CTA Case No. O-31 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY TfliRD DIVISION PEOPLE OF THE PHILIPPI NES, Plaintiff, CTA CRIM CASE NO. 0-031 & 0-032 -vers us- Prese nt: BAUTISTA, Chairperson PALANCA-ENRIQUEZ, and COTANGCO-MANALASTAS, JJ BENJAMIN G. KINTANAR, Promulgated: Respondent, SEP 27 20\0 ~1-?,Q--.-~ /.� .?~~-,....... . X------ -- - ---------- ---------------- -------- -- --------X DE,CISION COTAN GCO-MANALASTAS, J.: THE CASE Before thi s Court are two separate Informations charging acc used Benjamin G. Kintanar with violation of Section 255 of Republic Act No. 8424, otherwise known as the "Tax Reform Act of 1997", as amended, for his alleged failure to file his income lax return for the taxa ble years 2000 and 2001. The accusatory portion of th e Informations read as follows / / 19 5 C'ER'flfl ED 1'RUE Cbi')Yt ~- CHRISTINE C. MA~A-GUARIN ~ Executive C lerk of Court II Coun of Tax Appeals

\ Page 2 of 49 DECISION CTA CRIM Case No. 0-03 1 & 0-032 People vs. Benjamin G. Kintanar Criminal Case No. 0-031 "That on or about th e 16th day of April 200 l , in Parafiaque C ity, Philippines, and w ithin th e jurisdi ction of thi s Honorable Co urt, the above-named accused, a F ilipino citi zen residing in the Philippines, w ho is engaged in business and earning incom e as di stributor of F orever L iving Produ cts Philippines, Inc., w ith obli gati on und er th e law to fil e his Income Tax R eturn (ITR) for the taxabl e year 2000 on or before the 15th day of April 2001 , did , then and there, w illfully, unlawfully and feloni ously fail to fil e his inco me tax return w ith the Burea u of Intern al Revenue for the year 2000, to the damage and prejudice of the Governm ent in th e es timated am ount o f P3,475,090.64, exc lu sive of p enalti es, surcharges and interes t. ' CONTRARY TO L A W. " Criminal Case No. 0 -032 "That on or about th e 16th cl ay of April 2002, in Parafiaqu e C ity, P hilippin es, and w ithin the jurisdicti on of this Honorabl e Co urt, the above- named accused, a F ilipin o citizen res iding in th e Philippines, w ho is engaged in bu siness and earning incom e as distributor o f Forever L iving Products Philippines, In c., w ith obligati on und er the law to fil e hi s Income T ax Re turn (ITR) for th e taxable year 2001 on or befor e the 15th day of April 2002, did, then and th ere, w illfully, unl awfull y and feloniously fail to fil e his in com e tax return w ith the B urea u o f Internal Revenue for the year 2001 , to the damage and prejudi ce o f the Government in the . , ,.. :: I . . es ttmated am ount of P5,l75,242.12, exclu sive of p ena lll es, surcharges and interes t. ' CONTRARY TO LAW ." CERTI FIED TRU E COPY: ~ CHRISTINE C. MAZA-GUARIN Executi ve C lerk of Court II Court of Tax Ap peals 1 The CORRECT ESTIM ATE D AMOUNT is " 5,1 72 ,519.25" . Note that in Ex hibit "J-4" th e Total l!!come Tax Still Due fro m Benj amin Kintanar fo r th e taxa ble year 200 I is "5, 172,5 19.25" and NOT "5, 175,242 .1 2" as erroneously prov ided fo r in the In forma tion fil ed by the Stale Prosec utor. "Ex hibit "J-4" is Annex "A" of the Final Decision on Disputed Assessment issued by Jose Mario C. Buflag, Depu ty Co mmi ss ioner of the Lega l and Inspection G roup o f th e BIR. ~ 196

DECISION Page 3 of 49 CTA C RJM Case No. 0-031 & 0-03 2 People vs. Benjamin G. Kintanar Accused vo luntarily surrend ered before the Second Division of the Court of Tax Appeals and posted the required surety bail bond for his provisional liberty in the total amount ofP40,000 .00 for both cases. 2 On March 22, 2007, accu sed, by counsel , fil ed a Co mplian ce and Motion to Defer Arraigment3 seeking deferment of the arrai gnment until th e Depatiment of Justice (DOJ) has resolved the petition for revi ew fil ed by th e accused on September 25, 2006 . A Comment/Opposition" was fil ed by the People, throu gh the Revenue Attorney on March 27, 2007. Thi s Court granted the motion on April 2, 2007, arraignment was reset to May 21, 2007. Upon arra ig nm e nt 5 accused assi sted by defense co unsel de parte, A tty. , Marie Miche lle D. Mufioz, entered a p lea of "NOT GUILTY " to both charges. On June 14, 2007, 6 upon motion of the co unse ls for both parties, the two cases were ordered consolidated. The Preliminary Conference7 and Pre- tri al8 were held on Lviay 30, 2007 and June 14, 2007, respective ly. After th e termin ation of the pre-trial , the case was set for the presentati on of the parties' respecti ve ev id ence. Formal Offer of Evid ence 9 was fil ed by th e prosecuti on on June 12, 2008. The accused , through counse l, fil ed hi s Commen t/Objection to 2 Docket pp. 38-87 3 Docket pp. I00-10 I 4 Docket, pp. 159- 162 5 Minutes of the hearin g, May 2 1, 2007 , Docket, p. 168 ; Reso lu tion dated May 2 1, 2007, Docket, pp . 170- 17 1' 6 Minutes of the hearin g, Jun e 14, 2007, Docket, p. 179 7 Minutes of Preliminary Con fe rence, Docket, pp . 172- 178 8 Minutes of th e hearin g, June 14 , 2007, Docket, p. 179 // CERTIFIED TRUE COPY: f/"' 9 Docket, pp . 473-5 12 c::.~ - _;..z::::__ CHRlSTTNE C. MAZA-GUARIN 197 Executive C lerk of Coun 11 Coun of Tax Appeals

DEC ISION Page 4 of 49 CTA CRJM Case No. 0-03 1 & 0-03 2 People vs. Benjamin G. Kinlanar Plaintiffs Formal Offer of Ev id ence 10 on August 13, 2008 . In a Resolution 11 promulgated on September 2, 2008, th e Formal Offer of Ev idence filed by th e prosecution was ADMITTED subj ec t to the Court's final evaluation and/or appreciation of th eir purposes, materi ality, relevancy, and probative va lu e to the issues invo lved in these cases . Accused, after presentation of hi s evidence, fi led, thru coun sel, hi s Motion to A dmit Form al Offer of Ev id ence 12 on August 20, 2009 . Opposition (On the Accused 's Motion to Admit Formal Offer of Ev id ence) 13 was filc;d by the plaintiff, by counsel; on October 6, 2009. A Resolution 14 was rend ered on October 19, 2009 w hi ch GRANTED the Motion to A dmit Formal Off�t of Ev idence and ordered prosecution to comment on the Formal Offet, of Evidence of th e Acc used. On December 2, 2009, a Resolution 15 was promulgated which ADMITTED Exhibits " 1" to "29", inclusive all th eir sub-markings, EXCEPT Exhibits " 12-D", "13 -D", " 14-D" and " 15-D" for fa ilure of the defense counsel to mark , identif-y, and submit the sa me to th e Co urt. In th e sa me Resolution, the Cou rt noted that Exhibit " 18" is a copy of BPI Check No . 1083979, and not a copy of BPI Check No. 1093979. The admitted exhibits are subj ect to the Co urt 's final evaluati on and/or apprec iati on of their purposes, materiality, relevancy, and probative va lue to the iss ues invo lved in thi s case. The par(ti-:e:..s--- 10 Docket, pp. 845-854 CERTIFIED TRUE COPY: 11 Docket, pp. 856-857 ~L 12 Docket, pp. I012-1031 CHRISTINE C. MAZA-GUARIN 13 Docket, pp. I085-1090 14 Docket, pp. I096- 1097 Exec11tive Clerk of Co w1 II 15 Docket, pp. 111 3- 111 4 Cuurt of Tax Appeals 198

DECISlON Page 5 o f 49 CTA CRJM Case No. 0-03 1 & 0-032 People vs. Benj amin G. Kintanar were given thirty (30) days from receipt of notice to submit th eir simultaneous memoranda. Accused Benj amin G . K intanar, Jr. , through counsel, fil ed his Memorandum 16 on January 18, 20 I0, whil e the p rosecuti on submitted its Memorandum 17 on Febru ary 17, 2010. On January 11 , 2010 an Ord er18 w as iss ued transferring this case to the "Third Div ision" of the Court of Tax Appeals purs uant to CTA Administrative Circul ar No . 01 -2010 . In a Res oluti on 19 promul ga ted on Febru ary 25 , 2010 by the Third Division of the Court of Tax A pp eals, the cases in caption were submitted for dec ision. Evidence (or the Prosecution T he prosecuti on .presented six (6) w itnesses to establish accused's culpability, namely: Mr. Simp licia V. Ca bantac, Jr. , A tty. Christina C. Barroga, Mr. Michael T. Caj andab, Ms. A nn abelle A laca ntara, Ms . Carmencita F lores and Mr. Romeo E. N ara r~ o. Thereafter, th e prosecuti on rested its case w ith the admission of its evidence ? ' / v 1. Testimony of Simplicia V. Cabantac CERTIFIED TRUE COPY: e--~L CHRISTINE C. MAZA-GUARIN 16 Docket, pp. I 11 5- 11 30 Executive C lerk of Co u11 II 17 Docket, pp. 11 50-11 69 Court of Tax Appeals 18 Docket, pp. I 136 19 Docket, pp. I 172 21 Ex hibits " A" to "JJ " , Reso lu tion dated September 2, 2008 , Docket, pp. 856 -857 199

