People of the Philippines vs. Rebecca S. Tiotangco 153 Mabini St., et al.

REPUBLIC OF THE PHILIPPINES

COURT OF TAX APPEALS

Quezon City Second Division PEOPLE OF THE PHILIPPINES, Plaintiff, -versus- REBECCA S. TIOTANGCO Entrepreneur of Anilos Trading and Consttuction, .r\ccused.

CTA CRIM CASE NOS. 0-599, 0-603 & 0-604 For: Violation of Section 255 of the NIRC of 1997, as amended J\!Iembers:

RINGPIS-LIBAN, Chairperson MODESTO-SAN PEDRO, and FERRER-FLORES,JJ.

Promulgated:

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

DECISION ON THE CIVIL ASPEC

RINGPIS-LIBAN,J.:

Nature of the Case This is a remanded case for the determination of accused Rebecca S. Tiotangco's civil liabilities for taxes and penalties, pursuant to Supreme Court Resolution dated December 04, 2023 rendered in G.R. No. 263987. Background To recall, plaintiff filed four (4) Informations against accused, the sole proprietor of L\nilos Trading and Construction, for violations of Section 255 of the National Internal Revenue Code ("NIRC") of 1997, as amended, for her alleged failure to supply correct and accurate information in her quarterly value- added tax ("VAT") Returns for the third and fourth quarters of taxable year ("TY") 2008 and first and second quarters of TY 201 y

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 2 of 19 2 The Informations against the accused read as follows: CTA Crim. Case No. 0-5991 "That on or about January 25,2009 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of Anilos Trading and Construction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the V1\ T return of the said business for the 4th quarter of 2008 filed with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Twenty Four Million Eight Hundred Fifty Four Thousand and Four Pesos and 80/100 ([Php]24,854,004.80) subject to [twelve percent (12%)] VAT resulting in tax deficiency of Two 1\!Iillion Nine Hundred Eighty Two Thousand Four Hundred Eighty Pesos and 58/100 ([Php ]2,982,480.58),exclusive of surcharges and interests. CONTRARY TO LAW."

CTA Crim. Case No. 0-60f~ "That on or about April 25, 2010 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of Anilos Trading and Consttuction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the VAT return of the said business tax for the 1st quarter of 2010 filed with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Thirteen Million Two Hundred Sixteen Thousand Eight Hundred Eighty Three Pesos and 33/100 ([Php]13,216,883.33) subject to [twelve percent (12%)] VAT resulting in tax deficiency of One l'vlillion Five Hundred Eighty Six Thousand and Twenty Six Pesos ([Php]1,586,026.00),exclusive of surcharges and interests. CONTR£\.RYTO LAW."

( Docket (CTA Crim Case No. 0-599), Information dated October 15, 2015, pp. 6-7. Docket (CTA Crim Case No. 0-601), Information dated October 15, 2015, pp. 6-7.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 3 of 19 4 CTA Crim. Case No. 0-60Y "That on or about October 25, 2008 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of .Anilos Trading and Construction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the V .AT return of the said business for the 3rd quarter of 2008 flied with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Thirty Million Thirty Nine Thousand One Hundred Sixty Five Pesos and 7/100 ([Php]30,039,165.07) subject to [twelve percent (12%)] VAT resulting in tax deficiency of Three l\!Iillion Six Hundred Four Thousand Six Hundred Ninety Nine Pesos and 81/100 ([Php ]3,604,699.81 ),exclusive of surcharges and interests. CONTRARY TO LAW."

CT.A Crim. Case No. 0-6044 (Amended Information) "That on or about July 25, 2010 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of .Anilos Trading and Construction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the VAT return of the said business tax for the 2nd quarter of 2010 with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Nine Million Nine Hundred Seventy One Thousand Twelve Pesos and 97/100 ([Php]9,971,012.97) subject to [twelve percent (12%)] V .AT resulting in tax deficiency of One Million One Hundred Ninety Six Thousand Five Hundred Twenty One Pesos and 56/100 ([Php]1,196,521.56),exclusive of surcharges and interests. CONTRARYTOLAW~ Docket (CTA Crim Case No. 0-603), Information dated October 15, 2015, pp. 6-7. Docket (CTA Crim Case No. 0-604), Information dated October 15, 2015, pp. 6-7.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 4 of 19 On November 13, 2019, the First Division of the Court of Tax Appeals ("CTA") promulgated a Decision5: 1) _Acquitting accused Rebecca S. Tiotangco in CTA Criminal Case No. 0-601, for failure of the prosecution to prove her guilt beyond reasonable doubt; and 2) Finding accused guilty beyond reasonable doubt on three (3) counts of violation of Section 255 of the National Internal Revenue Code ("NIRC") of 1997, as amended. She was sentenced for each of the offense charged in CTA Criminal Case Nos. 0-599, 0-603, and 0-604, to suffer an indeterminate penalty of one (1) year, as minimum, to two

(2) years as maximum term of imprisonment. 1\ccused was ordered to pay a fine of Php10,000.00, with subsidiary imprisonment in case she has no property with which to meet such fine.

