COMMISSIONER V. REYES (TAX)

Under Section 228, an ASSESSMENT must state the facts and the law on which it is based. Otherwise, it is invalid. This is not satisfied when taxpayer is simply informed in writing of the investigation being conducted and the recommendation for the assessment of ESTATE TAX.

In these circumstances, there is denial of due process because taxpayer cannot adequately respond to the assessment. Here, there was lack of basis and insufficiency of the gross figures and details of the itemized deduction indicated in the notice letter. The assessment was based on estimates that appear to have been arbitrarily and capriciously arrived at.

RIZAL COMMERCIAL BANKING V. COMMISSIONER (TAX)

An appeal to the CTA from the inaction of the Commissioner on a protested assessment is optional as the taxpayer can wait for the actual decision before appealing. However, the exercise of one option excludes the other. Thus, if you appeal from the inaction, you can no longer appeal from the actual decision.

BPI V. COMMISSIONER (TAX)

A REQUEST FOR REINVESTIGATION which is not granted by the Commissioner does not toll the running of the 3-year period for collection after the assessment is issued.