DECISION Page 6 of 49 CTA CRlM Case No. 0-03 l & 0-032 People vs. Benjamin G. Kintanar Prosecution 'vitness Simp li cia V. Cabantac, Jr., th e firs t witness for the prosecution, is 42 years old, married, residing at 25 -G Mayaman St., UP Village, Quezon City, Revenue Officer IV, National Inv es tigation Division, BIR. During the hearing held on July 4, 200 7, he affirmed tile truthfulness of the a ll egations contain ed in hi s Afficlavit22 elated .June 29, 200 7 and likewise confirmed that the signature therei n is hi s signature. A lso, he atlestecl that the docum ents presented to him during th e said hear in g were th e very sa me docurnents he mentioned in his Affidavit, which documents were marked as Exhibits "A" to " J", "M", "N", "0", "P", " Q ", "R ", "S", " V", inclusive of their sub-marIo0ngs. -73 In his A ffidavit, witness Cabantac, Jr. declared that he is a Reven ue Officer ass igned at th e National Investigation Division (NID) of th e Bureau of lntemal Revenue (BIR) authorized, amon g other things, to inves tigate individual s and entities that may have committed vio lations of tax laws and recommend criminal prosecution of v io la tors, to conduct preliminary investi ga tion for the purpose of es tablishing prima facie ev id ence of fraud . Accord ing to Cabantac, Jr. , on th e basis of th e complaint re ferred to the ir office, regarding the a lleged ta x evasion schem e for non-filing of tax returns by spou ses B e 1~jamin G. Kintana r, .Jr. and Gloria V. Kintanar, Access Letters dated July 18 , 2002 (Exhibits "Q" to "Q- 1") to Reven ue Dis tric t Offi cers of Revenu e Di stri ct Office (RDO) No. 52, Parafiaqu e C ity and? - -- 22 Docke t, pp . 180- 18!J CERTiriEb 'fRUf! eo~Y: 23 TSN dated Jul y 4, 2007, pp. 9-18 ~ 200 CHRISTINE C. MAZA-GUARIN Ex.:cutive C lerk of Court II Court of Tax Appeals

DECISION Page 7 of 49 CTA CRlM Case No. 0-03 I & 0-032 People vs. Benjamin G. Kintonar Revenu e Distri ct Office (RDO) No. 43 , Pas ig C ity \Vere iss ued by A mand o R.. Rosimo, Chi ef of Tax Fraud Division, indicatin g therein that the investigating team be furni shed Yvith the listed doc uments pertinent to the preliminary in ves ti gation. Access Letter dated Jul y 19, 2002 (Exhibit " fZ") to Forever Living Produ cts Philippines, Inc. (FLPPl) was also issued a uthmizin g the investi gatin g team to secure a certifi ca ti on as to th e tota l in come payments/commissions, and bonuses earned by spo uses Ber~amin G. K intanar and Gloria V. Kintanar, toge th er w ith th e amount of taxes w ithh eld for calendar years 1996 to 2001. In res ponse to the Access Letters, RJJO No. 43 , Pasig City issued a Certifi cati on dated A ugust 19, 2002 togeth er w ith attachm en ts (Exhibits " S" to "S- 1") that veri fica tion fr om the BIR-lntegrated Tax Sys tem ([TS) and district record s show th at sa id spouses are not reg istered and have not filed any returns in its district; while RDO No. 52, Parafla qu e City iss ued a Certifi ca tion dated Sep tember 17, 200 2 th at as per verifi cation mad e fr om availab le records of its , office, said spo11ses has no record on fi le Co r the years 1999 to 2001 (Exhibit "P"). On the o ther hand , Mr. Ivlichael T. Caj and ab, Comptroller of FLPPl sen t a letter-reply dated January 20, 2003 (Exhibit M ") indicating therein the total income paym ents they made to Ivlr. K intauar for ca lendar years 1999, 2000 and 200 I , to wit: "Ap pli cable Year Amo unt of Income Amo unt of Tax 1999 Pay rn e nts Withh eld 1,204 ,763 .43 - 12,04 7,634 .3 0 2000 J 8,738,78 0.00 1,873,878. 00 - �----- - - - - --~------ -- - - - - - -- - - - ----- - - � 2001 27,767,655.58 2,776,765.56 " ~ CERTIFIED TRUE COPY: c__~�L 201 CHRJSTINE C. MAZA�GUARIN Execulive Clerk Df CYllli II Court of Tax Appeals

DEClSlO N Page 8 of 49 CTA CRtM Case No. 0-03 ! & 0-032 People vs. Benjamin G. Kin/an ew Witness Ca bantac, Jr. further s ta ted lllat the res ult of th e initi al inves ti ga ti on revealed th at spo uses Benj amin G. Kintanar and G lori a V. K intanar are dis tributors and ind epend ent contrac tors of FLPPI and is actu ally co nsid ered as th e No . 1 di stributor in th e Philippines. li enee, on th e bas is o f the sa id initial inves tigati on, Letter of A uthority (LOA) No. 00 029663 dated March 28, 2003 (Exhibits "A" to "A-3") was iss ued aga ins t the spo uses, auth oriz in g th e investi ga ting tea m to examine th e books o f accounts and oth er accounting records fo r the peri od covering taxable years 1999 -20 02 . T he sa id LOA w as a llege dl y rece ive d by Mr. K intanar on Ap ril 3, 200 3 as shown by hi s sign ature (Exhibit "A-3"). D espite receipt of the L OA, tb e spouses did n ot submit the required doc uments. Consequ ently, a Second R eques t fo r the Presentati on of R ecords dated A pril 2 1, 200 3 (Exhibit " B") and F inal No ti ce for presenta ti on and/or produ cti on of the required reco rd s/docum ents elated May 5, 2 00 3 (Exhibit "C") were se rved and allegedly received by the s po uses . U pon fai lme of the spouses to present or submit th e required documents, a Subpoena Du ces 'Tecum dated Jun e 11 , 200 3 (Exhibit D " to "D -2") w as iss ued to them commanding them to appear be fore the Chi e f Prosecution Div isio n in order to enforce co mpli ance in the presenta tion of their books of acco unt s and o ther acco unting a LJCl tax record s. Again, the s pouses did n ot comply Mr. Cabautac, .Jr. furth e r narrated th at on December 9, 20 03, a Preliminary Assessm ent No tice (Exhibits "E" to "E-4") was iss ued aga ins t the spouses informing th em th at de fi ciency taxes we re found clu e ag_ains1 th.e m . fo r ~ A ___ CERT!Flefl i'RUE C(JPY: ~ CHRI STINE C. MAZ A-GUARIN 2G 2 Executive Clerk of Court II Co urt of Tax Appeals

DECISION Page 9 of 49 CTA CRlM Case No. 0-03 l & 0-03 2 People vs. Benjamin G. Kintanar taxa bl e yea rs 1999 to 2002 \Vith the comp lete deta ils of di screpan c ies, and g iviug them fift een (15) days to explain the discrepancies found against them . As the spouses did not comply, they were considered in defa ult. Co nsequ e ntl y, a Formal Letter of Demand dated February 26, 2 004 (Exhibits " F" to "F-7") including Assessm ent No tices (Exhibits " G" to "G -7") were issued for the p ay me nt of de fi cienc ies on ta xes . Still , no pay me nt of taxes was macle by the spou ses. Ins tea d, accused B enjamin G. Kintanar, Jr. sent a Letter dated August 31, 20 04 (Exhibits " H" to "H-3") protes tin g th e defi c iency assessments for la ck of factual a nd legal basis, toge th er w ith pho toco pies of his income lax returns for 2000 , 2001 and 20 02, and und ertakin g to s ubmit additiona l docum ents \\iithin s ix ty (GO) da ys th ere fro m. 1-Iovvever, no document s were submitted . l-Ienee, a Letter dated Septemb er 30, 2004 , (Exhib its " I" to " I-1 ") was issued by l\!Ir. Arne! SD. Guballa, C hi e f of the Na tional Inves tiga tion Division, informing the spou ses that no documents have ye t been rece ived by th eir office and that they have s ix ty (60) days from the date the protest was 1iled or until Novemb er 3, 2004 to s ubmit their s upporting documents otherwise, th e assessm ent shall becom e final , exec utory and demandabl e. Since there was no compliance by the spou ses, a F inal D ecision on Di sputed Assess m ent dated December 13, 2 004 (Exhibits " J" to "J-5 ") was issued informing the spo uses about the denial of their pro tes t for non- submi ss ion of required docum ents within th e s ixty (60) clay reglem entary period. The sp o uses were also informed that th e Integra ted Tax SysteJT~-2--------� 203 e~tt'fr ~mo 'fftUij coi~v, C-~ CHRISTINE C. MAZA-GUARIN Executive C lerk of Co urt II Court of Tax Appeals

