Republic of the Philippines Yaw Court of Tax Appeais Mies Dr K Severina Del Casal vs. The Collector of Internal Revenue

DECISION

This is an appeal from the decision of the Collector (now Commissioner) of Internal Revenue assessing against and demanding from petitioner deficiency income taxes for the years 1948 and

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1949, in the total amount of #55,577.25, inclu- sive of surcharges, interest, and compromise pe-~ nalties for failure to file returms and for late payment of the tax.

Petitioner, on July 31, 1948, purchased a parcel of land, together with improvements there- on which consist of four-story duplex apartments known as the "Commodore Apartnuents", for the sum of #180,000. 00.

Upon investigation by respondent's agents, it was discovered that petitioner did not file income tax returns from 1945 to 195%. Im conse- quence thereof, respondent filed returns for her for the years 1948 and 1949. And on the basis of the consideration of #180,000.00, respondent , on ay

Decision

Manila CTA Case

Ho. 130. nad @ = May 20, 1954, assessed against and demanded from petitioner income taxes for the years 1948 and 1949 im the sumsof P46,563.64% and 91,723.27, res- pectively, or in the total sum of #48,286.91, in- clusive of 50% surcharges and administrative penal- ties for failure to file returns. (Exh. 3, p.13 BIR rec.)

Om June 24, 195%, petitioner disputed the assessment, requesting that her tax case be heard before the Conference Staff of the Bureau of In- ternal Revenue. (p. 1% BIR rec.)

After due hearing before the Conference Staff of petitioner's tax case, respondent,on April 18, 1955, assessed against and demanded from petitioner the total amount of #55,577.25, computed as follows:

1948 deficiency income tax due ....#%6,523.6% 1949 - = = = eoen Total emount due Te TTTVLTTE TT LY. 9 3 54 surcharge Ceoeeesereeneoeogeeoeeesse 2,410.31 1% monthly interest from June 30, 195% to April 30, 1955 ecccoccse 820.63 Compromise for failure te file returns for 1948 and 1949 at £40.00 eeeaeeeeeoeeoevpeaneoeveaoecanaeaoeeead 80.00 Compromise for late payment of the tax @eseaesseeaevegvpeaeeonseecoeased TOTAL AMOUNT DUE TARR RR RRR RERRER RA ESS | The total alleged deficiency income taxes due in the amounts of ?46,523.64 and #1,683.27 shbuld be £48,206.91, instead of P4+8,206.31 erroneously in- dicated in the foregoing assessment.

Decision

Manila CTA Case

No. 130. -3- From this final assessment, petitioner ap- pealed to this Court, alleging, in her petition for review, that respondent's right to collect the tax in question by summary method has already pres- cribed in accordance with Section 51(d) of the Na- tional Internal Revenue Code; and that the assess- ment is without basis in law and in fact as it was solely based on the amount of #180,000.00 which is not imcome earned by her.

Neither petitioner nor her counsel appeared during the scheduled hearing on August 27, 1962. Whereupon, on motion of counsel for respondent, the Court ordered her to proceed with the presen- tation of her evidence. Respondent's counsel pre- sented only documentary evidence, after which the case was submitted for decision. The evidence of petitioner had established sufficiently and ade- quately the facts as heretofore stated.

On the basis of the pleadings and the facts established during the hearing, the issues are:

1. Whether or not petitioner is liable for deficiency income taxes in the total @ount of #55,577.25, inclusive of surcharges, interest, and compromise penalties for fail- ure to tlle returns and for late payment of the tax.

2. Whether or not the collection of the taxes have prescribed.

Petitioner failed to appear and present evid- ence or proof in support of her allegations in her 366

SOF"

• Deci io ~1 il c C se

o. 130. pe ition for revi - 4 - • nc , co orm~bly to the doctri e of the pr s ption in f vor of the cor- r ctn ss o:f t s ss nt (Int r-provincial Auto- bus Co., Inc. vs Coll. of Int. R v., G •• No. J n. 31, 1956; Coll ctor v • hol Land Tr n port - tion Co., G.R.

os. L-13099 13462, pr11 29, 1960), w r constr in to u t 1 th deficiency i co t X s ss· ent g inst titlon r 1 c1udin p 1- ti s, xc pt with r s ct to th 11 g co promise , respon nt havi no uthor1ty to po e co pro 1 p n lti s without h conse t of the t - p yer co c rn d.

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F lEG ~~G , the d eision or th Co11 ctor (now Commissioner) of I.ter 1 ue .~h r by ffirm d , xcept with r p ct to th compro is alti s. It p rin that pct1- tion r 1s lr ady d d, h r st ve, or h r succ s- ors in i.v.t r st, 1 hereby order d to pay to th o issioner o Inter 1 R v nu , ithin 30 d ys fro th date thi d cisio b co es fi 1, th o t of 8 ,206. 91 y rs 19 8 defici ncy i com t 1949, p u 5% urch r or the o t hly 1nt r st fro un 30, 195 1 til th t re p id, subject to th 1 it tions pres- rib d in ec ion 51 of the tic 1 Internal

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u Cod , me d d.

With costs against petitioner.

367 367 .

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Decision

Manila CTA

Case No. 130. - 5- 80 ORDERED, Manila, September 26, 1962.

we 10 NAB

Presiding Judge

WE CONCUR:

ROMAN M. UMALI

Associate Judge

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