Tax Updates August 2022 (SyCipLaw Tax Issues And Practical Solutions (T.I.P.S.) Vol. 19)

1. Can a corporation which availed itself of the tax amnesty under Republic Act No. 9480 be held liable for deficiency withholding taxes?

Yes. In Bureau of Internal Revenue vs. Samuel Cagang (G.R. No. 230104, March 16, 2022), the Supreme Court upheld the deficiency withholding tax assessment against a taxpayer, notwithstanding the fact that the taxpayer availed itself of a tax amnesty. In this case, the Bureau of Internal Revenue (BIR) assessed deficiency income taxes, VAT, and expanded withholding taxes against CEDCO, Inc., where Samuel Cagang (Cagang) acted as treasurer. CEDCO argued that since it had already filed its amnesty tax return and paid the corresponding taxes thereon, it cannot be assessed deficiency taxes.