The Bureau of Internal Revenue can now push through with collecting the alleged tax liability of the Philippine International Air Terminals Company Inc or PIATCO.
This is after the 15th Division of the Court of Appeals declared the non-effectivity of the writ of preliminary injunction issued by Pasay City RTC Branch 114 last January 2010.
Due to the writ of preliminary injunction, BIR was not allowed to issue its final assessment notices against PIATCO, stopping the said bureau from collecting PIATCO’s more than a billion peso tax deficiency.
The tax liabilities stem from more than a billion peso of unpaid value-added tax on the imported materials used to contruct Terminal 3.
According to the CA, the RTC has no jurisdiction because said case is under the National Internal Revenue Code.
The appellate court also made note of the non-exhaustion of legal remedies on the part of PIATCO because instead of going straight to the RTC, they should have waited for the BIR to issue its final assessment notices which could be questioned through administrative remedies and then appealed to the CA.
