DECISION
DECISION
This is a Petition for Review under Rule forty-five of the Rules of Court seeking to reverse and set aside the Decision of the Court of Tax Appeals En Banc affirming the earlier decision of its First Division in CTA Case Number seven thousand nine hundred sixty-five, cancelling and withdrawing petitioner's formal letter of demand and assessment notices to respondent for having been issued beyond the prescriptive period provided by law.
The Facts
The Facts
On April fifteen, two thousand two, respondent filed with the Bureau of Internal Revenue its Annual Income Tax Return for taxable year ending December thirty-one, two thousand one. Respondent also filed its Monthly Remittance Returns of Final Income Taxes Withheld, its Monthly Remittance Returns of Expanded Withholding Tax, and its Monthly Remittance Return of Income Taxes Withheld on Compensation for year ending December thirty-one, two thousand one.
On September twenty-five, two thousand three, respondent received a copy of the Letter of Authority dated September eight, two thousand three signed by Regional Director Nestor S. Valeroso authorizing Revenue Officer Nenita L. Crespo of Revenue District Office forty-three to examine respondent's books of accounts and other accounting records for income and withholding taxes for the period covering January one, two thousand one to December thirty-one, two thousand one.
Ma. Lida Sarmiento, respondent's Director of Finance, subsequently executed several waivers of the statute of limitations to extend the prescriptive period of assessment for taxes due in taxable year ending December thirty-one, two thousand one, the details of which are summarized as follows:
On September twenty-six, two thousand five, respondent received from the Bureau of Internal Revenue a Preliminary Assessment Notice dated September sixteen, two thousand five to which it filed a Reply.
On October twenty-five, two thousand five, respondent received a Formal Letter of Demand and Assessment Notices/Demand Number forty-three-seven hundred thirty-four both dated October seventeen, two thousand five from the Bureau of Internal Revenue, demanding payment of deficiency income tax, final withholding tax, expanded withholding tax, increments for late remittance of taxes withheld, and compromise penalty for failure to file returns, late filing, and late remittance of taxes withheld, in the total amount of three hundred thirteen thousand three hundred thirty-nine thousand six hundred ten. forty-two pesos for the taxable year ending December thirty-one, two thousand one.
On November twenty-three, two thousand five, respondent filed its protest against the Formal Letter of Demand and requested the reinvestigation of the assessments. On July twenty-eight, two thousand nine, respondent received a letter from the Bureau of Internal Revenue denying its protest. Thus, on August twenty-seven, two thousand nine, respondent filed a Petition for Review before the Court of Tax Appeals docketed as CTA Case Number seven thousand nine hundred sixty-five.