CTA Case No. 1806 (Decision)
REPUBI,JC OF THE PHIL1P'P i~fi8 UOURT OF TAX APPEALS QUEZON CITY � JCJ I A!t�t . . . . . ' - v .rsu X - - - - - - - - - .. """ X ., 0l ' r.-.+ r. o'' +he c s :�r "'1 0~""+- ~ ~mi ~ 1 " "'" r of (~r I" l . lc 1.,.. , +- h � .. :'err "-b am U"'+- - r J 77, 605 . �~~2 <: '"' (. ' 7 ) ' 531 . 12 ' r c +-1 ly, or C� +o �;1 �f 1153,1.}7. 04 , U.l l 0 !:' .. i. s 1">0 !� 33 2
.. DCCI~ � .... o. ... ... � t~ . ':,!,~ J~ 1 8~>6 d ... t'h~t con- l $ .. 0 k u 333
nh~I~!OV ... c .-~r . ;~ . CJtSl!f 10 . lll06 - .3 .. l 21,600. 0;, � , (-)1' ~his & OUl"+ t I'.H~OOl'di""i +o .. t1~ d. OCU00~"'~ +, f 600 . 0 . 'Wfl$ paid , Vhf.le h, b lu""cs of 921 , or.o . ' 0 � .a u der... tclt .. .,. ..o"b rnid�t~ "" n (l\) o 4ual a~n al i~sttllma~� ot f92 11 01 i 00 ooeht tli -thi:l fl 's+ vnym' r.t +-o ti due 0" eh 1 1 19.56 &.. ~d .t-he � s ubsequ.~n+ o"' t:tV(!r.y y !Ill' ~h r a e1� Ut' +o �.~ "'ch , 1965. TO .U1r~~t . �h- ~ . m~"� o f t 8 �~1d boliH"CG, B firS~� mor +gog W S CfO-nst l. +U4>e(} y e buy~ ~orr� r ~-1 ~"~ l _� ri:lv;:; � o ~ h e s ll ;r3 . Jos:.. ~. rt;r(:'t 1 0�'11':." 1'\Q Jati l(iJ n;. ~nr e:l ,...:;. . J1e �:>r ij'Vt +o +-tt 'boo�s .f +- <)ol:p or t. i �~ , tt�� i S:tm ,.. ... o'' +-h bsl ane� qf' Hte ~~~<..,urt t �or f 921, (100 . ():') was fl rr lly comr.l� + �cr 1., +h. 1 n s: 1971}-'/l. c ao.t'd o"' prym � to' ~ s s p ~ved du:r1t~g 1- h +r 1 1 ( zxh. W'tJ) is ns f llnw~u ..:'Oii..tll ".moo~" (' U. 8it por ':e ' of f:al ~ wi~t !1o:r+eeg\A - Jr:.ly 5, 1955 . ~21 ,600 . 00 ,. ,. ,.. Fnym t ~"~t 60. ! 09 1921 ' '1f)"J. 00 ~- ~ ss: r~~~ ellm~ ""t P~y <:.~ t s {�c ivt::d 19~6 1959 1961 1963-1964 l96~i>-l965 19(,5-1966 196C-1967 l967- 196G 1965-1969 .. 969-19'/IJ l 77C-1971 ( wgd) Ge.rrnP.t"' '_.sguo.rl~f Jr . ( G) . ,n �U\ ...uGU ..I-1 :L � r: :~ f i .d Put~Uo , <:am.... + ,.,t � " i~ 3 3 4
D6Cto:nn...... C . or �A� nt .l:, ~ 0,. 1806 - lt .. . wh .11E~ p � t.t+f.r,.~r ra i,.,.:.H:v�tdu.ally � ~"'~d t-he B reelo,..a ~ r s, l lh h~>v b<lle � fill"' .� th t r ir:-e �?tme tax r t . ns 1.. , ulr:.r ly, +ht:; or er ditl ....a~ d �elar or .fElport 1 ... *:h !r ,�+t,tf?"fs for ""h y 1;1;;. 1955 l"'!o.r 1~ ~l� eix� �r ..ur"".f.t f, r '"h~ sue t:ro l g '"axabl y �a.r . d �"tro~ +r 1 ~sac+loft t�hougb h sate ~ra~"'~s o- tto~ a r . ct ~ 1~ ~hs bal ~ce sh ~s a�+aoh d lr +- r. P +1- "' � ... aati.OI"t was du ~ppar """"ly t-o ~"'.eir b lief t ~+ � 1d +r '"'S c+ o ._,�.,.s ""O"" "&:x-ubl , or t-hat. 1 +he s m!\. 11 s +,. xabl , + � r1ved t-h r - peid. rc+urns ....d '" <. b �Oks n'! accou. t g �h Pt: io t � :rom 1958 ued o~ ~ ,ru JY 26 1 1965 ~p 3 3 5