DECISIO N Page I0 of 49 CTA CRIM Case No. 0-03 1 & 0-032 People vs. Benjamin G. Kintanar computerized record s and certifi cation from reve nu e distri ct offi ce o f Parafiaque do not refl ec t that they had fil ed and paid their taxes for taxa ble years 1999 to 2001 ; that they also fail ed to present original copies of their Inco me Tax Re turn s (ITRs) 1vithin th e sixty (60) day peri od mandated by lmv. On the bas is of the data and doc umentary evid ence gathered, the prosecuti on proceeded to co mpute th e defi ciency in come taxes for taxabl e years 1999, 2000 and 2001 , as follovvs: "a . Fo r taxabl e year 1999, acc used Benjamin G. K intanar, Jr. earned incom e from Forever L iving Products Philippines, Inc. in the am ount of Pl 2, 047,634 .3 0 but did not report Ute sarne to th e prejudice of the government in th e am o unt of P2,32 0, 183.96, exclu sive of interes t, penalties and surcharges. b. For taxabl e yea r 2000 , accused 13 er~j a min G. Kintanar, Jr. ea rn ed inco me fr om Foreve r Li v ing Products Philippines, in c. in th e a mount of Pl 8,73 8,78 0.00 but did not repor t the same to the prejudice of the government in the am o unt of P3,475,090. 86 , exclu sive of interes t, penalti es and surcharges. c. For taxable year 2001 , accused B enj amin G. K intanar, Jr. earned in come fr om Forever Liv ing Produ cts Philippines, In c. in the amount of P27,7 67,655 .58 but did not report the sa me to the prejudice o f tlte government in the am o unt of P5, 172,5 19 .25, ex clusive of interes t, penalties and surcharges." 2. Tes timony of A tt y. Christina C. B arroga Second w itn ess for th e prosecution is A tty. C hri stina C. Barroga, m arried, a resid ent of K ingspoinl S ubdiv ision, B agbag, Novaliches, Q uezon City, th e OI C, Ass istant Distri ct O f fi cer of th e BlR RD O No. 52, Paran aque C it y. A t th e bearing he ld on Jul y I6, 2007, she identifi ed and affirm ed th e truthfulness of th e allegati ons co ntained in th e A ffid av it w hi ch sh~ executed 0 1~ 204 CER'flf.fatC) -&Rk.U!{g.C_oP~V : CHRISTINE C. MAZA-GUARlN Executive Clerk of Court 11 / Court of Tax Appeals

DEC lSlON Page It of 49 CTA CRl!Vl Case No. 0-03 1 & 0-0 32 People vs. Benja111in G. Kintanar Jul y I 0, 200 7 and that th e signature th erein is her signature. 24 A lso, she avowed that the doc uments presented to her during lhe sa id hearing were the very sa m e doc uments she m enti oned in her A ffid av it, \Vhi ch documents \Vere marked as Exhibits "K", "L", " P", "Q", "Y", "AA". 25 In her Affidav it 76 , w itness A lly. Barroga sla ted tha t as the second hi g hest o ffi cia l o f the BIR in the sa id di stri ct, s he is a uth ori zed to issue certifica tions, w hen the R eventt e Dis trict O ffi cer is not avai lable, regarding the status o f taxp aye rs w ithin th e ir area of jurisdi cti on based on th e computeri zed record ke pt ou fi le iu th eir offi ce cull ed fro m the ITS. In line with the sa id a uthority, A lly. B arroga iss ued a Ce rti uca ti01/ 7 on Febru a ry 19, 2007 to the effect th at acc used Benj amin G . Kintanar, .Jr., d id not fil e ln co rn e Tax Return fo r the years 1999, 2000 a nd 2001. S<1 id certi fica tion e ffect ively corrobora tes the Certifi cali on28 issued by th e fo rm er R.evenu e Di s tri ct Offi ce r Carme lita R. Bacod on Septemb er 17, 200 2 in res ponse to lhe reques t o f the T ax Fra ud Di vision refl ected on th e Access Lette r el ated .Jul y 18, 2002. 3. Tes timony of Michael T. Ca jandab T hird wi tness for til e prosec ution M ichael T. Caj and ab, 37 yea rs old , marri ed, res id ent o f Bl ock 12 Lot 16, Casimi ro l 'ow nh orn es, Ph ase IV , Las W Piflas C ity, M etro Manila. 24 TSN dated July IG, 200 7, pp. 5-9 CERTIFIED TRUE COPY: 25 TSN dated Jul y 16, 200 7, pp. 9- 13 26 Docket, pp. 2G2-2 6,1 c::::::-~L....._ 27 Ex hib it " K", Docke t, p. 5119 28 Exhib it " P", Docket, p. 567 CHRlSTINE C. MAZA-GUARIN Executive Clerk of Court II Court of Tax Appeals 205

DECISION Page 12 of 49 CTA CRlM Case No. 0-03 1 & 0-03 2 People vs. Benjamin G. Kintan ar He appeared at th e hearing he ld on A ug ust 22, 200 7 and tes tifi ed that: he is the Comptroller ofFLPPJ; he executed an A t1idavit79 on A ug us t 16, 2007 ; he affirms that the signature therein is his signature. 30 A lso, be confirmed that the documents presented to him durin g th e sa id hea ring were th e very sa me documents he mentioned in his A�Iiclavit, which documents were marked as Exhibits " CC", " DD" , DD - 1", "M", " R" "T", to "T-19" .31 On cross-examination prosecution witness Cajandab confirmed that: the A lph a List marked as Exhibits " DD" and " DD-1 ", whi ch is a reportorial requirement by the BIR containing the total amount of income payments made by their company to their dis tributors or ind ependent contractors and the total arnount of taxes for a particular yea r, was rece ived by the BlR in th e yea r 200 I as ev idenced by the s tamped received; he did not use any doc uments other than the alph a li st and th e bounced checks to dete rmin e th e in co me pay ments mad e to the accused; he did not sign on the checks iss ued to accused B enjamin K intanar and he is just fam ili ar \Vith the execution of these checks and til e an1mmt stated lb ereiu; the difference between the inco me pay ments, stated in his a�1idavil to have been m ade by the company to the accused for 2000, in the amount of E ig hteen Million Seven Hundred Thirty Eight Tho usa nd Seven Hundred E ighty (P 18,73 8,78 0.00), and th e total amount of checks marked as Ex hibits "T" to "T-10", which is on ly Eight Mi lli o n N in e Hundred Twenty Fo ur Thousand Three Hundred Six ty Fo ur and 62/ I 00 (P8,924 ,364.62), could P- 29 Docket, pp. 2 811-28 7 CERTIFIBtJ 'fRU E COPY: 30 T SN dated August 22 , 200 7, pp. 7-9 31 TSN dated Aug ust 22 , 200 7, pp . 9- 14 ~L_ 206 CHRISTINE C. MAZA-GUARlN Executive Clerk of Court II Court of Tax Appeals

DECiSIO N Page 13 of49 CTA CRJM Case No. 0-03 J & 0-032 People vs. Benjamin G. Kintanar be attributed to the IorYo w ithho ldin g lax and the fac t that the re are som e checks that are m iss ing, the checks mi ght have already been dis posed . W itness Caj and ab m erely affirm ed the di1Ierence between the inco me pay m ents, sta ted in hi s affid av it to have been m ade by the com pany to th e acc used fo r 200 1, in the a mo unt of Twenty Seven M ill ion Seven H und red Six ty Seven Th ousand Six Hundred r itty Five and 58/ 100 (P27,767,G55.58), and th e tota l amount of checks m arked as Exhi b its " T- ll " to "T- 19", w hich is onl y Ten .Milli on Two Hundred S ix ty N in e T housa nd l"i ve 1-lundred Fo rty O ne and 80/ 100 (P 10 ,269,54 1.80). 37 � W itness Ca jand ab further tes tified on cross-exam ination that: be only knows that th e ir co mpany iss ued checks to acc used Benj amin K intana r, Jr., th at and he canno t coniirrn w hether these checks were depos ited to his acco unt or were encas hed, th at as fa r as as th e ir company is co ncern ed tltese checks were cleared in the ir bank acco unts.J"'3 In hi s Affid av it,34 w itness Caj and ab stated th at: as th e Comptro ll er of FLPPl, h e is in-ch arge of the acco untin g de par tme nt o f tb e con1pnny; tlp on rece ip t of the DIR Access Letter dated July 19, 2002 requ es ting fo r a certifi cati on as to th e total in co me pay ments ea rn ed by sp o uses B e r~j arnin G. K intanar, Jr. an d G loria V. K intanar [or the ca lendar years 1996 -200 1, he checked th e A lph a Li s t, a repo rto ri a l requireme nt by th e BirZ co nta inin g the tota l amo unt of pay m ents m acl e by the company to it s dis tributors and lo la~ 32 T SN, August 22, 2007 , pp. 111-25 GERfifiEb f i\Ue 6t3PV: 33 TSN , August 22, 2007. pp . 25 -2 8 3~ Docket, pp 2 85-2 87 ~ 207 CHR1STINE C. MAZA-GUARIN Executive Clerk of CoUJi II / Court of Tax Appeals

