Protector’s Services, Inc. vs Court of Appeals and CIR Summary

PROTECTOR'S SERVICES, INC., petitioner, vs. COURT OF APPEALS AND COMMISSIONER OF INTERNAL REVENUE, respondents.

G.R. No. 118176 | 2000-04-12

Computation of percentage tax, gross receipts could not be diminished by the amount paid to the subcontractor under a subcontractor arrangement
The three-year prescriptive period of tax assessment of contractors tax should be computed at the time of the filing of the final annual percentage tax return
The pendency of a taxpayer’s appeal in the CTA and the SC suspends the running of the prescriptive period to collect deficiency taxes
Salaries of security guards form part of the taxable gross receipts of a security agency for purposes of the contractors tax
Gross receipts under subcontract arrangement

D E C I S I O N

QUISUMBING, J.:

Assailed in this petition for review is the Decision¹ of the Court of Appeals dated November 28, 1994, in CA-G.R. SP No. 31825. It affirmed the judgment of the Court of Tax Appeals which had dismissed the petition for review of assessments made by the Commissioner of Internal Revenue imposing deficiency percentage taxes on petitioner for the years 1983, 1984 and 1985. The dispositive portion of the CTA's decision states:

"WHEREFORE, in all the foregoing, this case is hereby DISMISSED for lack of jurisdiction--the subject assessments having become final and unappealable."²

The facts are...