Tax collection case

notices sent to the taxpayer did not expressly mention that the construction firm filed false return. thus evading the payment of income and value-added taxes, R518.2 million and R181.2 million, respectively.

Otherwise, the BIR should have informed the taxpayer on the law and facts on which the tax fraud assessment was made.

Court records showed that the construction company did not pay income tax as it was just a general partnership of engineers and architects unlike real estate developer.

G and W explained that as a consultant it built the two condominium towers in Global City on a build-to-own concept wherein prospective owners of condominium units pooled their funds to build them.

The court did not touch the argument of the BIR that while G and W is a general professional partnership it is really into the business of real estate developer, dismissing the case on technical ground for violating the three-year prescriptive period.

Records showed that G and W filed its 2007 return on April 11, 2008 and the the BIR should have sent its deficiency tax assessment notice to taxpayer on or before April 15, 2011.

Instead, the court said the BIR sent its final assessment notice (FAN) on February, 2012, beyond the three-year period. The CTA also noted the same delay in the sending of VAT notices.