DEClS lON Page 14 of 49 CTA CR l M Case No _0-03 1 & 0-03 2 c_ People I'S. fl enjalllill Kintanar amount of taxes vv ithhelcl lo r a parti cul ar year, and identi fied th e va ri ous checks to prove the iucome payments made by FLPPT to ncc used; ailer verifying \Vith their comp any's records, he iss ued a Letler-Reply 35 el ated Janu ary 20, 2003 indi catin g th at th e total incon1 e payments made to th e accused, we re as Coll ows: "Appli cab le Year Amount of In co me I A mount of Tax 1999 P ay m ent s Withheld 2000 2001 -- ___12,047'-63 4 .3 0 - --- ____j,204,763.43 18,738, 780.00 I,873,878 .00 27,767,655.58 2,776,765.56 " - - - - - - � ----�-----------~-- � �- 4. Tes timony of Anabelle A lcantara Prosecuti on \Vitness Anabe lle A lca ntara is .cJ7 yea rs old , rnarri ed, residin g at 4 P. Cru z, St. , Barangka lbaba, Mand aluyoug City, Sys tems Analys t at th e BllZ- O ffice or th e Ass istant Co mmi ss io11er for lnform ati on Systems Operations Service. During th e hearing held on November 5, 2007, sl1 e id enti fie d and a ffirm ed th e truthfuln ess of th e all egati ons co nta ined in til e A ITid av it w hi ch she exec uted on October 25, 2007 and that the sigualure th erein is ller sigrwtu re. 36 Also, she acknowlecl gecl that the docum ents presented to her cluriug the sa id hearing were the ve ry sa me documents she mentioned iu her Ailid avi t, whi ch documents were marked as Exhibits "FF", " 171~ - 1 ". She furth er tes tifi ed th at: the Certifi cation37 was signed for Alberto Pio de Roda, Ass istant Commi ssioner u/ - for Informa tion Sys telll s Operation Service, by Victori a C. De Leon; 35 Ex h ib it " 1\11 " , P- 55 I CBRil FH~D 'fR.UE e013V: 36 TSN dated Nove111 ber 5, 2 00 7, pp . 7- 10 ~(_ ;, Exhi bit " FF", P- 7 10 CHRISTINE C. MAZA-GUARIN 208 Executi ve Clerk of Court II .... Court of Tax Appeals

DECISION Page 15 of49 CTA CRlM Case No 0-03 1 & 0-03 2 People vs. Benjamin G. Kintanm� signature app earing above th e name of Mr. de Roda is the sig nat ure of her H ead Revenue Exec utive Assistant, Victoria C. De Leon, she can id en tify the sa id sig nature because M s. De Leon is the signatory of their certifications; the information contained in the Certifica ti on issued by their office were extracted from tile ITS D ataba se..")'8 In her Affidav it, 39 witness A lca ntara stated th at: she is a Systems A nalys t of the BIR and her most important fun c tion is to verify all tile informati on from the ITS based on the request of th e Bl R. and other government agencies; she has pe rsonal know ledge tha t th eir office iss ued a Certification dated September 26, 2007 , concerning a certain taxpayer named Benj ami n G. Kintanar, Jr. , s igned by her !lead Revenu e Executi ve Ass istant Victoria T. De Leon in behalf of Ass istant Commissioner A lberto Pio De R oda which substantiall y states that based on th e ITS accused Benj a min G. Kintanar, Jr. is a registered Professional Tax payer, however, the BJR has no record of accused hav ing fil ed hi s In come Ta x Returns for the years 1999-200 l . 5. Tes timony of Cannencita F lores F ifth w itness for the prosecution is Carmenci ta F lores, 5 1 years old , marri ed, with address at 3 Lualhati St. , A rm el 6 Subd . Sta. Lucia , Pas ig C ity, that she is the Service Ivlana ger of Bank of the Philippine Islands (BP I) North Green hills Branch. A t the hea ring held on Februa ry 6, 2008 , she tes tified that : as the Serv ice Manager, she is th e over-all in- charge of the bank ope rati ons; she wa~ 38 TSN dated Nove mber 5, 2 007, j.Jp. I0- 13 eElt'fiflgb TI':VE 60PV: 39 Do cket, pp. 330-33 1 ~L____ 209 CHRISTINE C MAZA-GUARIN Executive Clerk of Court II /" Court of Tax Appeals

DECISIO N Pa ge 16 of 49 CTA CRLM Case No. 0-031 & 0-032 People vs. B enjamin G. Kintanar co mmand ed to appea r be for e th e co urt for th e certification of th e original and copies of documents pertaining to checks issued by FLPPl , with Account No. 257 1008435, to the accused which were encashed, deposited and credited to th e bank account of th e accused, with Account No. 2575 003 tl89, and to bring bank statem ents of the accused for the years 2000 and 2001 ; she knows the accused Benj amin G. Kintanar, .lr. because he is one of th e c li ents ofth e ir bank ; purs uant to the s ubpoena, she brou ght the bank s tatem ents of the accused for the who le yea r of 2000 and 2001. The bank statements of the accused for 2000 and 2001 were marked as Exhibits " GG" and "HI-I", respectively .40 On February 20, 2008 , prosecution witness Carmencila Flores \va s ca ll ed to th e witness stand for th e continuation of her direc t examination . She id entified and affirmed that til e affidavit shown to her is the sam e Affid av it v/ hi ch she exec uted on February 15, 2008 and that th e sig nature th erein is her signature.'11 A lso, she avowed the ve racity of her A Hidavit and affirmed that th e docum ents presented to her durin g th e said hea ring were th e very same doc uments s he mentioned iu her Affida vit, which documents were marked as Exhibits "GG" and "l-Ui.".'1/ Wi tn ess F lores further tes tified th at: the checks (Exhibits " T" to "T-19) shown to her during th e sa id hea rin g were th e very sam e checks she m entioned iu her a [(ida vit that were e ncas hed or deposited under th e account name of the accused; based on th e checks furnish ed by th e prosec ution, she checked their hea d offic e record s to verify the details of th~- 40 TSN dated February 6, 2008 , pp. 7- 16 CERT~ rtBh PfRUB COPY: 4 1 TSN el ated February 20, 2008 , pp. 9�� 1I 42 TSN dated feb ruary 20, 2008 , pp . ll - 12 c...? 6 ' L 210 CHRISTINE C. MAZA-GUARIN Executive Clerk of Court ll Court of Tax Appeals

DEC ISION Pa ge 17 of49 CTA CRJM Case No. 0-03 1 & 0-032 People FS. B enjamin G. Kintanar said checks against the bank sta teme nts an d also the co rrespondin g de pos it slip , if there are deposits mad e.'13 On cross-examination, w itness Carmencita F lores s ta ted that: she was assi gned as Serv ice Manager in No rth G reenhill s Branch on April 16, 2003; she was not yet assigned in th e said branch w hen checks marked as Exhibits " T" and " T- 19" were encas hed and deposited and her ve rifi cation is based on the documents she requested fi�orn their hea d office; she was not the one who prepared the bank state ments of accused marked as Exhibits " GG" and "HH ", it is the ir head ofiice records secti on which prepares the bank statem ents of all t11e c11.ents.<14 On re-d irect exa min ati on, \Vitness Flores dec lared th at: the docum ents she id entified as the bank s tatements of the accu sed are actually bank records furnish ed to her by their hea d office. Wh en asked w hat docum entary procedure or steps she mad e to verify the correctness or acc uracy of the entries appear ing in the dep os it co lumn of th e bank s tatements, s he respond ed " Based on the checks that yo u jim1 ished me" and that she requ es ted from their hea d ofll.ce copi es of the checks, which were furni shed to her by the prosecuti on during th e prev ious hearing, the deposit slip, mi cro film copi es of th ose r documents for verifica ti on a nd co unterchecks said doc uments wi th the bank statements. 45 43 TSN da ted February 20, 2008 , pp . 9-20 CER.'tlf>'!Bb 'fRUe COPY: 44 TSN dated Febmary 20, 2008 , pp. 20-3 I ~C- 4 TSN dated F e br uary 20, 2008, pp . 32 -36 CHRISTINE C. MAZA-GUARIN ' Ex ecutive Clerk of CoWi U 211 CoUI1 of Tax Appc;Ws

DEClSION Page 18 of 49 CTA CRIM Case No. 0-031 & 0-0 32 People vs. Benjamin C. Kintanar In her Affid av it,46 \Vitn ess Carmencita Flores swo re that: s he is the Service Manager of BPI North Greenhills Branch ; she came to know Mr. Ber~amin G. Kintanar, Jr. as a depositor of their bran ch ; sh e confirms that the checks marked as Exhibit " T" to " T-19", which were encashed or deposited, appears in the bank statements. 6.J~es_rl_n10I1Y of RQ ill~O NaranjQ Last witness for the prosec ution Romeo Naranjo is 57 years old , married, a res id ent of 307-C Bonaventure Gardens , P. Osmena St. Makati C ity. He is the Revenue District Officer assigned at the Revenue District Office No. 40 , Cubao, Quezon City. Prosecution wit11ess Na ranjo was presented on th e witness s tand on June 11 , 2008 . H e identified and affinned that the A ffidavit shown to him is the very same affidavit he executed on May 27, 2008 , and that the signature th erein is his signature. L ikew ise, he verified that: the docume nts presented to him during th e said hearing were th e very same documents he mentioned in hi s Affidavit, which documents were marked as Exhibits "S", "S- 1", "S-2" and " Q- 1"; that the signature in Exhibit " S", appearing above the name Romeo Naranjo, is hi s signature. Witness Naranjo alleged that he is familiar \Vith the signature of Hilda G. Giron, thu s, be af1inned that the si gnature in Exhibits "S-1 " and "S-2", appearing above the nam e Hilda G. Giron, is th e signature of ~- 46 Docket, pp. 35 1-354 CERTIFIED l~RUE COPY: C-~W{__ 212 CHRJSTINE C. MAZA�GUARIN Executive Clerk of Court 11 Court of Tax Appeals

