EFFECTS OF TAX AMNESTY Asia International Auctioneers, Inc. v. Commissioner of Internal Revenue G.R. No.

179115, September 26, 2012 Perlas-Bernabe, J. Facts: On August 25, 2004, Asia International Auctioneers, Inc. (AIA for brevity), a corporation operating within the Subic Special Economic Zone and is engaged in the importation and selling of used motor vehicles and heavy equipment, was assessed by the Commissioner of Internal Revenue (CIR) for deficiency Value Added Tax and Excise Tax in the amounts of P 102,535,520.00 and P4,334,715.00, respectively, or a total amount of P 106,870,235.00, inclusive of penalties and interest, for auction sales conducted on February 5, 6, 7, and 8, 2004. AIA claimed that it filed a timely protest letter through registered mail on August 30, 2004 and submitted additional supporting documents on September 24, 2004 and November 22, 2004. CIRs failure to act on the protest prompted AIA to file a petition for review before the Court of Tax Appeals on June 20, 2005. However, the CIR filed a motion to dismiss on the ground of lack of jurisdiction since AIAs failure to file its protest within the 30-day reglamentary period rendered the assessment final and executory. After trial, the Court of Tax Appeals First Division ruled that there was no sufficient evidence to prove the receipt of the protest letter by the CIR. AIA filed a motion for reconsideration but was denied; hence, this petition for review. On January 30, 2008, AIA filed a Manifestation and Motion with Leave of the Honorable Court to Defer or Suspend Further Proceedings since it availed of the Tax Amnesty Program under Republic Act 9480, known as the Tax Amnesty Act of 2007. On February 5, 2008, the Bureau of Internal Revenue issued a Certification of Qualification stating that AIA has availed and qualified for Tax Amnesty for Taxable Year 2005 and Prior Years pursuant to RA 9480. Issue: Is AIA disqualified from availing itself of the Tax Amnesty under Section 8 (a) of RA 9480? Held: No. Under Section 8 (a) of the RA 9480 withholding agents with respect to their withholding tax liabilities shall be disqualified to avail of the tax amnesty. In this case, AIA was not being assessed as withholding agent that failed to withhold or remit the deficiency VAT and excise tax but as a taxpayer who is directly liable for the said taxes. Moreover, RA 9480 does not exclude from its coverage taxpayers operating within special economic zones. Hence, AIA is qualified to avail of the Tax Amnesty under RA 9480.