CTA Case No. 3470 (Decision)

REP UE T.. IC OF THF. PHIL,IPPI NES COURT OF T AX i\ PP f.~ AL S QlJ E;?; ON CJ TY SILAGO TIMBER CORPORATION , C . T . A. CASE NO . 3 4 7 0 �:::�r:~ t ..i. t :i. on F' r.. , ..... V E' r.. <;'; U.~::; ..... THE COMMISSIONER OF INTERNAL REVENUE, DEc I I 0 N pE�! t i t .i 01'1!�? I" 'f 0 r� tiE! �i' .i C: :.i.F~ l'l C: y ~~ �,;; :i. 1�1t:;�~':;~:; . .\1 '1cl .i.1 �1C: < .l lll C~ t'.<::~ ;.; !? ;:'; i n 19'7~5 . acqu.:i.r .i.n <;,J, h n J d .i. 11g :� 1 E! �,1~:,; .i.. r 1q :� pt.ti��� C h �:',\ ~"i :.i. r I CJ 01�� CJ th E.~ t"'',.'-' .\. :;F~ o P E' t " ;,:, t-.r-:, ~:; t: :i. m bt-:�' r. <':1 1"1 cl I Cl l' ' 'f r '1-' 'E' S t. c: r1n c �:.-!:-:; �::; .J.. Dl 1 I:::.:E! VE!I'l U E' \ !.l"l ci P ,... clt~ l l1i .'.ll cl El. lld no t:.:i. c:H c! i;;l. l"Pc:l F�c ::'l l'" \.\ t.\ 1-'"Y J. 6 ~ J.. 9 HJ.. ft11' - p;;~l' � r �::!1' ' L c) (JF' t. i:l. ~-: l .ic::\ IJ.i.. l.i ty �fo l'" t .hr;-' yE~ c�:lt " .l9 7 ~'i:, CD'nr1u. l::r::~ cl ;,;~ ~:; fu l l uv,!s : S<. 'i. :i�:l:~ dUt�:l !"lE�11'" .i . n VF~"i (�_j _(yl.t.i�T I F?O , :.?~:":.:.? .. 00 Z.:i/. ::;u n ::h<.:II"CJ E' ~.�:.'_ ~~ ~)~l~.3 :.�C)<) .l"'% i nt:. . f r ,. l �../,;:o� -'76 1.�.o i' -::\,_��{\) l:�~? :':i :� :',?"-7'0 '()(1 ~?01. :i.nt ,. fr.... H..-{ q ....fi() l::u :?�--:.?/��{3.'1. J.h ,, o:~~:u . '-l t . TOT~. - r-~��o NT !.ltJ:< ?~ C:f.l.J...FCT l lJ ..E >' ~ Qf,lC? ,. ?S' P/.1-4 .,::~:1 0 . 20 65

DECI S I ON CTA CASE NO . 3470 .,.:.�,. Likewi se, und er letter of demand a nd a ss0ss ment not i ce d <=:t ted 2"7 ~� l9Bl cl t~f .i. e: .i.ency i"'k:>t l cr;:;�::; pt:��r�� t��ch nn Add: L.h.=:ll J.c:)t;,l,:\hl�.''' d! ~�:l uct: i.r:n~:;; 1.. An~:wt i ;,~,::d�..i.cn of .:i. mpr��c:N!:~m~~~n t.s F':I.OO, 000, C(> 2.. F'<.'lr..�l:.<::; i�!ncl <;;uppl i.1~:; c:.:~ p.i. L�;,J .i :.::: t?<:l ..... 5'0 ; f:.t-~3 ~- H8 ['l (?_0 ~.b6B .. F~Fl 1'-k:> t . income~ pl?r.. .i nv! :>s tiq r.~.tion .tr:u., :::.�sc; . :=:.:::. Ta:{ duf~ t l �lE~n~:cT l '.':t:~, I.J76" (Y.) f-lf.::lcl : ?:2, ::1.;f 1 . o/.? .1.4'/~ .i.nt. .. ft- .. �l-�-� lb.. �-76 . ..lOCl ,, O() to 4-..-lb-..79 Compran.isE' �few.. non�. . c:ompl iancF' of 1.-"1.\. Lhholtl�- irH.J ta:< en w,;l.(;Jf?�::::. TCl"rAL TAX DLF.: (~\IT) CCJ!....LECTIH .E F' e t i tion�~ t�.. pt .. o-1:-. E~ �:;; t:E:~d t. hc~ !''>d .i..d i:~::;s !~'ss m e r' 1.-. s on Com mi s sioner of .i.. r 1 hi ~::; t l f) t '.f? t"" Hen ce thi s petition for re v iew, sa me� s u I:Jm .i. t t E�d �f Cl l" d t:?C:: .i �:; :i. CJI 'l c>n t: h!:�) i:J ,~-~- o:;; i !''> o �f -1:'. h e� B IF~: records and pl earling s. de tr::�r.. rn.in i:'~. t.i. on t.h r.-': v ,"\ 1 i d .:i. ty of t: h F:� c:!E�f .i c .i r::�ncy t ,'::l:< 66

