Daily Tribune‘The violation of due process is even more egregious as Maxicare was denied even the opportunity to present its evidence as would afford it a genuine opportunity to be heard, despite the clear procedural rules giving it a 60-day period within which to provide relevant supporting documents pursuant to its request for reinvestigation.’
The Supreme Court nullified the P419.7 million in deficiency value added tax imposed by the Bureau of Internal Revenue against Maxicare Healthcare Corporation (Maxicare) for taxable 2012 for denial of due process, particularly the right to present evidence.
The ruling of the high bench denied the petition filed by the BIR that challenged the 2021 decision of the Court of Tax Appeals as a full court against the BIR on violation of Maxicare's right to due process.
Citing its previous decision, the SC said that "in this case, it can be argued that the violation of due process is even more egregious as Maxicare was denied even the opportunity to present its evidence as would afford it a genuine opportunity to be heard, despite the clear procedural rules giving it a 60-day period within which to provide relevant supporting documents pursuant to its request for reinvestigation."
Ruling
Written by Associate Justice Maria Filomena D. Sing, the ruling said: "All told, as the denial of due process in this case is manifestly evident, and was clearly recognized by the CTA First Division and wholly affirmed by the CTA En Banc, there can be no finding of reversible error on the part of the CTA En Banc that would warrant the grant of the petition."
Maxicare, court records showed "is a domestic corporation organized primarily for the purpose of operating a prepaid group practice health care delivery system or a health maintenance organization."
The BIR on 28 Aug. 2014, ordered the examination of Maxicare's books of accounts from 1 Jan. 2012 to 31 December 2012.
On 27 Aug. 2015, the firm received a Preliminary Assessment Notice that assessed its deficiency VAT at P618.2 million for 2012.
Maxicare protested the assessment in a letter dated 1o Sept. 2015 and on 15 Oct. 2015, received from the BIR the final letter of demand and final assessment notice for P419.7 million including penalties and surcharges.
