CTA Case No. EB CRIM-47 (Amended Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC ********* FELONILA Z. CALUAG, CTA EB CRIM. No. 047 Petitioner, (CTA Cri�m. Case No. 0-330) Present: -versus- DEL ROSARIO, P.J., CASTANEDA, JR., UY, FASON-VICTORINO, MINDARO-GRULLA, RINGPIS-LIBAN, and MANAHAN, JJ. Promulgated: PEOPLE OF THE PHILIPPINES, Respondent. MAR 21 ~ X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - X d : 97/- ,.,_ ' AMENDED DECISION UY, J.: For resolution is petitioner's "URGENT MOTION FOR RECONSIDERATION" filed on October 19, 2018, 1 without respondent's comment despite due notice,2 praying for the setting aside of the Court En Bane's Decision dated September 17, 2018 , the dispositive portion of which reads: "WHEREFORE , in light of the foregoing , the instant Petition for Review is DENIED. The Decision dated September 6, 2017 and Resolution dated January 19, 2018 are hereby AFFIRMED with MODIFICATION . 1 Docket, pp. 346 to 395. 2 Resolution dated November 13, 2018 vis-a-vis Records Verification dated January 17, 2019 issued by the Judicial Records Division of this Court, Docket, pp. 401 to 403

AMENDED DECISION CTA EB CRIM. No. 047 Page 2 of6 Petitioner Felonila Z. Caluag is hereby found GUILTY BEYOND REASONABLE DOUBT of violating Section 255 of the NIRC of 1997, as amended. She is hereby sentenced to an indeterminate penalty of one (1) year, as minimum, to two (2) years as maximum term of imprisonment, and to pay a fine in the amount of P10,000.00, with subsidiary imprisonment pursuant to Section 280 of the NIRC of 1997, as amended, in the event that petitioner Caluag has no property with which to meet the fine imposed upon her, or is unable to pay such fine. In addition, petitioner Felonila Z. Caluag is ORDERED TO PAY the total amount of One Hundred Sixteen Million Six Hundred Nineteen Thousand Seven Hundred Twenty Two Pesos and Seventy Three Centavos (P116,619,722.73) for taxable year 2005, inclusive of the 50�/o penalty imposed under Section 248(8) of the NIRC of 1997, as amended, computed as follows: Taxable BASIC INCOME 50% Penalty TOTAL Date P116,619,722.73 Prescribed for Year TAX DUE Payment 2005 P77,746,481.82 P38,873,240.91 April 15, 2006 In addition, petitioner Felonila Z. Caluag 1s ORDERED TO PAY: (a) Deficiency interest at the rate of twenty percent (20�/o) per annum on the basic deficiency income tax from the date prescribed for payment until December 31, 2017; (b) Delinquency interest at the rate of 20�/o per annum as follows: (a) on the total amount of One Hundred Sixteen Million Six Hundred Nineteen Thousand Seven Hundred Twenty Two Pesos and Seventy Three Centavos (P116,619,722.73); and (b) on the 20% deficiency interest which have accrued as stated in (a) hereof, computed from the date prescribed for payment until December 31, 2017; and (c) Delinquency interest at the rate of 12�/o 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.

AMENDED DECISION CTA EB CRIM. No. 047 Page 3 of6 SO ORDERED." In support of her Urgent Motion, petitioner raises the following arguments, to wit: 1. The prosecution failed to establish that there was income that would require Caluag to file her income tax return for the year 2005. 2. The BSP Certification of alleged payments to the petitioner cannot establish income as it is defective. 3. While petitioner readily admitted income, which barely covered her family's basic daily needs, the prosecution failed to prove the amount of said income to justify the conviction. 4. The original or certified true copies of the Letters of Delivery and Sale were never presented. 5. Petitioner did not willfully fail to file her annual ITR for taxable year 2005. THE COURT EN BANC'S RULING Petitioner's Urgent Motion lacks merit. After a careful examination and consideration of the petitioner's Urgent Motion for Reconsideration, it is noted that the arguments raised in the said Motion are mere reiterations of matters which have already been considered, weighed and resolved in the assailed Decision. Thus, We shall not belabor, in this Amended Decision, to repeat the disquisitions made therein. However, this Court finds the necessity to modify the imposition of deficiency and delinquency interests in accordance with Section 249 of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963 and implemented by Revenue Regulations (RR) No. 21-2018. WHEREFORE, in light of the foregoing considerations, the instant Urgent Motion for Reconsideration is hereby DENIED for lack of merit. Nevertheless, in view of Section 249 of the NIRC of 1997, as

AMENDED DECISION CTA EB CRIM. No. 047 Page 4 of6 amended by RA No. 10963, and as implemented by RR No. 21-2018, the dispositive portion of the Court En Bane's Decision dated September 17, 2018 is hereby MODIFIED to read as follows: "WHEREFORE, in light of the foregoing, the instant Petition for Review is DENIED. The Decision dated September 6, 2017 and Resolution dated January 19, 2018 are hereby AFFIRMED with MODIFICATION. Petitioner Felonila Z. Caluag is hereby found GUILTY BEYOND REASONABLE DOUBT of violating Section 255 of the NIRC of 1997, as amended. She is hereby sentenced to an indeterminate penalty of one (1) year, as minimum, to two (2) years as maximum term of imprisonment, and to pay a fine in the amount of P1 0,000.00, with subsidiary imprisonment pursuant to Section 280 of the NIRC of 1997, as amended, in the event that petitioner Caluag has no property with which to meet the fine imposed upon her, or is unable to pay such fine. In addition, petitioner Felonila Z. Caluag is ORDERED TO PAY the total amount of P449,294,236.92 for taxable year 2005, inclusive of the 50�/o surcharge imposed under Section 248(8) of the NIRC of 1997, as amended, and twenty percent (20�/o) deficiency interest and delinquency interest imposed under Sections 248(A) and 249(8) and (C), of the NIRC of 1997, as amended, respectively, computed until December 31, 2017, as follows: Basic Tax Due - Income Tax p 77,746,481.82 174,812,431.86 Add: 50% Surcharge p 38,873,240.91 P252,558,913.68 20% Deficiency Interest from 196,735,323.24 April 16, 2006 to January 9, P449,294,236.92 2015 (P77,746,481.82 x 20% x 3,191 days/365) 135,939,190.95 Total Amount Due, January 9, 2015 Add: 20% Deficiency Interest from January 10, 2015 to December 31' 2017 (P77,746,481.82 X 20% X p 46,307,082.60 1,087 days/365) 20% Delinquency Interest from January 10, 2015 to December 31' 2017 150,428,240.64 (P252,558,913.68 X 20% X 1,087 days/365) Total Amount Due, December 31, 2017

AMENDED DECISION CTA EB CRIM. No. 047 Page 5 of6 Moreover, petitioner 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 ~252,558,913.68, 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. SO ORDERED." SO ORDERED. ER~.UY Assoc1ate Justice WE CONCUR: Presiding Justice ~~�~ c.~~/J: ~- 14h_ ..6 , L._. Jt.fAN-ITO C. CASTANEDA, ~R. MA. BELEN M. RINGPIS-LIBAN Associate Justice Associate Justice ~ ~J;~}J~i~:&~ Associate Justice ~~-~ CATHERINE T. MANAHAN Associate Justice

AMENDED DECISION CTA EB CRIM. No. 047 Page 6 of6 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