Oceanic Wireless Network, Inc. V. Cir G.R. NO. 148380 December 9, 2005 Facts

OCEANIC WIRELESS NETWORK, INC. v.
CIR It is clear from the provision of Section 7 of the

NIRC, as amended by RA No. 8424, that the act of
G.R. NO. 148380 December 9, 2005 issuance of the demand letter by the Chief of the
Accounts Receivable and Billing Division does not fall
Facts: under any of the exceptions that have been mentioned
as non-delegable.
Petitioner received from the BIR deficiency tax
assessments for the taxable year 1984 in the total Section 6 of the code further provides that the
amount of P8,644,998.71. It filed its protest against the tax or any deficiency tax so assessed shall be paid upon
tax assessments and requested a reconsideration or notice and demand from the Commissioner or from his
cancellation to the BIR Commissioner. duly authorized representative. . . ."
Acting in behalf of the BIR Commissioner, then Thus, the authority to make tax assessments
Chief of the BIR Accounts Receivable and Billing may be delegated to subordinate officers. Said
Division, Mr. Severino B. Buot, denied petitiioner’s assessment has the same force and effect as that issued
request. Mr. Buot likewise requested petitioner to pay by the Commissioner himself, if not reviewed or revised
the total amount of P8,644,998.71 within 10 days from by the latter such as in this case.
receipt thereof, otherwise the case shall be referred to
the Collection Enforcement Division of the BIR National A request for reconsideration must be made
Office for the issuance of a warrant of distraint and levy within thirty (30) days from the taxpayer's receipt of the
without further notice. tax deficiency assessment, otherwise, the decision
becomes final, unappealable and therefore,
Upon petitioner's failure to pay within the demandable. A tax assessment that has become final,
prescribed period, the Assistant Commissioner for executory and enforceable for failure of the taxpayer to
Collection, acting for the Commissioner of Internal assail the same as provided in Section 228 can no longer
Revenue, issued the warrants of distraint and/or levy be contested.
and garnishment.
**NOTES**
Petitioner filed a Petition for Review with the
SEC. 7. Authority of the Commissioner to Delegate Power. The
CTA which the CTA dismissed for lack of jurisdiction
Commissioner may delegate the powers vested in him under the
having been filed beyond the thirty (30)-day period pertinent provisions of the Code to any subordinate official with the
reckoned from the time when the demand letter by the rank equivalent to a division chief or higher, except the following:
Chief of the BIR Accounts Receivable and Billing Division
was presumably received by petitioner. (a) The power to recommend the promulgation of rules and
regulations by the Secretary of Finance;
Petitioner filed a Motion for Reconsideration
(b) The power to issue rulings of first impression or to reverse,
arguing that the demand letter cannot be considered as revoke or modify any existing ruling of the Bureau;
the final decision of the CIR because the same was
signed by a mere subordinate and not by the (c) The power to compromise or abate under Section 204(A) and (B)
Commissioner himself. With the denial of its motion, of this Code, any tax deficiency: Provided, however, that
petitioner consequently filed a Petition for Review with assessments issued by the Regional Offices involving basic deficiency
the CA contending that there was no final decision to taxes of five hundred thousand pesos (P500,000) or less, and minor
criminal violations as may be determined by rules and regulations to
speak of because the Commissioner had yet to make a be promulgated by the Secretary of Finance, upon the
personal determination as regards the merits of recommendation of the Commissioner, discovered by regional and
petitioner's case. district officials, may be compromised by a regional evaluation board
which shall be composed of the Regional Director as Chairman, the
Assistant Regional Director, heads of the Legal, Assessment and
Issue: Collection Divisions and the Revenue District Officer having
jurisdiction over the taxpayer, as members; and
Whether or not a demand letter for tax
deficiency assessments issued and signed by a (d) The power to assign or reassign internal revenue officers to
subordinate officer who was acting in behalf of the establishments where articles subject to excise tax are produced or
kept.
Commissioner of Internal Revenue, is deemed final and
executory.
SEC. 6. Power of the Commissioner to Make Assessments and
Prescribe Additional Requirements for Tax Administration and
Held: Enforcement.'
Yes. (A) Examination of Returns and Determination of Tax Due. - After a

return has been filed as required under the provisions of this Code,
the Commissioner or his duly authorized representative may
The general rule is that the CIR may delegate authorize the examination of any taxpayer and the assessment of
any power vested upon him by law to Division Chiefs or the correct amount of tax; Provided, however, That failure to file a
to officials of higher rank but he cannot delegate the return shall not prevent the Commissioner from authorizing the
four powers granted to him under Section 7 of the NIRC. examination of any taxpayer.

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Oceanic Wireless Network, Inc. V. Cir G.R. NO. 148380 December 9, 2005 Facts

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OCEANIC WIRELESS NETWORK, INC. v.

CIR It is clear from the provision of Section 7 of the

Yes. (A) Examination of Returns and Determination of Tax Due. - After a

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