I> .~ TO N - o. ... t . ~ . l!t (' t,; 180 ... ; ... pro 1,._ d: 1Ved f'r n; ._ t�~ til Of +he � f or 1d pare ls or l~"d� -... s~rv � d upor1 p{;; +-t��i"l..,..-r of") rove:mbt\!r 1 0 , 1965 V~ rrra :4- o-r ... tl�a1 ...+- a"'d 1 vy . �t d. ~: ep+ ' a.. u + . 0 us r � o+ y +; e.,.. c ... +- .e � 1d go,.,.,. � � "L � hoto .+a+ cor 1� s, of +h
1'fl� 'P' Ir .... C � r � .& � CJJ3 NO. 1 J se d l ... t: r � ~�. e.. ~ :~ i s m """"e.r wa broughf- +o t. , u � +� rti '')"' or +h<. Ch.i ~~. f , Cnllec+-ton Bx s"'ch, l)eg 1ornl f'f'ico ~~o . it, f,Jue .e , f"; City, r spil !'lder~+. 1'!ausea t h t s �uunce .,of a ,.o+io o"" s izure da+ �ed ~otto Upor motto" of pf ti t 1 o~ers , and .rt~~ du o,..ice O""o hear 1ng t ._. i .s c oul'+- issu""( '1 ~ Bct:ober 27, 1966 . �ri+ of pr limif"l :ry- inju,..c+1o" suo e"'d"" ir"~ ~ +-he eollt:.c+io... ot� .,h all� ed d fie! ~"'OY itt- co e t ax :t""' ques "io"' ~md (). r.Joir:1"i r�es ond "'+. fJ";.:: m p.toc~eei""g 1v:t,.. h +-b-~ al;.c+-io"" sale o""' the pro1~ -ttios of u ,+1""1.orer s seher:- l ., or C ,+Pber 28 , 1966, en ~ i to~ e upo" ~ he p s+lrg by p +1- t-io ...er ot a sure+y bond 1 ... tb. s r.t or �155, ('00. oo . flfhr a prov vl o f th bOI"d pos+ed by ptEr+-it.:lo"'ars, � � 337
DJ.1.1 ~ lc !0~ - c . ~ . ~ . Cf.SL hO . 1806 - 7- e!u.r i n.g �h _ y <:W' S \.,rhc,""' payta r')foo.S W'Gl' ltl~;d by +-h Bn.r e dO~"~t~ Farms . l ""O: � +'o 1:~~ Bnr elo~a b.ro+h'-,rs? r r aa- "i o,.. 1"' .;u of-1 : ~ L~. s b � 'i'\ rk.ly r p<i>r+ed 11"\ t he i "'com +ax l'l'�tu.rr-s .- f' "'-h . t-1 +-i Ol'\ers I"'O t h!� .. f'r a..,sac*- 1o"' a,.,d o er +h�: :t"ollo11W1"g ye:Yr , mq ..._he +n~oyers be charged with fraud 1~ � etr r .. t-ur~s s �o p.re �� uc � +b .1-r cl 1 of r�r s crip- b7 pe . iti a~ rs t ~ +ha ~r~ ct ~h~+ t he ri dh� o +-h Gov~ r~"merrt +o &:~ts. fiHts a.gai""s� them t-:ho d~ f1- rw re. :!v d by + h m o,.. t i:.~rc h 17 EJ nd 22 , 1965 ., '..:�! .s~��r1l .�) r. idtiJ%.' t.rs"- bis issue~ ~ht reeord.s stw�('/ tur t ~.e t:t+io"'c:r'o f'i lt~d +- heir
