G.R. No. 223767* - COMMISSIONER OF INTERNAL REVENUE, VS. SOUTH ENTERTAINMENT GALLERY, INC..D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE , the Petition for Review is hereby PARTLY GRANTED . Accordingly, the Formal Letter of Demand, with attached Details of Discrepancies and Assessment Notices, dated December 9, 2009; the Final Notice Before Seizure dated May 28, 2010; and the Warrant of Distraint and/or Levy dated September 1, 2010, insofar as it covers the deficiency Value-added Tax for taxable year 2007 are hereby CANCELLED and SET ASIDE . On the other hand, petitioner is hereby ORDERED to PAY the amount of P7,734,282.50, representing deficiency Income Tax, inclusive of the twenty five percent (25%) surcharge imposed under Section 248(A)(3) of the 1997 NIRC, as amended; to compute: Basic Surcharge Total Income Tax P6,187,426.00 P1,546,856.50 P7,734,282.50 In addition, petitioner is hereby ORDERED to PAY , as follows: a) Deficiency interest at the rate of twenty percent (20%) per annum on the basic deficiency Income Tax in the amount of P6,187,400.92, computed from April 15, 2008, until full payment thereof pursuant to Section 249(8) of the [1997 NIRC], as amended; and b) Delinquency at the rate of twenty percent (20%) per annum on the total deficiency taxes of P7,734,282.50 and on the twenty percent (20%) deficiency interest which have accrued from the date afore-stated in (a) computed from January 15, 2009, until full payment thereof pursuant to Section 249(C) of the 1997 NIRC, as amended. SO ORDERED.