c. Burden of Proof in Tax Assessments

Presumed Correctness of Tax Assessments

General Rule: All presumptions are in favor of the correctness of tax assessments. When the assessment is made by the CIR or his duly authorized agents, the same is presumed correct and made in good faith. The taxpayer has the duty to prove otherwise. (CIR v. Wyeth Suaco Laboratories, Inc., G.R. No. 76281, 30 September 1991)¹

Exception: The prima facie correctness of a tax assessment does not apply to “naked assessments”, which are assessments without any foundation, the determination of the tax due is without rational basis (Commission of Internal Revenue v. Hantex Trading Co., Inc., G.R. No. 136975, 31 March 2005)² Assessment is discretionary; not compellable by mandamus.

General Rule: Mandamus will not lie for it will constitute judicial encroachment on executive functions. (Meralco Securities Corporation v. Savellano, G.R. No. L-36181, 23 October 1982)³

Exception: Mandamus will lie if the CIR acts with grave abuse of discretion. (Meralco Securities Corporation v. Savellano)