of Internal Revenue collect deficiency taxes after issuing a final assessment before the taxpayer’s deadline to respond has expired? No. Tax assessments must comply with due process and the procedures prescribed by law. In Commissioner of Internal Revenue versus Script2010, Inc., G.R. Number 266641, February 17, 2025, the Supreme Court denied the Commissioner’s petition and upheld the cancellation of deficiency tax assessments involving income tax, value-added tax, and expanded withholding tax for taxable year 2011. Script2010 received a Preliminary Assessment Notice on December 29, 2014, with 15 days to respond. However, the BIR issued its Formal Letter of Demand and Final Assessment Notice on January 8, 2015, before the response period expired. The taxpayer filed its request for reinvestigation on January 13, 2015. KEY LEGAL DOCTRINE: The BIR must respect the taxpayer’s statutory opportunity to respond to a Preliminary Assessment Notice. Issuing a Final Assessment Notice before the response period expires violates due process and may invalidate the assessment. The Supreme Court also emphasized that the government must comply with procedural deadlines. Because the Commissioner failed to pursue the proper remedy within the prescribed period, the Court of Tax Appeals’ amended decision cancelling the assessments became final and executory. TLG LEGAL INSIGHT: The government’s power to tax is not unlimited. The BIR must follow due process, and the State is bound by the same procedural rules that govern other litigants. A final judgment cannot simply be reopened because the government failed to meet a deadline. Follow TLG EXPLAINS THE LAW for Supreme Court decisions on taxation, BIR assessments, taxpayer rights, tax appeals, and Philippine jurisprudence. Subscribe to TLG Legal Group for daily legal insights explained with precision. TLG Legal Group: Protecting Rights. Delivering Results. #CIRVersusScript2010 #GRNo266641 #BIR #BIRAssessment #TaxAssessment #DeficiencyTaxes #TaxDueProcess #TaxpayerRights #PhilippineTaxLaw #TaxLawPhilippines #BIRAudit #FinalAssessmentNotice #PreliminaryAssessmentNotice #FormalLetterOfDemand #CourtOfTaxAppeals #CTA #TaxAppeal #FinalAndExecutory #DueProcessOfLaw #SupremeCourtPH #PhilippineSupremeCourt #PhilippineJurisprudence #PhilippineLaw #CaseDigest #LawExplained #LegalEducation #BarReview #TLGExplainsTheLaw #TLGLegalGroup #DailyLawShorts