.. Page 19 of49 DECiSION CTA CRlM Case No . 0-031 & 0-0 32 People vs. Benjamin C. Kintanar Ms. G iron. F inally, he affirm ed and confirmed the verac ity of the contents of his Af1id avit. 47 On cross-examina tion, w itness Naranjo tes tified that: the verification of record s made by him was limited to th e records of BlR Pas ig at that tim e, thu s, it is possible tha t the subject taxpaye r is regis tered in ano ther dis trict, that the reco rds of a taxpaye r can be found in anoth er dis tri ct oth er tha n Pasig vvhen returns were fil ed with the o ther di s tricts.118 In hi s A ffidavit, 49 w itness Romeo Na ranj o dec lared that : he is th e R evenu e Distri c t Offic er ass igned at Revenue Distri ct Office No . 40, C ubao; pri or to hi s ass ignment in the R evenue Dis tri ct 01lice of C ubao, Q uezon City, he was ass ign ed a t th e Reve nue Di stri ct Office No . 43, Pasig C ity; as the high es t offi cial in the Re venu e District Office No. 43 of Fasig C ity, h e is authori zed to iss ue certifi ca ti ons regardin g the status of taxpayers �w ithin th e ir area of jurisdicti on based on the BIR-ITS. 1-Ie iss ued a Cer!ili ca ti on on A ugust 19, 200 2 (pre- marked as Exhibits "S", "S-l " and "S-2"), w hich esse nti a ll y states tha t acc used Benj arnin G. K inl anar aucl spou se G lo ria V. K intanar have not fil ed any return in th eir oHice and that they nre not reg istered in their di stri ct. On June 12, 2008 , the prosecution made a formal offer of documentary ev id ence as represented b y the followin g mnrkecl exhibits. ____ Exl~~QL~~---- _______ . _ ���-��----~- D escriptio11 ________ "A" to "A- Letter of A uthority No . 0002966 3 dated March 8, 200 3 1 / --;~ : 47 TSN, Jun e II , 2008, pp . 6- 10 eERriFtEB TRUE eOPY: 48 TSN, Jun e ll ,2008,pp. l0l 3 49 D ocke t, pp . 394-395 c__~L 213 CHRISTINE C. MA ZA-GUARIN Executive Clerk c,f Court II " Court of Tax Appeals

DEClS lON Page 20 of 49 CTA CRlM Case No. 0-03 I & 0-032 Peop le vs. Benjamin G. Kinlanar ---- ------- ------- -- --------- - - ---- - 2" - - - -"-A-- 3 " Signature_of Accused ----� " 13 " Second Reques t for Presentati on of Record s el ated April '' C" 2 1,2003 ---- Final No tice el ated May 5, 2003 " D" to " D- . ---------�- 2" S ubp oena Duces ]'ec wn dated Juii C II , 2003 "E" to "E- Preliminary Ass essment No tice - - - -l "- - - - - - - - - - - - - - - - - - - -�� -- --- - - �--�---- - - - - - - - - - � " E-2" to Attachm ents to th e Preliminary Assessment No ti ce "E-4" containing tb e D etail s of D iscrepancies for Taxabl e "r- - - � - - - - - - Years 1999 , 2000, 200 I and 2002 " F" to Form al Letter of Demand dated fe bru ary 26, 2004 2" �- ------~ - - - - - - - - - - - - - - - - - - - - - - �--- "F-3" to A ttachm en ts to the Form al Letter of Dern and conta ining " F- 5" th e Detai ls of Di screpancies fo r Taxab le Y ears 1999 , - --- �-- -- ------ 2000 , 200 1 and 2002 -------- --- - - - - - - ------- ----------- ------------- " F-G" & BIR Post O ffi ce Registry Receip t el ated August 2, 2004 " F7" and the Signature of th e recipi ent " G" to " G- Assessment No tices Nos . E S-IT- 1999-0083, ES -VAT- 7" 1999-0084, E S-IT-2000-0085 , ES -VAT-2000-0086, ES - "II" to "H - IT-200 l-0087, ES - VAT-200 1-0088 , ES-IT-2002-0089 3" and ES-VAT-2002-0090 Lelter of the accused dated A ugust 3 J, 2004 "I" Letter dated Septemb er 30, 2004 -�- i -- "-l----l -"----- _S ig nat~re _o�.Eec ipi~~~~--- ___ - --- - - - - - - - - - - - - " .J " to ".J-2" Fin al decision on Di sputed Assess ment el ated December 13 , 2004 "J-3" to "J- Attachments to !he Final D ecision 0 11 D isputed tl" Assessment denominated as Anu ex " A" " J-5" Signa ture of r_ecipient _lQ.QZ " 1( ' ' ------ Ce rti fica ti o~~d ated February .~ 9, -- ----------- -~ " L" Certifi cate of Registrati on dated Janu ary l , 199G -~--- -"-M--"---- __1-e tter=~~eJ? l;td a t~d Jan~ary ~0 , 2003 ____________ " N" to " N- Letter dated Jun e 3, 2005 iss ued by G uill erm o C. ! 10" Parayno, Co mmi ssioner of Internal Revenu e add ressed . to Ratti Gonzales, Secretary of Ju sti ce together with --- - -- a tta ~ lli_11g J~ ~l t-_A ffijav it d a te~ !J~t ~ _\2 005 - "N - 11 " Signature of Revenu e Offi cer Sitnp li cio V. Caban tac, Jr. �- -- "N - 12" _s ig1_!a tu~�e o( R~y e~l~,-~_Qffi ~~L-A t~~lis> Ag_~~~!in Zamora _ ---� ---�---- -~ig~1 ature__?L~~.Y~~~~e__9 ffi ~e r�j~_t~ ~~ g y"- !E:..___ __ ,--- " N-1 3" _ �----- -- ��- - " 0 " to " 0 - Rep ly-A ffid av it dated A ugust 1, 2005 - --3" --- -- . -- - - -- ---- - - - - - --- - . -- -----~----- " 0-4" to S ignatures o r Sirnpli cio V. Ca b a~~~c , , }!~~.Aure li o �~ eR~... ��-~ -� {__ 214 Cl:-tRlsri NE C. MAZA-GUARIN Ext:mllive Clel'k of Court 11 Court of Tax Appeals

DECISION CTA CR!M Case No. 0-03 1 & 0-032 P eople vs. Benjamin G. Kintanar Page 21 of49 _ _ _ _ _ ___________ ----~---~ ..._ -~------------- "0 -6" Agustin T. Zamora and Sixto C. Dy, Jr. "P" Certificati on elated September 1 7, 2002 "Q" to "Q- Access Letters dated Jul y 18, 200 2 1" "R" _6ccess _Le~e~~~a te_~]uly 1 9.'_~ 00l____ --- ---------- ----- ''S" Ce rtifi ca ti on of Revenue Distri ct Offi cer Romeo Naranj o .s?! "S- 1" Gi!d a_g~ Hira r~---- ---------- Ce rti fic..?J:io n - "S-2" Certifi cati on of Gilda G. Hirang "T" to "T- Bank of the Philippine Island s Checks 19" - - --- - - - - - - - - -----------~- ------- - - - - - - -- - - - - - - ------ - - - - - - - - - - - - - - "' 1" " " Bank of the Philippine Islands Check No. 00011 29896 elated Janu ary 15, 2000 "T- 1" Bank of the Philippine Islands Check No. 00011 39852 elated Febru ary 15, 2000 "T-2" Bank of the Philippine Island s Check No. 00011 7 141 6 - - - -� _qate d~prll 15, 2000 - - - - - - ~~------------- "T-3" Bank of th e Philippine Island s Check No. 00011 83948 dated May 15, 2000 "T-4" Bank of the Philippine Islands Check No. 00011 94458 dated Jun e 15,2000 ---~-- -------- --~---- -------------------- "T- 5" Bank of the Philippine Island s Check No. 0001 205 173 - - - - -- - - j~t e d_ Ju}L_!_S_,__ ~_QQQ____ ---- ---- "T-6" Bank of the Philippin e Island s Check No. 0001 2 16LI84 dated A ugust 15, 2000 "T-7" Bank of the Philippine Island s Check No. 0001 229757 j ated Sep~emb e_r 15, 2000 �-------- ----~--- -- "T- 8" Bank of the Philippine Island s Check No. 0001 244 172 dated Octo ber 15, 2000 ----�--- -�---�- - -�-- - - - - - - � "T-9" Bank o f the Philippine Island s Check No . 0001 258722 dated Nove mber 15, 2000 "T-10" Bank of the Philippine Island s Check No. 0001 2736 16 - - -- -�--�--~----- _Si a t ~_S! D_~~ mQ~!:....! 5__,__2_Q_Q_Q_________ "T- 1l " Bank of the Philippine Island s Check No. 0001 289 129 ------------� ~_teqlanuary 1 5~1_Q_Q_l________ �---------�--- - -- "T-1 2" Bank of the Philippine Island s Check No. 000130 5 I 18 elated February 15, 200 I "T- 13" Bank of fhe Philippine Island s Check No. 0001 32 162 1 - ---�----- d atecl lVl ar~_l_J 5, 2Q OI ��---�---- --� "T- 1<I" Bank of th e Philippine Island s Check No. 0001 33 885 4 d ate_9_6p~il l 2_o___?_OO 1 ____________ -----�~- "'1'-1 5" Bank o f the Philippiue Islands Check No. 0001 374883 dated June 15, 200 I "T- 16" Bank of the Philippine Island s Check No. 0001411 323 _1 _ .._ __1 ,\ r _ _ _ _ �. 1 "'"\ n f\ 1 ~ e!R.TIF'iEi:JIRt1 cL:OPY: ~(__ CHRISTfNE C. MAZA-GUARIN 215 Executi ve Clerk of Court II Court of Tax Appeals

