Sample Request for Re-Investigation

BUREAU OF INTERNAL REVENUE

Revenue Region No. 8 - Makati

BIR Regional Office Bldg. 313 Sen. Gil Puyat Avenue,

Makati City

Attention: Mr. AAA

                 Regional Director

                                Subject: Request for Re-Investigation

                                               

Sir:

We refer to your Final Assessment Notice No. F-LA-09815-052-2017 dated May 8, 2019 which we received on May 29, 2019.

Please be informed that we would like to request for a re-investigation of the alleged deficiency income tax for taxable year 2017 as shown below:

Taxable Income per return		3,278,186.00
Add: Adjustments/disallowance
Disallowed Professional Fees due to Non-withholding	42,000.00
Disallowed Representation Expense	254,683.48
Disallowed Importations due to Non-substantiation	25,608,705.05	25,905,388.53
Taxable Income		29,183,574.53
Basic Deficiency Income Tax		8,755,072.36
Less; Tax Credits/Payments
Tax Payments	209,312.00
Creditable Tax Withheld	449,875.00
Total Tax Credits/Payments	659,187.00
Less: Unsupported Creditable Tax Withheld	449,875.00	209,312.00
Basic Deficiency Income Tax Due		8,545,760.36
Add: 12% Interest (4/16/18 to 6/28/19)		1,230,589.49
TOTAL AMOUNT DUE		9,776,349.85

DISPUTED ITEMS OF DISCREPANCIES

1.      Disallowed Importations Due to Non-substantiation – P25,608,705.05

Findings

BIR verification disclosed that the Company has not submitted the import entry declaration to support the importations, thus, disallowed as deduction from gross income pursuant to Section 34 (A)(1)(b) of the NIRC, as amended.

Company Position

All of our importations are duly supported with suppliers’ invoices, official and delivery receipts. However, we were not able to provide all the necessary documents during BIR examination because we had a hard time collating our accounting records due to limited accounting staff. We are now providing you additional documentary evidence to prove that importations recognized in the Company’s books complies with the provisions of Section 34 (A)(1)(b) of the Tax Code.

2.      Unsupported Creditable Tax Withheld – P449,875.00

Findings

BIR verification disclosed that the Creditable Tax Withheld claimed per Income Tax Return was not supported by copies of Certificate of Creditable Tax Withheld At Source (BIR Form 2307), thus disallowed pursuant to Section 2.58.3 (B) of RR No. 2-98, as amended.

Company Position

We were not able to provide the required Certificate of Creditable Tax Withheld At Source (BIR Form 2307) on time for the BIR examination because of the delay in the issuance of said certificates by our customers. We are now providing you the necessary BIR Form 2307 to prove that the creditable tax withheld claimed in the Company’s Income Tax Return comply with the provisions of Section 2.58.3 (B) of RR No. 2-98 as amended.

3.      Tax Paid per Annual Income Tax Return – P324,269.00

Company Position

BIR tax assessment considered only the tax payments per Company’s Quarterly Income Tax Return and failed to include the tax payment per Company’s Annual Income Tax Return as deduction to the deficiency income tax due. We are providing you the copy of BIR Form 1702 to support the additional tax payments for taxable year 2017.

It is our Company’s continuous commitment to comply with pertinent rules and regulation of the Bureau and to pay the right taxes. We sincerely hope that you will take the Company’s position to specific tax assessments into careful consideration.

Very truly yours,

Mr. BBB

Vice-President