6 September 2021
Yes. In Commissioner of Internal Revenue v. Court of Tax Appeals and Pilipinas Shell Petroleum Corporation (G.R. No. 210501, March 15, 2021), the Supreme Court clarified that “the subject matters of these two remedies are separate and distinct; hence, the issuance of one does not necessarily result into or preclude the other.”
If the taxpayer appeals a tax assessment, decision, ruling, or inaction mandating the payment of taxes, it may file a Motion for a Suspension Order to suspend the collection of the specific amount of taxes stated in such assessment or demand for the collection of taxes.
On the other hand, if, in appealing the tax assessment, decision, ruling or inaction, the taxpayer questions the constitutionality or validity of a tax statute or issuance, it may also seek (in the same petition) a Temporary Restraining Order (TRO) or a Writ of Preliminary Injunction (WPI) to restrain the immediate implementation of the statute or issuance.
SyCipLaw Tip: If the elements for a Suspension Order and a TRO/WPI are present, it remains prudent for a taxpayer to apply for both provisional remedies in the same petition. It must be noted though that the Supreme Court observed that a TRO/WPI appears to be a broader relief which renders unnecessary further Suspension Orders covering future assessments stemming from the assailed tax statute or issuance.
For further information, please contact:
Carina C. Laforteza, Tax Department Head,
SyCip Salazar Hernandez & Gatmaitan
cclaforteza@syciplaw.com