DECISION Page 22 of49 CTA CRIM Case No. 0-03 l & 0-032 People vs. Benjamin G. Kintanar " T-1 7" Bank o f th e Philippine Is lands C heck N o. 0001 42822 1 dated September 15, 2001 _________ " T-1 8" Bank of the Philippine l slands C heck N o. 0001445 125 dated October 15, 2 001 "T- 19" Bank of the Philippine Island s Check No. 000146 125 1 dated Novemb er 15,2 001 - --~- -- - !- - - - - - � - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - "U" Service Record el ated March 9, 200 7 "V " L etter el ated Decemb er 12, 2 00 2 '' W " ------�-��- A ffid av it of Plaintiff' s w itn ess, S impli cio V. Cabantac , " W- 1" Jr. "X" to "X- __� i gr~~tw~~f_�itEEU ci ()__y. Ca~Cl}~ta cJi� . _ �----� ____ 2" A ffid av it of Pl a intiff' s w itn ess, C hris tin a C. Barroga "X-3" ~i gn~.t~Ire of q u�is tina C . B arro_&?_ __ _ _ "Y" Revenu e Trave l Ass ignment O rd er No. 5-2006 "Z" Service Record dated June 5, 2007 "AA" S tatem ent o[ Ac tu al Duties and R esponsibilities of Chri stina C. Barroga "BB " A ffid avit of Plaintif f' s w itness, Micha e l T. Cajandab " BD - 1" Sig nature ofMi chae l T. C aj ~nd ~Q____ - - - - - - � ____ "CC" Certifica ti on dated July 17, 200 7 "DD" Portion o f the year 2000 Alpha List indica ting the name of Acc used --- ------- - �-~-------------- " DD - 1" Porti on of th e year 2001 A lpha Li st indi ca tin g th e na me of Acc used "EE" A ffid avit ofPlaintiff s w itness A nabell e A lcantara "EE-l " I S ignature of A nabe ll e Al canta ra _ _"YF" __ Cet~ific:a t0n da_led S~ptemb et~ 26, 20_Q7 " FF-1 " Signature of A lberto A. Pi o De Roda __ " GG " Bank Statem ents of th e Accused fr om Janu ary to December 2000 "I-11-l" Bank Statements o f th e Accused fr om January to D ecember 200 I "ll" A ffid avit of Plaintiff' s witness Carrnencita Flores " 11-1 " I Signature o f Carmencita Flores "JJ " I A ffid avit ofPl ainti ff's w itness R om eo E. Naranj o -------)/�- ___".TL-l:____ j_�jg~~t~E~ ofT~~Eeo ~..:_Naranj_~ ___ __ etKttPmo TiltJ ~ eoPY : ~{_ CHfUSTINE C. MAZA-GUARIN Executive Clerk of Court II Court o f Tax Appeals 216

'. Page 23 of 49 DECI SION CTA CRlM Case No_ 0-0 3 1 & 0-032 P eop7e l'S. Benjamin G. Kintanar Evidence {or til e De{ense On the oth er hand , th e defense presented three (3) w itu esses, the acc used himself, Mr. Benj amin G. Kintanar, Ms. Jennifer l(. A baci, and Ms. Marina C. Mend oza. 1. Tes timony of Accused Benj amin G. K intanar, Jr. first �witn ess for th e prosecuti on, accused hirn se l!~ Benjarnin G. Kintanar, Jr. , of legal age, marri ed, res id ent of l45 -A Saint Francis Street, Orand o, Pasig C it y . He appeared at the hearin g held ou Novemb er 12, 2008 and tes tifi ed on direct examination that: he executed an Affidavit50 ou November 7, 200 8 and th ereby affirm th e contents of th e sa id A ffida vit; th e signature therein is hi s signature; be is an independ ent di stributor of hea lth and fitness produ cts of FLPPl sin ce th e mid- 90s but between th e 2002 to middl e o f 200 8 he left th e said cornpany but went back on Septemb er 200 8. Also, be confinned th at the documents presented to hirn during th e said hearin g were th e very sam e doc uments he mentioned in his A fTid av it , which doc ument s were marked as Exhib its " 1" to " 15'' .51 In hi s A ffid avit, acc used dec lared that: he, toge ther \Vith hi s �wife, fil ed their ITRs for the years 2000 and 200 1 (Exhibits "6" and " I 1") w ith the BIR RDO No. 40 ; th at the said lTR was fil ed by Ms. Marina Mend oza, who used to be connected with the BIR, because he and his wife were not very aware and familiar with th e process or filin g the ITR and corn pl yin g with the tax laYvs an ~ 50 Docket, PP- 896-902 CERTIFIECD - iR~~E ~ CPPV: 51 TSN, November 12,2 008 , PP - 4- 10 CHRISTrN E C. MAZA-GU ARIN 217 Ex.:cuti ve C lerk of Col111 II / Court of Tax Appeals

DE CJSI ON Page 24 of 49 CT A CRltvJ Case No. 0-031 & 0-032 People \'S. Benjamin G. Kintanar reg ul atio ns; that hi s total ea rned income for the yea r 2000 am ounted to P 11 ,053 ,918 .61 whil e hi s lax clue for the year 2000 amoun ted to Pl , l0 5,391.88 (Exhibit " 6-C"); that the sa id income tax clue was withheld [rom hi s income for th e yea r 2000 by hi s empl oyer FLP PI as ev id enced by th e copi es of quarterl y Certi fica tes of C reditable Tax Withheld at Source iss ued by FLPPI (Exhibits "7" to " 10" ) and was fil ed w ith 131R R.D O No . Ll() o n March 23,2 001 (Exhibits "7 -C", " 8-C", " 9-C" and " 10-C"); tbHt for the year 2001 , acc used likewise tes tifi ed that he fil ed hi s IT R fo r th e year 200 I w ith th e ass istance o f M s. Marina Mendoza beca use of th e sa me reasons and that his to![! I earned incom e � for the year 2001 amo unted loP 14,404 ,899.23 , w hile his tax du e for the year 2001 a mo u11tecl to Pl ,ti40 ,LI92 .32 (Exl1ibit " 11 -C"); th e acc used pointed o ut that lle paid his lax clu e since, as expl ained to him by Ms. Marina M endo za, th e tax w ithheld by FL PPl fro m hi s earnin gs were deem ed pay rn ent of hi s tax, as evid enced by til e Certifi ca tes oC Creditable Ta x Withheld a t So m ce (Ex hibits " 12" to " l 5") iss ued on a qu arterl y bas is by hi s e1npl oye r FL PPI ; that acc used believe that the said certificates was fil ed by FLPPJ \Vith the BlR on A pril 5, 2002 as evi den ced by the s tamp ed rece ived by the DJR (Exhibits " J2-C", " 13- C", " 14-C" and " I5-C" ); that he engaged th e se rv ices o f J\!l s. Marina Mend oza for a considera ti o n as ev id enced by til e checks he iss ued as payme ut (Ex hibits "3" and "5"). On c ross ex am iu at i o n 5 ncc t1 secl B en-j ami n K inlanar. Jr. s ta le d th at: lJ e is J ' o ne of th e to p I0 deal e rs of FLPPI , and as such rece ive d co1nmiss ion in cmn e~ 52 TSN, Novembe r J2, 2008, pp: I0-33 CERTIFIBJJ fRU E COPY: C--~ ~ �...c..� .--[/__ 218 CHRISTINE C. MAZA-GUARIN Executive Clerk of Court ll Cowi of Tax Appeals

.. Page 25 of49 D EC I SI O N CTA CRl M Case No. 0-03 1 & 0-0.3 2 People vs. Benjamin G. Kintanar fo r taxabl e yea rs 2000 and 200 1; chec ks marked a Exhibits "T" to "T- 18" are those he recei ved h om FLPPl and cle<1red by BPI North G reenhills Branch, hi s Acco unt N umb e r in BPI is 1070 034 89; he received the said checks from Mi chael Cajand ab, Acco untant o f FLPP! , and confirmed th a t for 2000 and 2001 he received commi ss io n income in the total <1m ouut of P1 8,738,780 and P27,767,655.58 , resp ec ti ve ly. F ur ther, accu sed tes tified that: he is a regis tered taxpayer in RJ)O P asig sin ce 1997 and for the purpose of p reparing and filin g of hi s lT R for 2000 and 200 1, he hired Ms. Marina Mendoza but the signatures in the IT Rs are his; he provid ed all the details including personal circ ums tan ces, but when he signed th e IT R be fail ed to read a ll the co ntents; he p aid his in co me tax with l11 e BlR for 200 0 and 2001 , the tax clu e has been paid by offse tting it w ith the creditable tax vvitbh eld at so urce; he did not personally fil e his ITR and did not verify from the BIR if his IT Rs were ac tu ally fil ed, but he obtained copi es of the ITRs stamped rece ived by th e BIR. A lso, during the cross-examinati on acc used confirmed tll at: he had been a res id ent o f Orand o, Pas ig City fro m J972 to 1997 , the n fi�om 1997 he transferred to !V! ervill e, Pa raftaqu e up to 200 3 or 2004 , fr om 2004 be went back to Pas ig up to th e present ; he ag reed tha t, s upp osedl y, hi s TTR should have been fil ed where be is registered; no IT Rs \Vere actu ally fil ed in Pas ig and he did not verif�y from any dis trict offices of the BlR if hi s IT R for 2001 and 2002 \verc actu all y fil ed; hi s !TRs lo r 2000 and 200 I re ll ected an address in La gro Subdi v ision, Novali ches, Q uezo n C it y; he has never li ved in sa id address. CERTIF~ IED L TRU. E C.O_PY : ~ / _. 219 CHIUSTINE C. MAZA-GUARIN Executi ve Clerk of Court 11 Court of Tax Appeals