The CTt\ First Division ruled however that the plaintiff failed to present any evidence that an assessment (i.e., final determination) has been issued by the Bureau of Internal Revenue ("BIR") against accused, and that the presentation of the computation of the unreported income cannot be used as basis for the determination of her civil liabilities. As such, no proper determination of the accused's civil liabilities can be made. Aggrieved, plaintiff filed a ":Lviotion for Partial Reconsideration"6 of the Decision insofar as it denied the recovery of the civil aspects of CTA Crim. Case Nos. 0-599, 0-601, 0-603 and 0-604. Plaintiff attached photocopies of a Preliminary _.r\ssessment Notice7 ("PAN") dated June 18, 2018 and a Formal Letter of Demand 8 ("FLD") with Details of Discrepancies and Audit Result/ Assessment Notice (AN) all dated July 13, 2018. Plaintiffs prayer for the accused to pay deficiency VAT for the third and fourth quarters ofTY 2008 and first and second quarters ofTY 2010 was denied in a Resolution9 dated June 1 5, 2020(1 5 6 7 8 9 Docket (CTA Crim Case No. 0-599), pp. 2124-2150; Penned by Associate Justice Esperanza R. Fabon-Victorino, concurred in by Associate Justice Catherine T. Manahan, with Dissenting Opinion of Presiding Justice Roman G. Del Rosario. !d., pp. 2155-2201.

I d., pp. 2165-2167.

Id., pp. 2168-2176.

Id., pp. 2227-2234.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 5 of 19 Proceedings in the CoNrt ofT ax Appeals En Bane Consequently, plaintiff as petitioner, elevated the civil aspects of the prior consolidated cases and filed with the CTA En Bane a "Petition for Review"10 on July 14, 2020. The case was docketed as CTA EB Crim. Case No. 080. In the Resolution11 dated September 18, 2020, the CTA En Bane ordered accused as respondent to file her comment, not a motion to dismiss, within ten (1 0) days from receipt thereof. Accused as respondent complied and posted her "Comment (to the Petition for Review under Rule 8, Sec.3 (b) of the Revised Rules of the CTA)"12 on October 29, 2020. The case was tl1en submitted for decision in a Resolution 13 dated January 06, 2021.

On February 03, 2022, the CTA En Bane rendered its Decision, 14 the dispositive portion of which reads: "WHEREFORE, with the foregoing, the instant Petition for Review flied by petitioner People of the Philippines on July 2020 is hereby DENIED for lack of merit. Accordingly, the First Division's Decision and Resolution dated 13 November 2019 and 15 June 2020, respectively, in CTA Crim. Case Nos. 0-599,0-601, 0-603 and 0-604, all entitled People of the Philippines v. Rebecca S. Tiotangco, Entrepreneur of Anilos Trading and Construction, are hereby AFFIRMED.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 6 of 19 the amounts stated therein do not coincide with the computations provided in the Joint Complaint-Affidavit. Plaintiff then flied a "Motion for Reconsideration (of the Decision dated February 3, 2022) 15 on March 04, 2022, to which accused flied its "Comment to the Motion for Reconsideration (of the Decision dated February 3, 2022)"16 on April 25, 2022.

In the Resolution17 dated October 19, 2022, the CTA En Bane denied plaintiff's motion for reconsideration, the dispositive portion of which states: "WHEREFORE, pet1t10ner People of the Philippines' lVIotion for Reconsideration flied on 04 Niarch 2022 is DENIED for lack of merit.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 7 of 19

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 8 of 19 quarter ofTY 2010. The question is whether accused is liable for deficiency VAT for the said periods. After a second hard look, the Court finds in the affirmative. The documentary evidence presented by plaintiff to prove accused's civil liability for VAT are as follows: 1) Joint Complaint-Affidavit18 of Revenue Officer ("RO") May Q. Jaminola (May F. Quiambao, maiden name) and RO Jose Maria F. Reyes dated September 11, 2024, containing the computation19 of accused's alleged deficiency V~AT for TY 2008 and 2010;