... o ��~~n;r c.�" � ". AS~ m. Hl<t6 - 8- th. ev t>f 1 t~.r �..,e.l .,u~- ~or 196~ or a et od of ~.,r 1956.. n 1 h� pe.rlod pro 1d +ho � +be te - e r r De~l d p.rovi.aod. lf' 3ec+- :tor. 132 p!!" the �evta""'u.e God.e hzluld: a;::~ ply, oiti..,g /! ~"" r 'Y . CoUl"t: ''I f. 'tt ,.;x A,. p � at ~� �2 ' 569 1 li.U ,IJS t� 2.3 1 l97 , 5 �C A ;19, tt~d ot +h 'f'iv -y- r.r. l~ri.,rl ��r 1d d 1,. .:: cti~., 31 . th~~4-, :'Xt.n; ;~�� "" &s providE:ld f,... oect: 1o,.. 332, nf�.,+:rn~t!.l ~ r~il r ~ 0 ftl e ~1�--( --a--P-a-.. e--2-2-6-, -a-t-r--.r-~-e -. - 339
D~t l'O ...,. � i'f'. ~-~. CAS!t. ~0 . l8<>6 .r +: a% ay a ��' d , ~~ t l' 8 �l"OO din ,} 1 ... ...ou:r+ f)J" f-b eol. o+-io �of auch t 1 ~ ... b U~" wit- ,::>t+- c. :sse s - +. +: f.i."'Y ti. w1+htn t 'f"' s t+ , fr u , or o.rd h �'- nd by l�� yp r s 1~ h 1r . -co ,.ur ror 195, o SQ�tf :r,� j 1 + "d. J tm �Jarc lon submit,.ed 1tb he1r ta t - ioh +; 111 w1t +he t" ) y ol .r . ;;or+ .a 1 ... L in... .... Eb + �tur.,s �;) <~"' ... h fl"roel�>ra T" .. r:o<! t ..c. ~or +h tme ,r i c d. F.ro 195 to l965t + '!) r OC:"l'U~ts d e>"' 1" ro.ooras l::r bo+ ( IO'lQ t-fi ~ ' C lo""� i"'ur l' ""C� 'VI r ~ .. S""'""U".Ily, so; .... . $ .... .1" .....~� 8""7 - ..., ....... "' ' ye ~~!: by +:�lcl x. :!T !"' .:r;;~ a d li) ,.. t
D . n. 0c ~� o. 18. 6 w� .. 1 - ov r .... 1 "f6 rs . 1:,1.,..5 �c 196~", rld t +r "'8 cl ly e Nl +ed in t b f" ' orpor + "� onsid� r- r. c., ic� ly ""h sol .. ,., t ... p t: OI 1 r ... 1.,,..., , .. +h y +oc h 1 rs or r1 r� s , .... l .,.h ... s r OS o-r .. +-h S�. eo~du +- . d t ul.. "'C'JU ly d ur u 0~ , X ... s t� ... h r UdU ~�- ...... ~y I'\.f. +o +-ex e .., + d tG th m. t~ . c+-, +h b ur+ .... r. 0 ds .,. ... tn 1 :ly ho +h .., ..ur. ""'0 x+ ...... ~f' ... r ""'. ac'� .... 1.r.v + ~ .l ~ p e ls 0 1 ,., +we r he f.. ...... lo~r bl'!)+h -r ..... ... h ar. 0 '!<'~ �rns, r.-c. w ch a.I' P ...0 .. "' l"'Q t'l f-o 0 f ... .... s rd A +r r ~~ t I .. w s st b i""+ ( ... t:'J"' l . . r. + 1' f' u ZO"" I 1+y, ho .s uris v c�i ~ !'\ r r t ;a ,s .. 0 t . - ct- ...... . ' ""a ... r� .. "'g +-h f ct ""d d1 l]g 1. ""' V. ""h 1 .l r +h �le c i'" ... lo d 1"' q e t'l d+ :) ... r l"'~t su j ..t +-h ..., o"' ""Y A f'1o + X r~. +h 1 r 1955 .... 195 { '1\'"). �I l� 341
