People of the Philippines vs. Felonila Z. Caluag, et al.

AMENDED DECISION

UY, J.:

For resolution is accused's "MOTION

FOR

RECONSIDERATION" filed on September 20, 2018,¹ with plaintiff's "COMMENT and OPPOSITION (To the Accused's Motion for Reconsideration dated September 20, 2018)" filed on November 5, 2018.² In the said Motion, accused prays for the reconsideration of the judgment with regard to her civil liability, in the Court's Decision dated September 5, 2018, the dispositive portion of which reads: "WHEREFORE, in light of the foregoing, accused Felonila Z. Caluag is hereby ACQUITTED in CTA Crim. Case Nos. 0-345, 0-346, 0-347 And 0-348 for failure of the prosecution to prove her guilt beyond reasonable doubt.

Accused Felonila Z. Caluag, however, is ORDERED TO PAY the total amount of Four Hundred Eleven Million

Seven Hundred Two Thousand Five Hundred Pesos and

Sixty Three Centavos (P411, 702,500.63) for taxable years 2006 to 2009, inclusive of the 25% penalty imposed under Section 248 (A) (1) of the NIRC of 1997, as amended, computed as follows:

Taxable

BASIC INCOME

Date

Year

TAX DUE

50% Penalty

TOTAL

Prescribed for

Payment

2006 P91 ,684,586.91 P22,921 , 146.73 P114,605,733.64 April 15, 2007 2007 67,258,926.27 16,814,731.57 84,073,657.84 April 15, 2008 2008 110,842,120.31 27,710,530.08 138,552,650.39 April 15, 2009 2009 59,576,367.01 14,894,091 .75 74,470,458.76 April 15, 2010

TOTAL

P329,362,000.50 P82,340,500.13 P411 ,702,500.63 In addition, accused

Felonila

Z.

Caluag

is

ORDERED

TO

PAY the

following deficiency and delinquency interest, computed in accordance with the provisions of Section 249 of the NIRC of 1997, in its original text and as amended by RA No. 10963 (TRAIN law), viz.:

(a) Deficiency interest at the rate of twenty percent (20%) per annum on the basic deficiency income tax from the date prescribed for payment (as above identified) until December 31, 2017; (b) Delinquency interest at the rate of 20% per annum on the total amount of Four Hundred Eleven

Million Seven Hundred Two Thousand Five Hundred

Pesos and Sixty Three Centavos (P411, 702,500.63), and on the 20% deficiency interest which have accrued as stated in (a) hereof, computed from the date prescribed for payment (as above identified) until December 31, 2017; and

(c) Delinquency interest at the rate of 12% on the total unpaid amount [basic taxes, surcharges, and interests computed on (a) and (b) above] from January 1, 2018, until the same is fully paid.

THE COURT'S RULING

Accused's Motion for Reconsideration lacks merit. After a careful examination and consideration of the accused's Motion for Reconsideration, it is noted that the arguments raised therein are mere reiterations of matters which have already been considered, weighed and resolved in the assailed Decision. Thus, We shall not belabor, in this Resolution, to repeat the disquisitions made therein. However, this Court resolves to modify the imposition of deficiency and delinquency interests in accordance with the recently promulgated Revenue Regulation (RR) No. 21 -2018, implementing Section 249 of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963.

WHEREFORE, premises considered, the instant Motion for Reconsideration is hereby DENIED for lack of merit. Nevertheless, in view of the recently promulgated RR No. 21-2018, implementing Section 249 of the NIRC of 1997, as amended by RA No. 10963, the dispositive portion of this Court's Decision dated September 5, 2018 is hereby MODIFIED to read as· follows: "WHEREFORE, in light of the foregoing, accused Felonila Z. Caluag is hereby ACQUITTED in CTA Crim. Case Nos. 0-345, 0-346, 0-347 And 0-348 for failure of the prosecution to prove her guilt beyond reasonable doubt.