DECISION CTA CASE NO . 3470 .'~ s ~:; (~~'" ~;; rn E! n t�. ~:; ~�~ h:!.. c h pF! 1::. i �t..i. O ( 1c~ ,.. r:.: un "'; .i.. JF~ ,,. ~::; t .n h <'.\ VE! no l e CJ '"' 1 n c>,.. fa c t '�.t i :l 1 I:J ;:~ s e ~:; , t .o \'1 .i '1:�. :: o f .i. n t e r��e ~::; t. a r1 d ~::; �..t t'"C h;, r��cJ E:� n n t il F' 1 c .:' ,,, ~:; ~:! n 'f pF~ 1'" ~:; u n "'' 1 p r� opE�r-� t.i.c;~s. F' E! t :i. t-..i. on C' l' " ;:~ '' C' l'.. ~::; t. h ,,, t. !': h (�.'' I'" I:'.' v1 ,�,_ :::; '' n u c: o l 1. ec: t. :i.un o r� ~Jr � o~.s r�E~CF!:i.pt::; �f i'" O fll 'i::h r~ .:.lllc:~(Jr:~r l C.\ C t . .i v:i .t:L c! :~-. o f T h t:~ t'.. r> pu r� t of �i. t l VE? c.:; t .i. (.,l .-:~ t .i u 1�1 1�1( ,~..,�(? \/ (? I' .i. n d :.i.. c '"� i::(�:~~::; t hat p eti tion er d erived j I) (" ()(l')P. �f I'" C)(Jl :i., t�.,,, 1'1 i n inq Cor.. r:'r::J r-<'It .i.u n ~� in ~ : :; urn of F'6'74 :, 400 .. 00 f or� t: l 1('�~ yc;:, r� .i.n q ,_.,~.,.,, ,;:; i. �. :i. n l l :, bt .t +: f::, :i.l r�:!c::l t.c :! fi. J. E~ a I'"P l:.Ut'" ("l ,:,lnc:l p ay th( ~ CUI " I'" f-?~c; pc>l �l.-.:l :i. n q ppr �c:r':~ nf.:. <:\(;) FJ Cudr.::� ( n cw~ Sf'~c ti� :Jn s C ornrn :\.:::;s .i..o t�l E! l'.. C C') ifli :JU !"" t_ <,;; \'li Lll uf ve r- .i ty <::~ ncl th E' pE? t .i. t i oner� !� l .:~":i �l.�. h F! b �,.J. I' dE�n of pt..�ov .i. n tJ I t f c:~ .i. l ('?cl � Pr.. o u(;Jht�. -1:-.o h c~a r� up on t:.l �1c 67