- . ;c tao.� ... � ' � ft . '#I l - 11 - d ....y '� ?p ov < hy Cb1 �f o-r +h I - ve~ttg "ior- "'C 4 n:i CO CU 1 1 +- h G h . ' e. J udi 1 ~'"': I � hil cords :) no+ 1 0 t: ::'}t'l 1 ir c"" r ') ,r 2' 1. su " .. Jl .... 0 ~h +c 'i " 0 ~ Lf1 1 ,.. y ... .. o~ �x bl ./ .. . t- Y~ r 19 5� / P� y p~ .. 1+1n '.:> 1 of �h 0. +o i"'Vi + .. s i ... +-h � i o .... ov "'� �' ... 0 .. 0 0 - 6. 1 /:r . c~ ...... o+- pr �um ( als 1...... *" "' no� l:l ed c ..ei.t�lly 1 . .. or e0 Li r r l' 4-h lit-y of ..... acf-io .... 1,, t !': t c � 1 ....-. ,.. 'i'on d, fc "' .. .l 0 r sr .... +b r 0 1 ,! ..... h(;. r ' ' 1 o+- ++ r w t .l ,..ts,..~ v 0: +� c ...... �r. 1 + ~ y 1 w. ~� 3 4- "~
D!:.'.: :r� ro.~ - "! � 'f' . r, . G.':__.� ... l\1:0 " ltl06 - 12 - +he :s l . bje t- Jf v o d "" +- ht. �. x. ( !~<�c Az.., .r n .. l..~on. ..- of '1ta:x A TlCJ �l.t, ltml'l� J .t' ~e 'i? 1 !: l!.ct.l le fU. � � lj qpo+ "'r:'> . se~ <~ d . i- t!ll"~E; d'~h. o" fn~+ s ; 4- hl f n "'I
oc,�r IC � .. � r:!AS , fJO � 1806 - 13 ... ir"' wl+h1 te.- yta~.::rs c f't. '1' +-h di.s- eovery (} r� t h (1) fnls tt-y, (2) f r ud, {3) Z")mts s 1,-:-r . u.r &+ h .,d +-h;.~ *' - +h..l law tf � Old b~ if'1.., erpre+e ., )- me.-. n ep&.rs ... +io~ :">f t:bc ,.h.rGo diffcal''E:I" t si ��utlf-io,..s of-fttlse r ttur , rr u-.c. 1 ,.t ro+a n with to 1?'1 +,~""+- ~0 G Vat~ +!J.:~t, '~'~ C f-ilUl"'t' file a rc:... u.r" ia s+re ... gt � ~"'Cd i mmeasurably by 1- he last; port t o '"' .:;1' *'he pr ...vi.s1ll" which Sfi.i gr g t-es +-ht: :�d. tu~~ io"'S� l,..+o +!.l"f;C 11f f'l" .., 1M3S'- S ,..~H!"Iely ' - .r�f..,lst+yu, ""'r uc., , tn�� J=.- 1ssio:r-" . "!"t bt. +;h..::, r~ i~; .:~ d1.f~. t{P''ce � ltai�-w-~,..�"f~l~ r +-u "'" ~;~ � vrr 1Ut.itJ l� .," ro... ur i'tu ea not e '.,.a .... :i�~d.. ~�.h ilt: the Pirs t- trteral.y :h - pl ElS d,; tri n~to ...� fr� m +-h .. ...ru+cf", whe+h r ;l..htt.~r -+>ioh al oJ.~ "'o t- t th � e c -' '"''i 1mpl1e $ i~+ e"+i "nl ~ec- 1+ ful ~+ry w1+h 1~~ e~+ +-o ~ vadG ,. 1 t-~x s du � 11 .Fr "'Aly , t f :r a u. dul ~:: ~"~f. l y, :~ 3 4 4
.... llr .. ,. pet~a ott . ~ lire ut1ule t--. 0 ~ '"ax r tur~ ... ~-o_ ,. �, d ... � It is belie ed, wi'. t:h0ut t~+ "'*' " "' 'rl:� r rroi" +o urals or ~h r f'llf' . t t a+ +h l w ii'T+ ~ds . n l't.: �I o""lY ~o cas .s 11'\>velv.... 1'"'' fl' utlule'~"~"' r +-tu���ui, o+hor'wi s , "'' ,..fo 331 . t-l"o 1 1""' � or .. ~~t: f':tw -y � r~r s::.t ip.. lv . et'1od ~\ t ry. +n d~ ~h thl iv �Y. r 't' per to p v1 � 1. ... ..... +i "' ri 1e s ef'e:r, to f�.ls Ol' ' +r . _.., 331 ll'"}~ lli eCll' 0 'f� t~.:tr�~s to �?h!cl� t, ar� ,, c~r 1od prov1d Dpl ic ble.. �;o quttt O.VEit'"''- $0 as t1r
