THE Commission on Audit has denied petitions for money claim filed by the Bureau of Internal Revenue (BIR) against the Cebu City government last year seeking to compel settlement of unpaid taxes totaling P1.95 billion.
In two separate resolutions, the COA Commission Proper cited lack of jurisdiction to decide the claim for payment of deficiency taxes.
The petitions were filed by the BIR Revenue Region No. 13 with the first one seeking to collect P671.877 million from alleged tax deficiencies in taxable year 2009 and the second one for P1.278 billion.
However, the COA pointed out that the BIR has its own powers under the law that it can wield to ensure compliance by the city government.
“The [Commission Proper] dismissed the petition for money claim for lack of jurisdiction.
The authority of the Commission may not be resorted to as a tool by other government agencies which, under the law, are equally and primarily empowered to enforce its mandates,” the commission said.
Copies of the ruling were forwarded to the Office of the City Mayor, the Cebu City Legal Office, and BIR Revenue Region No. 13.
The COA pointed out that Section 205 of RA No. 8424 or the National Internal Revenue Code (NIRC) of 1987 provides options or remedies available to the BIR, that does not require intervention on its part.