DECI SION CTA CASE NO . 347 0 fall ~ so to s p ea k . affirm the impor�t a nd f o r ce of s uc h ~ssess m e nt ~:; uf �fE~ I.. Pc:l to pctr.. ify i n fut .�i. J.i.1 �.,,,. :? ) P_<;~ J'.i c.::. .i, �~ l l c:. '):' . . ,i.I) t:.: EJrnc~ .... .i . r l P76~0 35. 9 2, i n c lu sive of inte r 0st . q U P<::; t .i Cll'l j_ ~:; v.J h r:.! t. h F' r � income (l ) F':LOO !' 000.00 ,','\floCI t"� i::.i. Z ,7;1, t .i. CJrl �f o l'" dE:>v~.::� lopm r~ n t c.1n d .:. mi :J r.. ovr:::� m�:o�r ll:s �.Jf �t. ll c~ r�oa.cl<::; :i.n t .h E' lum be r con ct .ssi on , a ncl (2) P100,743.20 expGn ses f or p ~"\ r.. t ~; '"' n cl <:> Ll p p l i r3) ~" inc: u r.. r.. P c:l .i. n t .l�1r-:~ u r.. d :i. r1<~. r �y c: L) u r-�:::; e In �1. he~ C!. i�:l. .i f�l F~ d cl<�'~tlu.c �i.�. .i.un, r.. e~; pond (:'~ n �{: c: o1 �1<:;:\. dE' t"� .::; t h f~ o.f.). _r.. <::; :1,:., 11 Trnpr.. o vP rn r::~ nt:. ~; o n t .o b F~ a ca. p .:i. t �.,;�,_J .ir l V!:'?:::; t.mE~rl �t. .'J nd rl o �{�. cl~:~d r..tct" i l.:> l E' ;;~ c:; ?-~pp a r � r.:>ntly r.. u 1~:? t: h a t an ''-' :< p �::> n d :i.. t u ,.. e for� c -::< p .i. �{�_;,�. 1 .i.. m p!� �c:Jv<�? rnE-? n {: �:; hou l d he t"�E~c: n 'IC' t " r.~cl 1:: h r �uu.q h d ~'~ pr�~:� r:: :i. �3. t i un c: h E:1.rf.:Jt�?:;:; 68

DECISION CTA CASE NO . 347 0 ..... 5 �-� "1\lu <:\ rn o u.r l t e :-: pr:?n d r:~ � �J in r�� ~?~::; tor�� :i.. r1 'J p :���;J p <:�:~ I' � t y c1 r�� rn ,,,, k .in 'J d F~ p r��r::?c .i. ''" t i. o n h <:> s bE'!�?rl rn<;~. cl E' � '' of only P10~07 4.32 leaving the a mou n t of P 90,668.32 and fou.nd th ,�:,\t t hE~ p .::~yrn o nt~; :i..1 �1 t: o c: a p .i t a l 1 11..1. t . l. ' '� Y ~"' t � l1 ,:�,,.r�1 rl E!C e~:;~;; <::\ !'" '( f:~ :-: jJ C'rl ":;E' :�; .i.1 �1 t i 1! ~' t ) p !;: , .. ,� '. �1. i.! .I l l 0 t ''''� bu.<:;: .i. rl !::-~"5 '::; ,. p~cving ot h erwise. And , 1�1o 1::. h .i..nq :i n L h P r�� f.�~c:: ur��cl �s to 11'-l h <::\ t petit.iol �lel ". c:J. ,:l.ims d~:; ordi n a. l' .'>' and n ecF:':::;~:;a r��y c on f i r�rnE!cl. S u f f .icc:~ :i. t t. h F�' r-� l"'.! f D t'� ! ~ :� b e, t h t .I�H:� c: i. t��� c: 1.1mc.; l. t:\rl c: C'"'' thE! co ne: lu::;inn t.h <~t PF' t ..i. i.:..io 1�1c-? r" to p t-�� ov E' 69

DECISI ON CTA C A!3E NO . 3470 ��~� l) ..... e n t i t 1 Pm!'~n t to e f E:\ v o r� .-::~ b 1 C" ci F' !�: (::' r Pl :i.11 F.:\ t .i u1 �1 'f o t" th e;! des.ir.. ed r-.. r-::~ 1 i.G~'f ., \IJHE I=\:E:FORE , pet. i. t.i. em cl i ~:; m .i <:';sed pe t itioner's costs . !30 Ll RDE FiFT) . Quezo n City, Met ro Mani la , Fe bruary 28, 1989. ~- REYE (.) s �;oc :i.a.t".E~ ,.J '..l.d q e WE CO NCUR: LLER Pn;:~s .i � ,J f...l.cl g E' '. --- ,7 ..,. ~,._,.,.,. C . ROA. QIJ IN ~JUc:i (J F-' C' E l~ T .1: F I C .A. "[" I -::Jo H I c f:-~ r- 1.:. i f y t . hi0.1". c:l r.=..'c: .i.,,_:.i.. o n t he Court o'f Tax Appeal s Sect .i..on .13, A r� t �.i c l t:~ 'v' I I I o �f' t. ll F� C c'l"i ~�c '1-. �i tu l.i.r.J n .. AI'1A NTE F.i F' r�r:,;�;�i.r:J.i.r� J .J ud rJ r:�' CCJI.f.J'" t . () 'f' T i:'l.)< flpp C:' �':\ 1 <::; 70