DECl SJON Page 26 of 49 CTA CRIIvf Case No. 0-03 I & 0-03 2 People \'S. Be1!jamin G. Kintanar Counse l for th e prosec uti on emphas ized that th e lTRs of accused for 2000 a nd 2001 bore the s tamp ofRDO, C ubao. On re-direct examinati on accused Benjamin Kintanar, Jr. explained that: he did not veri fy w heth er th e lTRs were actually fil ed fo r th ose years becau se M s. M endo za is a very close ii�iend of hi s sis ter; the Certificates of C reditable Tax Withhe ld at So urce were iss ued by Ms. Natali a Go lez of FLPPI. 53 2 . Second witness for the defense Jennifer K. A baci The seco nd \Vitn ess for th e de fense, ave rred in her affid av it th at: th e accu sed is h er brother; 11wt she personally kno ws that til e accused fil ed his ITRs for the year 2000 and 200 J; tha t s he likewise en gaged the secvices of M s . Marina M end oza, w ho used to wo rk in th e Bl R, to ass is t her, togeth er w ith his brother and sister, in the filin g of the ir lTRs; To corroborate th e tes tim ony o f acc used, th e second w itn ess Jennifer A baci , the acc used 's sis te r, Curther a lleged that she knows M s. Marina Ivlendoza beca use M s. Mendoza is th e moth er o f her fri end , w ho a lso happe ns to be It er downliue in FLP PI ; that in one of Iter conversa ti on wi th her friend, they disc ussed the filin g of the ir lTRs and the latter told her that sh e need not worry about it beca use h er mother wa s an accountant and wo rkin g in B!R; that eventuall y, Ivls. Jenni fer Aba d met up wi th M s. Marina Tvlendoza and they agreed th at th e latter w ill prepare and fil e the ITR.s of Ms. A baci and her husband ; that it was w itness Jennifer A bad 'vho introduced Ll1e accused and anoth er s is ter to M s . Marina Mendoza for the same purpose, that is, for th e / /~ 53 TSN , November 12 , 2008 , pp. 34-37 CERTIFIED TRUE COPY: 220 ~ CHRISTINE C. MAZA-GUARIN Executive Clerk of Court II Court of Tax Appeals

.'� Page 27 of 49 DEC IS IO N CTA CRIM Case No_ 0-0 3 1 & 0-0 32 People vs_Benjamin C. Kintanar preparati on and filin g of th eir lTRs from 1998 ; th at fro m 1998 to 2002, she and her siblings engaged the services of M s. M arina M endoza and it w as the latter who wo uld remind th em of th e filin g of their IT R s; that since communication between her and Ms . M arin a M end oza is more open a nd access ibl e, Ms. M end oza wo ulei inform her o [ acc used 's filing, the doc uments h e sh ould g ive and hi s pay ment fo r he r; th at in 200 2, Ms. Marin a M end oza stopp ed do in g the preparation and filin g of tll e ir LTH. s s in ce the BIR s tarted in ves ti ga ting o tl his broth er, th e acc used here in. 3. Witness 1Vls. Marina 1Vledoza The third and las t witn ess for the defense, M s. Marina Mend oza , is 68, w id owed, and a res ident of LJLJ5 Ca mi a St. , M ansa nas Subdi v ision, TVIaril ao, Bulaca n. Witn ess Ms. Mend oza, w ho turn ed out lo be a hos til e w itness , 111 substance, tes tifi ed tha t: sh e came to k now the acc used B e 1~j c.unin G. K inta nar, Jr. around 20 00 , thru her daughter Jennifer Mend oza De los Santos, w ho happ ens to know the sis ter o f acc used, Jennifer A bad, as they are "nwg - kumare "; Jenni fe r A baci , s ister of acc used, rec ruit ed h er daughter to J Olll FLPPl around 1997 to 1999; th at th ere was a titn e wh en th e s ister o f th e acc used went to their h ouse and durin g their con versa ti on, she adv ised Ms. A bad on how to prepare an lTR; th at M s. A baci and th e accused \Vent to their h ouse and asked h er for ad vice w ith res pec t to preparing his IT R ; tha t she told accused to sec ure a 13HZ l;orrn 23 16 (W2) from f<' LPPI if he will prepare hi s -2-- 221 CERTIFIED TRUE COPY: ~L_ CHRISTINE C. MAZA-GUARIN Executi ve Clerk of Co urt II Court of Tax Appeals

' '' ' Page 28 of 49 DEClS lON CTA CRJM Case No _0-031 & 0-032 P eople vs_ B enjamin G. Kintanar ITR, w hi ch the accused sho wed to her; she does not reme mbe r exac tl y w hen the acc used asked for consultation, its either 1999 or 2000 Ms. Mendoza clarified and reiterated that she d icl not rece1ve any co mpensation for the advice she prov id ed the accused and her sister; she recalls havin g received a check iss ued in her name from bo th acc used and his sister, but th e sa id checks she received from accused are installm ent payments for j ewe lries that the accused purchased from her sou-in-law, Mr. Dong Morenos ; she co nfirm ed that th e checks shovm to her by counsel were lil e checks she received from s iblings K inlanar. Ms . !Vfendoza likewise denied, when presented w ith Exhibits "6" and " 11 ", th at she was lhe one -vvho prepared and fil ed the ITR_s of th e accused for the years 2000 and 200 1, respecti vely; she adrnilled lhal she was a former empl oyee of 131R and worked as a TZ.evenu e Enforcem ent Officer but she vehem entl y deni ed that she is acqt~ ainted to certain Revenue D is trict 0�1icers w ithin lh e Philippines. Las tl y, .tvls. Ma rina Men doza vehemently denied involvement in the filiug of ll1e ITR of acc used Be1~jamin G. K iutanar, .Jr. THE ISSUE WHETHER OR NOT ACCUSED BENJAMIN G. KlNTANAR IS LIABLE FOR VIOLATION OF SECTION 255 OF T I-lE 1997 NATIONAL INTERNAL REVENUE CODE, AS AMENDED. ~ ~ C~RTIF'IE:D TRUE COPY: ~ CHRISTJNE C. MAZA-GUARJN Executive Clerk of Court II Court of Tax Appeals 222

DE CJS lO N Page 29 of 49 CTA CRlM Case No. 0-03 1 & 0-032 P eople vs. Benjamin G. Kintanur TH E RULING OF THE CO URT Acc used, Benj amin G. Kintanar, is charged before this Co urt in these two (2) conso lid ated cases for fa ilure to (iJ e his In co me Tax Returns (ITRs) for taxable years 2000 and 200 I on hi s taxa ble in co me in th e es tim ated amounts o f P 3,475 ,090 .64 and P5 , 175,242. 12, 51 res pecti ve ly, exclu sive of pe na lti es, ' surcharges and interes t, in v iolation of the first paragraph o f .Section 255 of the Nationa l 117lernal R evenue Code (NJR C) of 199 7, as amend ed, which rea ds as foll ows : "SEC 255. Failure to Fi fe R etum, Supply Correct and Accumte h ?fon notion, Pay J'ax, Withhold mzd Remit 1ax and R efund Excess Taxes Withheld on Compensation . - A n y per son r eq ui red und er this C od e or lJy rul es a utl r egulati ons promulga ted ther eund er to pay any tax, m ake a re t unt , keep any record , or supp ly co rrec t and acc urate information, w ho w illfull y fails to pay such tax, ma ke s uch r eturn, kee p such reco rd , or supp ly such correct and acc mate informati on, or withh old or remit taxes w ithheld on comp ensati on, a t th e tim e or tim es r equired by law or r ules a nd r eg ulations shall , iu addition to other penalti es prov ided by law, up on convicti on th ereof, be punished by a fin e of not less th an Te n th ousa nd pesos (PJ0,00 0) and suffer imprisonment of not Jess than one (1 ) year bttt not more than ten ( 10) years. " (emphas is supp lied). Sectiou 2 55 co ntemp lates !o ur (4) dilTerent situations, each of whi ch constitutes a failure to perform , ill a timely manner, an obligation imposed by th e NJR C o.f 199 7, os amended, namely: 1) to pay es tim ated tax or ta xes; 2) to make (fi le) a return; 3) to keep records; and J ~__/" 51Til e CO RR ECT EST IMATED AMOUN T is "5, 172,5 19.25". Note th at in Ex hibit " J-tl " th e l'otal lnc:ome Tax S'Lill Due fi'O JJJ Be nja1nin Ki11 la nar to r th e taxa ble yea r 200 I is "5, 172,5 19. 25" and NOT "5, 175,2,12 .1 2" as erroneo usly provi ded for in th e Jn fo n11 atio JJ fi led by the Sta le Prosec utor. "Ex hi bit " J-11" is Ann ex " A " of l11 e Final Decision on Disputed Assessmel1l iss ued by Jose Ma ri o C. Uu iia g, Depu ty Commi ss ioner o r t he I.ega l a nd In spec ti on c.; roup or the BelR~. ll.T I ~-l s~ R <i"B U E COPY . � 223 CHRISTINE c. MAZA-GUARIN E)(eCUlive Clerk of Court ll CoUli of Tax Appeals

