STRATEGIC TAX MANAGEMENT

(TAX 304)

Submitted to:
Mr. Carl Joseph Fuerzas

Submitted by:
Gargar, Russel Jane D.
Cadorna, Joy Rose
De Guzman, Jessel Mae A.
Pahayahay, Christy Joy M.
College of Saint Columban
San Francisco District, Pagadian City
Zamboanga del Sur, 7016
May 21, 2023

Bureau of Internal Revenue

San Pedro District, Pagadian City
Zamboanga del Sur, 7016
Re: Protest of Tax Assessment for 2023

Dear Ma’am/Sir:

We are writing this letter to humbly submit this Formal Protest to your good office that was
issued to us on 15th of April this year. This has reference to your Final Assessment Notice
(“FAN” for brevity) dated April 28, 2023, referring to this Non-Profit institution’s alleged
unpaid tax liabilities covering the taxable year 2020.

We would like to inform you that the said assessment has some lacking procedural acts that
omitted some methods in assessing our tax liability. Attached hereto is a basis for our protest
Sec. 228 of the National Internal Revenue Code of 1997, to wit:

SEC. 228. Protesting of Assessment. - When the Commissioner or his duly authorized
representative finds that proper taxes should be assessed, he shall first notify the taxpayer
of his findings .

The taxpayers shall be informed in writing of the law and the facts on which the
assessment is made; otherwise, the assessment shall be void.

Within a period to be prescribed by implementing rules and regulations, the taxpayer

shall be required to respond to said notice. If the taxpayer fails to respond, the
Commissioner or his duly authorized representative shall issue an assessment based on
his findings.

Such assessment may be protested administratively by filing a request for reconsideration

or reinvestigation within thirty (30) days from receipt of the assessment in such form and
manner as may be prescribed by implementing rules and regulations. Within sixty (60)
days from filing of the protest, all relevant supporting documents shall have been
submitted; otherwise, the assessment shall become final.

If the protest is denied in whole or in part, or is not acted upon within one hundred eighty
(180) days from submission of documents, the taxpayer adversely affected by the
 decision or inaction may appeal to the Court of Tax Appeals within thirty (30) days from
receipt of the said decision, or from the lapse of one hundred eighty (180)-day period;
otherwise, the decision shall become final, executory and demandable.

The CSC Institution petitions this Honorable Office to have the final assessment levied against it
canceled and withdrawn on the grounds that the Formal Assessment Notice failed to
include all of the facts and legislation upon which it is based. Furthermore, there is
evidence that the prescription has already begun.

Assessed Tax for the Year 2020

1. Income Tax on:
• Rentals. 400,000
• Interest Income from debtors 150,000
2. Business Tax
• School Bus as Common Carrier 150,000
3. Failure to withhold tax on the following:
• Payment to the supplier of goods 250,000
• Payment to the supplier of services 280,000
• Payment to the constructor for construction of building 1,350,000

CSC rests it case on Article XIV, Section 4 (3) of the 1987 Constitution, which reads All
revenues and assets of non-stock, non-profit educational institutions used actually,
directly, and exclusively for educational purposes shall be exempt from taxes and duties.
Upon the dissolution or cessation of the institutions, their assets shall be corporate
existence of such disposed of in the manner provided by proprietary educational
institutions, including those cooperatively owned, may likewise be entitled to such
exemptions subject to the limitations provided by law including restrictions on dividends
and provisions for reinvestment.

In view of the foregoing, I humbly and respectfully request your good office for the cancellation
and withdrawal of these alleged unpaid tax liabilities for having no legal basis.

Appropriate action taken Immediately pursuant to the provisions of BIR Citizens Charter and
R.A. 11032 will be highly appreciated.

Anticipating for your favorable and usual prompt action.

Sincerely,
College of Saint Columban