2) Letter20 dated September 24, 2013, addressed to the then Governor ofPalawan Province, Hon. Jose C. Alvarez, where the BIR requested for a certification pertaining to the total payments (annual and quarterly basis) covering the period 2008 to 2010, made or released by the Provincial Government ofPalawan to its contractors, one of which was Anilos Trading and Construction; 3) Certification 21 dated December 05, 2013 issued by the Provincial Accountant of the Government of Palawan that it paid Anilos Trading and Construction a total amount of Php120,145,403.48 for TYs 2008 to 2010, with attached schedule22 of payments per quarter; 4) Journal Entry Vouchers23 of the Provincial Government of Palawan, which served as the basis for the schedule of payments attached to the Certification dated December 05, 2013;f 18 Docket (CTA Crim Case No. 0-599), Exhibit "P-1", pp. 508-518. 19 Id., Exhibits "P-1-c" and "P-1-d", pp. 515-516. 20 I d., Exhibit "P-7", p. 587. 21 Id., Exhibit "P-8", p. 588. 22 Id., Exhibit "P-8-1", pp. 589-591. 23 Id., Exhibits "P-29" to "P-29-uuuu", p. 1781-1830 and 1844-1893.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 9 of 19 S) Accused's BIR-Returns Processing System Print-Out of Quarterly Value Added Tax (BIR Form No. 2SSO-Q) for the third24 and fourth25 quarter of 2008; and 6) Accused's Quarterly Value Added Tax Return (BIR Form No. 2SSO-Q) 26 for the second quarter of 2010. Plaintiff also presented the following witnesses in the course of the trial in the CTA First Division: 1) RO J aminola27 - who testified that she and her Supervisor RO Reyes investigated accused's tax liabilities for taxable years 2008 to 2010, sometime in September 2013; 2) RO Reyes 28 - who testified that he and RO J aminola compared the gross income declared by accused in her 2008 and 2010 Quarterly VAT Returns as against the income paid to her for the same years as certified by the Provincial Government of Palawan, concluding that accused deliberately failed to supply correct and accurate information in her Quarterly VAT Returns by substantially underdeclaring her gross income for said taxable years; 3) Edna R. l\!Ialigro 29 - who testified that she prepared the schedule of payments attached to the Certification dated December OS, 2013 issued by the Provincial Accountant of the Province of Palawan, which was based on their Journal Evtry Vouchers from the Electronic-New Government Accounting System of their office; 4) Arlene N. Sabellina30 - who testified that she was the one who issued the Certification dated December OS, 2013 summarizing the payments made by the Government of ;/ 24 Id, Exhibit "P-13", pp. 620-621. 25 Id, Exhibit "P-14", pp. 622-623. 26 Id, Exhibit "P-16", p. 626. 27 Id, Judicial-Affidavit (of May Q. Jaminola) (Exhibit "P-22") and Minutes of Hearing dated February 21, 2018, pp. 983-1002 and 1717-1719. 28 Id, Judicial-Affidavit (of Jose Maria F. Reyes) (Exhibit "P-26") and Order dated April 04, 2018, pp. 1005-1024 and 1764-1766. 29 Id, Judicial-Affidavit (of Edna R. Maligro) (Exhibit "P-24") and Minutes of Hearing dated March 21, 2018, pp. 1027-1037 and 1744-1746. 30 Id, Judicial-Affidavit (of Arlene N. Sabellina) (Exhibit "P-25") and Minutes of Hearing dated March 21, 2018, pp. 1149-1158 and 1744-1746.

Date 25- Jul- 2008 25- Jul- 2008 e-

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 10 of 19 Palawan to Anilos Trading and Construction for TY s 2008 to 2010, which was based on their record of accounting entries for each transaction made by the government, including the disbursement vouchers, check number, official receipt number, and other supporting documents; and 5) Luzviminda S. I\costa 31 - who testified that she issued a certified true copy of accused's Quarterly V1\ T Returns for the second quarter ofTY 2010. Meanwhile, it was stipulated during the Pre-Trial Conference 32 that accused is (a) a registered taxpayer of Revenue District Office No. 36, Puerto Princesa City, Palawan assigned with Taxpayer Identification Number (TIN) 121-252-527-000, and (b) a sole proprietor, doing business under the trade name of Anilos Trading and Construction, a company engaged in the business of construction and sale of construction supplies. Based on the entirety of the evidence, the Court was able to infer two (2) key points.

First, accused received payments for its construction services from the Provincial Government of Palawan during the subject taxable periods, as shown below:

Payments Made to Anilos Trading and Construction by the Provincial Government of Palawan:33 Due to BIR 2% Expanded NGAs Journal Docket (Total 7% 5% Withholding JEV Entry Page Tax Withholding No.

Voucher No.

Description Amount Withheld) VAT /1.nilos Trading:

1st billing Solar Home JEV- Systems Dist Proj 2008- Batch I Phase II Bgy 07- Exhibit Taradungan/Mendoza 014500 P-29-c 1784 Roxas Php1,269,954.19 Php88,896.79 Php63,497.71 ]E\'- 2008- Anilos Trading:

1st 07- Exhibit billing Solar Home 014504 P-29-d 1785 ..

Systems Dist Proj 2,391,371.66 167,396.02 119,568.58 -·· 31 Id, Judicial-Affidavit (of Luzviminda S. Acosta) (Exhibit "P-27") and Order dated April 04, 2018, pp. 1753-1757 and 1764-1766. 32 Id., Pre-Trial Order dated February 07, 2018, par. II. A., nos. 3 and 4, p. 1637. 33 Id, Attached Schedule of Payments to the Certification dated December 05, 2013 (Exhibit "P- 8-1"), pp. 589-591.