~; . fll/"'o ,l. . .� � 18� 6 - 15 - 0 d or +~ il"l ~h 1~ ,.'l"!,.. r. . ir ( " +a ri. .1o"~s, v r, h ....... \lhl p ricd r p 1� r 1 f- .. _y r1r. 1 1 d+ d "!+ 0 v !"' t pr +: f- l +o 1 rt p+ 1"" r. .. ct. to~ ch by d1 ........ hr u-h+c bo t +' 11 ~ 0 1 lud ... ro th + ,,., 0 q u 0 ~ 1 1f h) . . 1 ' . ric ,.. ... s + + x., 1- .' 1. i.+ ... 1"' 9) s ... 11 !"1 . +! . 1 -~ 1"\' + .... 11 p1� 1o r 11 +1 i X f.!!"!t ~h �I s, "'i � !� 3 4 6
1' �I o ! O � ... no. 1 :� ~ 6 c �;� � �.. c AoE - 16 ... 0s }. I'! t: he A.z l"' a s +o whic t he f ive- y cr p - I'!c d pl' :) 1 ~et1 1" "~- c+ 0 .... 331 of +- h ;l Vti "'U, G d~ s prop'lflrly tfr plic ble . ""}� i,s i s e "' t i:r�ely di ffer ""~ 'bl " f i. v - Y El r" v" 31 of ... h . n .. v ~u . + 0 ... ' di s. tl �1s e s . e...,+ � ho v � r 1 t ma (~ � rt< g~ rot l"lr' +- .1e ch< r ti;e o f 'P t-1- t-1:>n e r~ th� >t + e ... e r i s ,, ' ...Ve!:l .. i g��"-io" o rried out ,.. 347
'"': !':~ IO � ... c .. �} � J\~ �' . 0 � 1806 - 17 .. t rm.ret:r bo""'d ror ~155 , (i C-') ,.ilti.id by ptd�i+� <~,..~u�s a. io ber by ca~ e ll ,..,.o pr;)ftOU~"~eemfH"~+ as to cos+s. A~ ocia+ Jtt~i - ~smon .; Avorc �d d d ~ot + ak~ pbr+. ,. 348
More in CTA Decisions
- COCA -COLA BOTTLERS PHILIPPINES, INC., v. COMMISSIONER OF INTERNAL REVENUE (consolidated with CTA Case No. 8028)(CTA Case No. 7986)
- STEELASIA MANUFACTURING CORPORATION v. COMMISSIONER OF INTERNAL REVENUE(CTA Case No. 6678)
- CTA Case No. 2134 (Decision)(CTA Case No. 2134)
- RAEKEN MARKETING CO., INC. v. COMMISSIONER OF INTERNAL REVENUE, HON. KIM S. JACINTO-HENARES(CTA Case No. 8759)
- CAGAYAN ELECTRIC POWER LIGHT COMPANY, INC. v. COMMISSIONER OF INTERNAL REVENUE(CTA Case No. 5883)
- CTA Case No. 5930 (Decision)(CTA Case No. 5930)
- SHANG PROPERTY DEVELOPERS, INC., v. COMMISSIONER OF INTERNAL REVENUE(CTA Case No. 9745)
- SMART COMMUNICATIONS, INC. v. THE MUNICIPALITY OF JONES, ISABELA, Rep. by the Hon. Municipal Mayor Leticia T. Sebastian and Municipal Treasurer Abelardo Salvador(CTA Case No. EB 1671)
Want an analysis of this document?
Ask ASG Legal AI to summarize it, compare it with other rulings, or explain how it applies to your situation — it researches from this same library.