CTA Case No. 7967 dated January 5, 2012 Necessity of PAN in BIR assessment

CTA Case No. 7967 dated January 5, 2012 Necessity of PAN in BIR assessment

Mr. Luang argued that the assessment is void since he did not receive a
Preliminary Assessment Notice (PAN) as prescribed under Revenue
Regulations (RR) No. 12-99. On the other hand, the CIR asserted that the
absence of a PAN did not invalidate the assessment since Mr. Luang was
able to file his protest to the FAN within the period provided by law and
regulations.

Issue:

►  Did the absence of a PAN invalidate the assessment?

Ruling:

*■   Yes. The receipt by the taxpayer of a PAN is part of the due process

requirement in the issuance of a deficiency tax assessment, the absence of which nullifies any assessment made by tax authorities.