Taxon contractors Php25,399.08 47,827.43 ,v'

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 11 of 19 Batch II Phase I Bey Itangil Dumaran Anilos Trading: 1st JEV- billing Solar Home 25- 2008- Systems Dist Proj Jul- 07- Exhibit Batch IT Phase I Bey 2008 | 014521 | P-29-e 1786 San Isidro Busuanga 2,452,842.56 171,698.98 122,642.13 49,056.85 | Anilos Trading: Full JEV- payment Solar Home 11- 2008- Systems Dist Proj Aug- | 08- Exhibit Batch II Phase I Bey 2008 | 014743 | P-29-£ 1787 Luac Culion 181,092.43 12,676.47 9,054.62 3,621.85 Anilos Trading: Full payment Solar Home Systems Dist Proj JEV- Batch II Phase I Bey 11- 2008- Banuang Aug- | 08- Exhibit Daan/Buenavista 2008 014747 | P-29-g 1788 Coron 360,077.34 25,205.41 18,003.87 7,201.55 Anilos Trading: Full JEV- payment Solar Home 11- 2008- Systems Dist Proj Aug- | 08- Exhibit Batch II Phase I Bey 2008 | 014749 | P-29-h 1789 San Isidro Busuanga 169,957.44 11,897.02 8,497.87 3,399.15 Anilos Trading: Full JEYV- payment Solar Home 2008- Systems Dist Proj 08- Exhibit Batch II Phase I Bey 014751 | P-29-1 1790 Galoc Cullion 179,896.64 12,592.76 8,994.83 3,597.93 Anilos Trading: Full JEV- payment Solar Home 2008- Systems Dist Proj 08- Exhibit Batch II Phase I Bey 1015005 P-29-j 1791 Itangil Dumaran 2,554,588.34 178,821.18 127,729.42 51,091.77 Anilos Trading: Full payment Solar Home JEV- Systems Dist Proj 2008- Batch I Phase II Bey 08- Exhibit Taradungan/Mendoza 015006 | P-29-k 1792 Roxas 1,530,385.81 107,127.01 76,519.29 30,607.72 | JEV- Anilos Trading: 1st 2008- billing Const School 08- Exhibit Bldg Package A-08-18 015183 | P-29-1 1793 Taytay 2,313,914.83 { 161,974.04 115,695.74 46,278.30 JEV- Anilos Trading: 1st 2008- billing Const School 08- Exhibit Bldg Package A-08-26 015185 | P-29-m 1794 Culion 1,452,508.50 |_____ 101,675.60 72,625.43 29,050.17 JEV- Anilos Trading: 1st 2008- billing Const Day Care 08- Exhibit Center Package N-08- 015188 | P-29-n 1795 05 Roxas/San Vicente 1,076,236.84 75,336.58 53,811.84 21,524.74 JEV- Anilos Trading: 1st 20- 2008- billing Const HE Bldg Aug- | 08- Exhibit Panacan Elem School 2008 | 015192 | P-29-0 1796 Narra 1,579,763.60 110,583.45 78,988.18 31,595.27 Anilos Trading: 1st JEV- billing Const School 20- 2008- Bldg 2Storey aAug- | 08- Exhibit 6Classroom Princess 2008 | 015196 | P-29-p_ 1797 Urduja Narra 4,791 ,654.48 335,415.81 239,582.72 95,833.09 | 4 22- "\ug- 2008 22- Aug- 2008 22- Aug- 2008 22- Aug- 2008 29- "\ug- 2008 29- Aug- 2008 30- Sep- 2008 30- Sep- 2008 30- Sep- 2008 30- Sep- 2008 30- Sep- 2008 7- Oct- 2008 7- Oct- 2008

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 12 of 19 A.nilos Trading:

1st JEY- billing Canst School 2008- Bldg 2Storey 08- Classroom Poblacion 015389 NA NA Narra JEV- Anilos Trading:

1st 2008- billing Canst School 08- Exhibit Bldg Package A-08-03 015395 P-29-:9_ 1798 Roxas JEY- Anilos Trading:

1st 2008- billing Canst School 08- Exhibit Bldg Package A-08-02 015412 P-29-r 1799 Roxas "\nilos Trading:

1st billing Canst School ]E\'- Bldg Package 5-08-07 2008- Bgy 08- Exhibit i\ I a tangule /Mara bon 015419 P-29-s 1800 Balabac "\nilos Trading:

1st billing Coast School JEV- Bldg Package N-08-07 2008- Bgy New 08- Exhibit Barbacan/N ew 015584 P-29-t 1801 Cuyo/San Isidro JEY- _\nilos Trading:

1st 2008- billing Const School 08- Exhibit Bldg Package A-08-01 015585 P-29-u 1802 Roxas JEV- "\nilos Trading:

1st 2008- billing Const HE Bldg 09- Exhibit San Jose Nat! High 016392 P-29-v 1803 School Roxas JEV- "\nilos Trading: 2nd 2008- billing Canst School 09- Exhibit Bidg Package A-08-03 016394 P-29-w 1804 Roxas JEV- "\nilos Trading: 2nd 2008- billing Canst School 09- Exhibit Bldg Package A-08-01 016403 P-29-x 1805 Roxas ]E\'- "\nilos Trading: 2nd 2008- billing Canst School 09- Exhibit Blog Package "\-08-02 016405 P-29-y 1806 Roxas Anilos Trading: Full JEV- payment 2008- Maint/Rehab Provl 09- Exhibit Rds Package N-08-05 016416 P-29-z 1807 El Nido Total for third quarter ofTY 2008 Anilos Trading: 2nd JEV- billing Canst School 2008- Bldg 2Storey 10- Exhibit 6Classroom Poblacion 018308 P-29-aa 1808 Narra ]E\'- Anilos Trading: 2nd 2008- billing Canst HE Bldg 10- Exhibit Panacan Elem School 018313 P-29-bb 1809 Narra --~ ------- 3,765,940.94 263,615.87 188,297.05 75,318.82 828,873.57 58,021.15 41,443.68 16,577.47 !

929,816.63 65,087.16 46,490.83 18,596.33 377,007.58 26,390.53 18,850.38 7,540.15 I 614,536.18 43,017.53 30,726.81 12,290.72 I I I 1,022,395.84 71,567.71 51,119.79 20,447.921 I 420,317.57 29,422.23 21,015.88 8,406.35 472,049.07 33,043.43 23,602.45 9,440.98 879,735.96 61,581.52 43,986.80 17,594.72 I 948,600.81 66,402.06 47,430.04 18,972.02 i i 2,130,709.76 149,149.68 106,535.49 42,614.20 Php34,694,228.57 Phpl, 734,711.43 Php2,972,323.17 Php208,062.62 Php148,616.16 Php_59,446.46 3!_1_,665. '!§__ 21,81~.58 L5,583.27 6,233.~1 -- - - ~ 7- Oct- 2008 7- Oct- 2008 7- Oct- 2008 8- Oct- 2008 10- Oct- 2008 10- Oct- 2008 16- Oct- 2008 29- Oct- 2008 29- Oct- 2008 14- Nov- 2008 2- Dec- 2008 4- Dec- 2008 4- Dec- 2008 4- Dec- 2008

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 13 of 19 Anilos Trading: 2nd jE\T- billing Const School 2008- Bldg 2Storey 10- Exhibit 6Classroom Princess 018316 P-29-cc 1810 Urduja Narra jE\7- Anilos Trading: 2nd 2008- billing Const School 10- Exhibit Bldg Package N -08-07 018320 P-29-dd 1811 Roxas JEV- Anilos Trading: 2nd 2008- billing Const Day Care 10- Exhibit Center Package N-08- 018413 P-29-ee 1812 05 Roxas/San Vicente JEY- Anilos Trading: 2nd 2008- billing Const School 10- Exhibit Bldg Package A-08-18 018512 P-29-ff 1813 Taytay Anilos Trading: 2nd billing Const School JEY- Bidg Package 5-08-07 2008- Bgy 10- Exhibit J\Ia tangule /Marabon 018557 P-29-gg 1814 Balabac jE\T- /\nilos Trading:

1st 2008- billing J\Iaint/Rehab 10- Exhibit Provi Rds Package N- 018614 P-29-hh 1815 08-01 Roxas JEY- "-\nilos Trading: Full 2008- payment Const HE 10- Exhibit Bldg Panacan Elem 018851 P-29-ii 1816 School Narra ~\nilos Trading: Full JEY- payment 2008- J\Iaint/Rehab Pro vi 10- Exhibit Rds Package N-08-01 018925 P-29-jj 1817 Roxas ~\nilos Trading: Full JEY- payment 2008- J\Iaint/Rehab Pro vi 10- Exhibit Rds Package S-08-02 018926 P-29-kk 1818 Narra JEV- "\nilos Trading:

1st 2008- billing .:\faint/Rehab 10- Exhibit Provi Rds Package S- 019144 P-29-ll 1819 08-01 Aborlan/Narra JEV- £\nilos Trading: 3rd 2008- Exhibit billing Const HE Bldg 10- P-29- San Jose Natl High 019595 mm 1820 School Roxas JEY- ~\nilos Trading:

1st 2008- billing Const School 10- Exhibit Bldg Package A-08-35 019930 P-29-nn 1821 Cuyo JEY- Anilos Trading:

1st 2008- billing Const School 10- Exhibit Bldg Package A-08-36 019934 P-29-oo 1822 "\gutaya "\nilos Trading: 3rd JEY- billing Const School 2008- Bldg 2Storey 10- Exhibit 6Classroom Princess 019941 P-29-pp 1823 Urduja Narra 1,64 7,131.23 115,299.19 82,356.56 32,942.62 135,601.88 9,492.13 6,780.09 2,712.04 1,345,296.06 94,170.72 67,264.80 26,905.92 1,851,131.87 129,579.23 92,556.59 37,022.64 565,511.37 39,585.80 28,275.57 11,310.23 I I I 1,659,571.00 116,169.97 82,978.55 33,191.42 210,158.79 14,711.12 10,507.94 4,203.181 ;