Accordingly, Accused Felonila Z. Caluag, is hereby ORDERED TO PAY the total amount of One Billion Five

Hundred Seventeen Million Four Hundred Twenty-

Seven Thousand Seven Hundred Eighty-Five Pesos

and Fifty-Three Centavos (P1,517,427,785.53), for ~

CTA Crim. Case Nos. 0-345, 0-346, O-347 & O-348 taxable years 2006 to 2009, inclusive of the 25% surcharge, and 20% deficiency interest and delinquency interest, respectively imposed under Sections 248(A), and 249(B) and (C), of the NIRC of 1997, as amended RA No. 10963, computed until December 31, 2017, as follows:

Taxable Year Total

| 2006 | 2007 2008 | 2000 P91,684,586.91 | 67,258,926.27 | 110,842,120.31 | #59,576,367.01 | 1329,362,000.50 25% Surcharge 22.921,146.73 | 16,814,731.57 | _27.70,530.08 | _ 14,894,091.75 82.340,500.13 Sub-Total 114,605,733.64 | 84,073,657.84 | 138,552,650.39 | 74,470,458.76 | __411,702,500.63 9, 2015 (91,684,586.91 x 20% x 2826/365 April 16, 2008 to January 9, 2015 (67,258,926.27 x 20% x2460/365 April 16, 2009 to January 9, 2015 (110,842,120.31 x 20% x 141,972,954.85 141,972,954.85

Interest

ranictne Pf 2095/365 April 16, 2010 to January 9, 2015 (59,576,367.01 x 20% x 56,475,131.47 1730/365 Total Amount Due, January 9, 2015 256,578,688.49 | ©174,735,005.03 | 265,793,330.96 | 130,945,590.23 | 828,052,614.71 127,240,680.58 127.240,680.58 56,475,131.47

Add: 20% Deficiency

Interest - From January

10, 2015 to December 31, (91,684,586.91 x 20% x 1087/365 (67,258,926.27 x 20% x 1087/365 ee 40,060,522.11 40,060,522.11 (110,842,120.31 x 20% x 1087/365 (59,576,367.01 x 20% x 1087/365

Add: 20% Delinquency

Interest - From January

10, 2015 to December 31, 2017 (1,087 Days Ela er 1087/365 152,822,484.60 gorsouias| 66,019,388.92 35,484,663.53 35,484,663.53 (174,735,005.03 x 20% x 1087/365 104,075,041.35 158,310,877.13 oo 152,822,484.60 (130,945,590.23 x 20% x 77,993,346.07 1087/365 77,993,346.07 0, Nie inlay ve 464,010,020.20 | 318,870,568.49 | 490,123,597.01 | ®244,423,599.83 | #1,517,427,785.53

In addition, accused

Felonila

Z.

Caluag

is ORDERED TO PAY the delinquency interest at the rate of twelve percent (12°/o), on the total unpaid amount as of January 9, 2015 in the amount of P828,052,614.71, as determined above, computed from January 1, 2018 until full payment thereof pursuant to Section 249(C) of the NIRC of 1997, as amended by RA No. 10963, and as implemented by RR No. 21-2018.

WE CONCUR:

(With Concurring anc}J1issenting Opinion) ROMAN G. DEL ROSARIO

Presiding Justice

• ER~P.UY

Associate Justice

~N.M~~-b~ CIELITO N. MINDARO-GRULLA

Associate Justice

CERTIFICATION

Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court.

Presiding Justice

REPUBLIC OF THE PHILIPPINES

Court of Tax Appeals

QUEZON CITY

SPECIAL FIRST DIVISION

PEOPLE OF THE PHILIPPINES, Plaintiff, -versus- FELONILA Z. CALUAG, 438 Saluysoy, Meycauayan, Bulacan, or 320 Violeta Street,

Baranggay

Saluysoy, Meycauayan, Bulacan, CT A Crim. Case Nos. 0-345, 0- 346, 0-34 7, and 0-348 For: Violation of Section 255, paragraph 1, of the Tax Reform Act of 1997, as amended

Members:

DEL ROSARIO, P.J., Chairperson, UY, and MINDARO-GRULLA, JJ.