1,659,571.00 116,169.97 82,978.55 33,191.42 3,367,026.40 235,691.85 168,351.32 67,340.53 I 1,469,338.80 102,853.72 73,466.94 29,386.78 420,317.57 29,422.23 21,015.88 8,406.35 1,478,459.32 103,492.15 73,922.97 29,569.19 2,338,952.10 163,726.65 116,947.61 46,779.04 673,826.41 47,167.85 33,691.32 13,476.53 p 4- Dec- 2008 8- Dec- 2008 8- Dec- 2008 8- Dec- 2008 8- Dec- 2008 8- Dec- 2008 8- Dec- 2008 16- Dec- 2008 16- Dec- 2008 16- Dec- 2008 23- Dec- 2008 23- Dec- 2008 24- Dec- 2008 24- Dec- 2008

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 14 of 19 _TE\'- 1\nilos Trading: 2nd 2008- billing Canst HE Bldg 10- Exhibit San Jose Nat! High 019946 P-29-qq 1824 School Roxas Anilos Trading:

1st _TE\T- billing 2008- J\Iaint/improvement 10- Exhibit Junct J\Iainit Rd Brks 020016 P-29-rr 1825 Pt Anilos Trading: 3rd billing Canst School JEY- Bidg Package S-08-07 2008- Bgy 10- Exhibit J\Ia tangule /Mara bon 020018 P-29-ss 1826 Balabac Anillos Trading: Full _TE\T- payment 2008- i\Iaint/Improvement 10- Exhibit Junct i\Iainit Rd Brks 020021 P-29-tt 1827 Pt Anilos Trading: Full payment Canst School JEY- Bldg Package S-08-07 2008- Bgy 10- Exhibit l\ I a tangule /l\ Iara bon 020025 P-29-uu 1828 Balabac Anilos Trading:

1st JEV- billing 2008- l\Iaint/improvement 10- Exhibit Culandanum-Tarusan 020049 P-29-vv 1829 Rd Bataraza JEV- /1.11ilos Trading: Full 2008- payment Canst School 10- Exhibit Bldg Package .-\-08-18 020052 P-29-ww 1830 Ta,-tay ]E\T- Anilos Trading: 3rd 2008- billing Canst School 10- Exhibit Bldg Package N-08-07 020204 P-29-xx 1844 Roxas JEV- .\nilos Trading: 2nd 2008- billing Canst School 10- Exhibit Bldg Package "-\-08-26 020207 P-29-yv 1845 Cull on .\nillos Trading: Full jE\T- payment 2008- J\Iaint/lmprovemcnt 10- Exhibit Culandanum-Tarusan 020208 P-29-zz 1846 Rd Bataraza JEV- Anillos Trading: 2nd 2008- billing Canst School 10- Exhibit Bldg Fackage A-08-35 020356 P-29-aaa 1847 Cuyo JEV- .\nilos Trading: 3rd 2008- Exhibit billing Canst School 10- P-29- Bldg Package .-\-08-26 020380 bbb 1848 Cullan ]E\T- Anilos Trading: 4th 2008- billing Canst School 10- Exhibit Bidg Package N-08-07 020439 P-29-ccc 1849 Roxas Exhibit JEV- P-29- Anilos Trading: 3rd 2008- ddd 1850 billing Canst School 105,079.40 7,355.56 5,253.97 2,101.59 I I 850,190.00 59,513.30 42,509.50 17,003.80 I I I I I I 565,511.37 39,585.80 28,275.57 11,310.23 212,547.50 14,878.33 10,627.38 4,250.95 .

377,007.58 26,390.53 18,850.38 7,540.15 1,253,841.30 87,768.89 62,692.07 25,076.83 I I 462,782.97 32,394.81 23,139.15 9,255.66 548,177.81 38,372.45 27,408.89 10,963.56 2,178,616.48 152,503.15 108,930.82 43,572.33 I 302,758.70 21,193.11 15,137.94 6,055.17 438,692.79 30,708.50 21,934.64 8,773.86 729,584.37 51,070.91 36,479.22 I 14,591.69 I I 461,623.42 32,313.64 23,081.17 9,212.471 523,086.24 36,616.04 26,154.31 I 10,461.72 1 ?

19- Apr- 2010 22- Apr- 2010 15- Apr- 2010 20- "--\pr- 2010 22- "--\pr- 2010 29- .--\pr- 2010 29- Apr- 2010 5- "--\pr- 2010 4- i\Iay- 2010 4- i\Iay- 2010 4- i\Iay- 2010 13- i\Iay- 2010

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 15 of 19 10- Bidg Package "-\.-08-01 020444 Roxas Total for fourth quarter ofTY 2008 TOTAL forTY 2008 JEV- /ulilos Trading 3rd 2010- billing Const School 04- Exhibit Bldg Package "--\-08-02 002709 P-29-zzz 1872 Roxas JEV- Anilos Trading: Full 2010- Exhibit payment Const School 04- P-29- Bldg Package "--\-08-02 002712 aaaa 1873 Roxas :\nilos Trading: Full JE\'- payment 2010- Exhibit i\Iaint/Rehab Provl 04- P-29- Rds/Bridges Package 004703 bbbb 1874 S-10-02 Narra "-\nilos Trading: Full JEV- payment Const Solar 2010- Exhibit Home Systems Dist 04- P-29- Proj Batch III Phase 1 004957 ecce 1875 Bgy Biton Ta,·tay Anilos Trading: Full JEV- payment Const Solar 2010- Exhibit Home Systems Dist 04- P-29- Proj Batch III Phase 1 005233 dddd 1876 Bgy Isugod Quezon Anilos Trading:

1st billing Const Solar ]E\'- Home Systems Dist 2010- Exhibit Proj Batch III Phase 1 04- P-29- Bgy Culandanum 005582 eeec 1877 Aborlan "-\nilos Trading:

1st billing Const Solar _TE\T- Home Systems Dist 2010- Proj Batch III Phase 1 04- Exhibit Bgy Bagong Bay an 005584 P-29-ffff 1878 PPC "-\nilos Trading: 2nd ]E\'- billing i\Iaint/Rehab 2010- Exhibit Provl Rds/Bridges 04- P-29- Package N-10-04 005942 gggg 1879 Tavtay Anilos Trading: Full JEV- payment 2010- Exhibit i\Iaint/Rehab Provl 04- P-29- Rds/Bridges Package 005856 hhhh 1880 S-10-14 Narra _Anilos Trading: Full JEV- payment 2010- i\Iaint/Rehab Pro vi 04- Exhibit Rds/Bridges Package 005859 P-29-iiii 1881 S-10-16 Narra .--\nilos Trading:

1st )E\'- billing i\Iaint/Rehab 2010- Provl Rds/Bridges 04- Exhibit Package S-10-10 005863 P-29-jjjj 1882 "--\borlan Exhibit Anilos Trading: Full JEV- P-29- payment 2010- kkkk 1883 i\Iaint/Rehab Provl Php31,115,382.38 Php1,555,769.12 Php65,809,610.95 Php3,290,480.55 Php2,113,219.63 Php147,925.37 Php105,660.98 Php42,264.39 704,406.56 49,308.46 35,220.33 14,088.13 i I 730,178.85 51,112.52 36,508.94 14,603.58 581,396.28 40,697.74 29,069.81 11,627.93 I !

356,420.00 24,949.40 17,821.00 7,128.40 I 1,915,384.85 134,076.94 95,769.24 38,307.70 2,251,146.49 157,580.25 112,557.32 45,022.93 1,811,627.66 126,813.94 90,581.38 36,232.55 i 758,870.00 53,120.90 37,943.50 15,177.40 699,776.00 48,984.32 34,988.80 13,995.52 I 471,774.81 33,024.24 23,588.74 9,435.50 I 406,385.00 28,446.95 20,319.25 8,127.70 I ~ 13- May- 2010 25- ~Iay- 2010 25- May- 2010 3- Jun- 2010 3- Jun- 2010 29- Jun- 2010

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 16 of 19 04- Rds/Bridges Package 006629 S-10-20 Brks Pt Anilos Trading:

1st )E\T- billing ~Iaint/Rehab 2010- Provl Rds/Bridges 04- Exhibit Fackage S-10-12 006631 P-29-llll 1884 -:-\borlan A.nilos Trading: Full jE\T- payment 2010- Exhibit 1\Iaint /Rehab Provl 04- P-29- Rds/Bridges Package 007038 tnmmtn 1885 S-10-10 Aborlan ~-\nilos Trading: Full JEV- payment 2010- Exhibit ~Iaint/Rehab Provl 04- P-29- Rds/Bridges Package 007040 nnnn 1886 S-1 0-12 ~-\borlan "-\nilos Trading Full papnent Const Solar jE\T- Home Systems Dist 2010- Exhibit Proj Batch III Phase 1 04- P-29- Bgy Bagong Bay an 008032 0000 1887 PPC Anilos Trading: Full payment Const Solar .JEV- Home Systems Dist 2010- Exhibit Proj Batch III Phase 1 04- P-29- Bgy Culandanum 008035 pppp 1888 Aborlan Ani los Trading:

1st billing Const Terminal JEV- Waiting 2010- Exhibit Shed/Landscaping 04- P-29- Airport Compound 008770 qqqq 1889 Bancao-Bancao PPC 331,994.46 23,239.61 16,599.72 447,864.19 31,350.49 22,393.21 317,955.54 22,256.89 15,897.78 516,089.51 36,126.27 25,804.48 466,342.15 32,643.95 23,317.11 1,464,506.24 102,515.44 73,225.31 Total for second quarter ofTY 2009/TOTAL forTY 2009 Php16,345,338.22 Php817,266.91 Even accused impliedly admitted during her testimony34 that she received the above amounts from the Provincial Government of Palawan for services rendered by 1-\nilos Trading and Construction. She did not refute nor question the contents of the Certification issued by the Provincial Government of Palawan. Additionally, during trial she presented disbursement vouchers, certificates of final tax withheld at source (BIR Form No. 2306) and certificates of creditable withheld tax at source (BIR Form No. 2307) for the subject taxable periods which corroborate her receipt of the income payments.35 And second, accused did not declare all the payments of the Provincial Government of Palawan in her Quarterly VAT Returns for the third and fourth quarters of 2008 and second quarter of 2010. r 34 Id, Amended Judicial-Affidavit of Rebecca 5. Tiotangco (Exhibit "A-219") and Minutes of Hearing dated January 30, 2019, pp. 1987-2008 and 2032-2033. 35 Id, Exhibits "A-1"to "A-218", pp. 635-655, 669-737, 745-780, 791-820, 828-857 and 866- 904.