Promulgated:

X------

Accused

---------------------------------------~-------------------------

~~-~~---------X

CONCURRING AND DISSENTING 0

DEL ROSARIO, P.J.:

I reiterate my Concurring and Dissenting Opinion on the Decision dated September 5, 2018, albeit with MODIFICATION as to the computation of deficiency and delinquency interests which should be computed pursuant to Revenue Regulations (RR) No. 21-2018 dated September 14, 2018. 1 Thus, I VOTE to:

1. DENY the Motion for Reconsideration filed by accused for lack of merit; and,

2. ORDER accused Felonila Z. Caluag TO PAY the total amount of One Billion Seven Hundred Eighteen Million()~"? 1 Implementing Section 249 (Interest) of the National Internal Revenue Cage of 1997, as amended by Section 75 of Republic Act No. 10963.

CONCURRING AND DISSENTING OPINION

Six Hundred Twenty-Eight Thousand Two Hundred

Sixteen

Pesos

and

Eighteen

Centavos

(t-1, 718,628,216.18), for taxable years 2006 to 2009, inclusive of the 50% surcharge, and 20% deficiency interest and delinquency interest, respectively imposed under Sections 248(8), and 249(8) and (C), of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963, computed until December 31, 2017, as follows:

Taxable Year

2006 2007 2008 2009

Total

Basic Deficiency Tax

p 91,684,586.91 67,258,926.27 110,842,120.31 59,576,367.01 329,362,000.50

Add: 50% Surcharge

45,842,293.46 33,629,463.14 55,421,060.16 29,788,183.51 164,681,000.25 Deficiency Interest from 4/16/2007 to 01/09/2015 (tt91,684,586.91 x 20% x 2,826/365 days) 141,972,954.85 141,972,954.85 Deficiency Interest from 4/16/2008 to 01/09/2015 (tt67,258,926.27 x 20% x 2,460/365 days) 90,661,347.19 90,661,347.19 Deficiency Interest from 4/16/2009 to 01/09/2015 (P110,842, 120.31 X 20% X 2,095/365 days) 127,240,680.58 127,240,680.58 Deficiency Interest from 4/16/2010 to 01/09/2015 ~59,576,367.01 x 20% x 1,730/365 days) 56,475,131.47 56,475,131.47 Total Amount Due, January 9, 2015 p 279,499,835.22 191,549,736.60 293,503,861.04 145,839,681.98 910,393,114.84

Deficiency Interest

From 111012015 to 12/31/2017

(P91,684,586.91 x 20% for 1,087/365 days) p 54,608,847.11 54,608,847.11 (P67,258,926.27 x 20% for 1,087/365 days) 40,060,522.11 40,060,522.11 (P110,842, 120.31 x 20% for 1,087/365 days) 66,019,388.92 66,019,388.92 (P59,576,367.01 x 20% for 1,087/365 days) 35,484' 663.53 35,484,663.53

Delinquency Interest

From 1/10/2015 to 12/31/2017

(tt279,499,835.22 x 20% x 1,087/3.65 days) ,. 223,753,018.77 223,753,018.77 (tt191,549,736.60x 20% x 1,087/365days) 153,344,748.04 153,344,748.04 (P293,503,861.04 X 20% X 1,087/365 days) 234,963,912.87 234,963,912.87 (P145,839,681.98 X 20% X 1,087/365 days) 86,864,511.95 86,864,511.95 Total Amount Due, December 31, 2017 p 557,861,701.10 384,955,006.75 594,487,162.82 268,188,857.46 1,718,628,216.18

3. ORDER accused

Felonila

Z.

Caluag

TO

PAY the

delinquency interest at the rate of twelve percent (12°/o) on the total unpaid amount as of January 9, 2015 in the amount of t-910,393, 114.84 as determined above, computed from January 1, 2018 until full payment thereof pursuant to Section 249(C) of the NIRC of 1997, as amended by RA No. 10963, and as implemented by RR No. 21-2018.

Presiding Justice

CERTIFIED IRUE COPY