6,639.89 8,957.28 6,359.11 10,321.79 9,326.84 29,290.12 I third

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 17 of 19 Accused's Underdeclaration of Sales/Receipts: Docket Per Quarterly Quarterly Page VAT Return VAT Return No.

Filed Per Certification of Provincial Government of U nderdeclaration Palawan (previous of Sales/ table) Receipts quarter 2008 Exhibit P-13 620-621 Php4,655,063.50 Php34,694,228.57 Php30,039,165.07 fourth quarter 2008 Exhibit P-14 622-623 Php6,261,377.58 Php31,115,382.38 Php24,854,004.80 second quarter 2010 Exhibit P -16 626 Php6,3 7 4,325.35 Php 16,345,338.32 Php9,971,012.97 In this regard, this Court finds accused civilly liable for VAT resulting from her failure to supply correct and accurate information in her Quarterly VAT Returns for the third and fourth quarters of 2008 and second quarter of 2010. Credence is given to the evidence presented by the plaintiff as to the correct amount of accused's sales/receipts in the Certification36 dated December OS, 2013. To be deducted thereon are the sales/receipts declared by accused in her Quarterly VAT Returns 37 and the VAT withheld by the Provincial Government of Palawan found in the Journal Entry Vouchers38, disbursement vouchers, BIR Forms No. 2306 and BIR Forms No. 2307.39 Thus, the resulting basic deficiency VAT for 2008 and 2010 accused is liable for are as follows: 2008 Underdeclared VATable Sales Php54,893, 169.87 VAT rate 12% Total Output VAT 6,587,180.38 Less: Withheld VAT by Provincial Government of Palawan (3,290,480.55) Basic Deficiency VAT Php3,296,699 .84 36 Id, Exhibit "P-8", p. 588. 37 Id, Exhibits "P-13", "P-14" and "P-16", pp. 620-621, 622-623 and 626. 38 Id, Exhibits "P-29" to "P-29-uuuu", pp. 1781-1830 and 1844-1893. 2010 Php9 ,971 ,012. 97 12% 1,196,521.56 (817,266.91) Php379,254.65 r 39 Id, Exhibits "A-1" to "A-218", pp. 635-655, 669-737, 745-780, 791-820, 828-857 and 866- 904.

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 18 of 19

WHEREFORE, premises considered, accused REBECCA S.

TIOTANGCO is hereby ORDERED TO PAY the total amount of Php 12,669 ,618.14, for taxable years 2008 to 2010, inclusive of the 50% penalty imposed under Section 248 (B) of the NIRC of 1997, as amended, and twenty percent (20%) interest imposed under Sections 248(A) and 249 of the NIRC of 1997, as amended, respectively, computed until December 31, 2017, as follows: 2008 2010 Total Basic Tax Due I Php3,296,699 .84 Php3 79,254.65 Php3,675,954.48 ~Add: 50% Surcharge I 1,648,349.92 189,627.32 1,837,977.24 20% Deficiency Interest from January 26, 2008 to December 31, 2017 {Php3,296,699.84 X 20% X 3628/365 dqyJj I 6,553,658.63 I I 6,553,658.63 20% Deficiency Interest from January 26, 2010 to December 31, 2017 [Pbp379,254.65 X 20% X 2897 I 365 dqyJj 602,027.79 602,027.79 Total Amount Due, December 31,2017 Php11,498,708.39 Php1,170,909.75 Php12,669,618.14 In addition, accused Rebecca S. Tiotangco is ORDERED TO PAY the delinquency interest at the rate of twelve percent (12%), on the basic tax due in the amount of Php3,67 5,954.48, as determined above, computed from January 1, 2018 until full payment thereof pursuant to Section 249(C) of the Tax Code, as amended by RA No. 10963 and implemented by RR No. 21-2018.

WE CONCUR:

)iA' ~ ..-; '---- MA. BELEN M. RINGPIS-LIBAN Associate jttstice ~~Y.~~ CO.R(9YZON G. FER~~~RES Associate Justice ~

DECISION ON THE CIVIL ASPECT

0-599, 0-603 & 0-604 Page 19 of 19 ATTESTATION I attest that the conclusions in the above decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court.

QN. ~ -/1'- MA. BELEN M. RINGPIS-LIBAN Associate jttstice Chai1person CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court. ~.~A- MA. BELEN M. RINGPIS-LIBAN Acting Presiding Justice