I� DECI SLON CTA CRJM Case No. 0-0J I & 0-032 ' People I'S. Benjamin G. Kintanar 4) to suppl y informati on. Page 30 of 49 T o es tablish the offense of failure to m ake or llle a re turn, the prosecuti on mu s t prove three (3 ) essentia I el em ents beyond reasonabl e do ubt, to w it : 1) tll atthe acc used \Vas a person required to m ake or llle a return ; 2) tha t the acCLLsed fa il ed to m ake or fil e a re turn a t the lime required by law; a nd 3) tha t the failure to m ake or 1ile Fl return ,,vas will [ul. It is bas ic that in a ll crimin a l prosecution s, th e burd en o f proof is on th e prosec ution to es tablish the g uilt of the acc used beyond reasona ble doubt. It has th e duty to prove each and every e lem ent o f th e crirn e c harged in th e informati on to w Mra nt a llndiu g of g uilt for the said crime or for any other crim e necessa ril y inc lud ed therein .55 11u accused is required to mal< e or Ole a return As regard s the firs t elem ent, ac cu sed admitted tb at he is a reg is tered taxpayer w ith T ax Id entiJ'i cati on N umber 186-677 -853 and that he earns inco me h om selling Forever L iving produc ts. T he undisputed fac ts are admitted in the Pre-T ri al Ord er el ated July 4, 200 7,56 the re leva nt porti ons o h vhi ch state: "11 . S tatem ent of the l'ac ts A. A dmitted l . Acc used D e r~j a min Gatp aya t K intan ar, Jr. a.k.a . .lun Kintanar, F ilipin o c iti zen, o r lega l age, ~ 55 Leo nil a 13atul aJI OII vs. Peop le o f th e Philipp ines, 502 SCRA 35, c iti11g Peopl e vs. Ca in gat, 376 SC RA ~68 7 � 3,9G CERTIFIE Dc TR. UE_ CO~ PY �� Docke t, pp. 246-25 4 224 CHRISTINE C. MAZA-GUARIN Executive Clerk of Court ll Cour1 of Tax Appeals

D ECISION Page 3 1 of 49 CTA CRlM Case No 0-03 l & 0-032 People vs. Benjamin C. Kintana,. marri ed to G lori a V . Kintanar, and a res ident of the Philippines, is a registered taxpayer w ith Tax ldeuti1i catiou N umber 186-677 -853. 2. O n A ug us t 3 1, 2004, accused sent a Protes t Le tter togethe r with a photocopy of his incom e tax return s for years 2000 to 2 00 2." Iu relation lo hi s duly to pay taxes to the na tional gov ernment, he is likew ise required to make or 1ile an inco me tax retum ari sing fi�om his supposed in co me for taxa ble years 2000 and 200 I . Acc used K inta nar's duly to make/ fi le a reltrrn is specifica lly menti oned in Sec tions 5 I and 74 of the NJR C of 199 7, as amended, th e p ert:i11 ent porti ons ohvhi ch rea d : "SEC. 5 1. Individu al Re turn . - (A) lZequirements. - (1 ) Excep t as prov id ed iu para g raph (2) of thi s Subsecti on, the follo w in g individuals arc required to iil e a n incom e tax return: (a) Evuy Filipino citize n r�csiding in the Philippines; XXX XXX XXX (LI) T he inco me tax return sha ll be fil ed in dupli ca te by the following persons: (a) A resident citizen - on his income from all sources ; XXX XXX XXX "SEC. 74. Dec larati on of Inco me T ax for individu als. - (A) In Genera l. -- Except as otherw ise p rov ided in thi s Sec ti on, eve ry individual subj ect to incom e tax under Sec tions 24 and 25(A) of this Tille, who is receiving self- empl oy ment in co me, w hether it co nstitutes th e so le source o f hi s in come or in co mbin ati on \Vith sa lari etE~Br1'�R8!!:1tt!OE.Y: ~~ 225 CHRISTINE C. MAZA-GUARIN Executi ve Clerk of Court II Court o f Tax Appeals

'~. Page 32 of 49 DECISION CTA CRIM Case No. 0-03 1 & 0-032 People vs. Benjamin G. Kintanar fi xed or determin able income, sh a ll m ake a nd fil e a d eclaration of his es tim a ted incom e fo r th e cunent taxable year on or b efo1�e A pril 15 of th e sa m e taxa bl e yea r. In general, self-employment income consists o f the earnings derived by the indiv idual hom the practice of profess ion or condu ct of trade or business carried on by him as a sole propri etor or by a p artnership of whi ch he is a member. Nonres id ent Filipin o c iti zens, w ith resp ect to incom e from w ithout the Philippines, and n onres id ent aliens not en gaged in trade or bu siness in the Philippines , are n o t required to render a dec laration of es tim ated in co me tax. T he declaration shall contain such pertinent infonna lion as the Secre tary of F inance, up on recommendation of the Commi ss ione r, may , by rul es and regul ati ons prescribe. A n indi v idua l may make amendm ents o f a decl ara ti on fi led during the taxable year under the rules and regul ations pres cribed by the Secre tary of Finance, up on recommendation of the Commi ss io ne r." (Emp has is Supp lied) Acc used admitted that he is an ind epend ent distributor of h ea lth and fitness produ cts of FLPP I, w here in he has been a consiste nt to p distributor and fron1 whi ch h e has been earning s ubs tantial am o un ts of incom e during taxab le years 2000 and 200 1. T he prosec ution, on the other hand, presented as its '~r itness, Mr. Mi chae l T. Caj and ab, Co mptroll er of FLPPI , w ho test ifi ed that in verify ing the income received by acc used, h e ch ecked the A lpha L is t m arked as Exhibits " DD" and " DD - 1", w hi ch is a reportori a l requirement by th e 13HZ containing the total am o unt of income paym ents ma de by their company to th eir di stributors or ind ependent co ntractors and tlte tota l amount o f taxes for a particular year, said A lpha Li st w as received by the BlR in the year 2001 as evid enced by the stam ped received . Upon verification, .Mr. Caj andab sent a Letter-Rep ly 57 dated Janu ary 20, 200 3 indi catin g th e tota l income payments th ey m ade to M r. Ki ntanar for ca lendar years 1999 , 2000 and 2001. :tvlorever 01 Exhi bit "M ", p. 55 1 eER'fiPlEB 'f'R UE COPY: P--- c _�_:t!:x::____ 22G CHRJSTINE C. MAZA-GUARIN Execut ive C lerk of Co urt II Court of Tax Appeals

DEC JSLO N Page 33 of 49 CTA CRJM Case No. 0-031 & 0-03 2 P eople vs. Benjamin C. Kinlannr Carm encita F lores, Se rv ice Manage r of Bank of th e l) hilippine Islands (BPI) North Greenhills Branch, tes tified and affirm ed her affid av it which explicitly provid es tha t she came to know Mr. B enj amin G. K int anar, Jr. as a depositor of th eir branch and , a ft er a rev iew of the bank statements, she co nfirmed th at th e checks issued by FLPPI to acc used as incom e payments, m arked as Exhibit "T" to "T-1 9", were encas hed or depos ited under the acco unt na me of the accused. In view of the fact that acc used Benj amin K in tanar, Jr. is a res ident and a citi zen of the Philippines mand ated und er Secti on 5 1 of th e NlRC of 1997 to fil e an incom e tax return ; and the prosec ution having properly es tablished tha t said accused earned incom e, as an ind epend ent distributor of health and fitness produ cts o f FLPPl , accused qu alifi es und er th e first element and is th ere fore liabl e to fi le his annual incom e tax returns during the taxable years tha t he has been ea rnin g in co me w ithin th e Philippines, spec ifi ca ll y durin g the taxa bl e years 2000 and 200 l . The accused (ailed to make or Ole a return at the time required bv lmv Important to the determination o r the presence of the second elem ent is th e determinati on o f th e prop er venu e for the filin g of th e inco me tax re turn and t11e period within which to (ile the sa me, which is prov id ed in Section 5 1, Subsections (B) and (C)( l ), to w it : "SEC. 51. Individual Ret.nrn. - XXX XXX XXX (B) Where to File. Except in cases w here the Commi ss ione r otherw ise permits, th e tclliPr'IF1~ 22 '7 CHRISTINE C. MAZA-GUARIN Executive Clerk of Co urt II Court of Tax Appeals

' Page 34 of 49 DECI SJO N CTA CRJM Case No. 0-0J I & 0-032 People vs. Benjamin G. Kimanar vv ilh an authori zed agent bank, Revenu e District Officer, Co ll ec tion Agent or dul y authori zed Treasurer of the city or muni cipality in which such person ha s his lega l resid ence or pl'in cipa l place of bu sin ess in tlw Philippin es, or if there be no legal res id ence or place of business in the Philippines, w ith the Offi ce of the Comrniss ioner. (C) W hen to F ile. -- ( 1) The return of any individual spec ified above shall be fil ed on or be fore th e fift ee n t h ( 15111) d ay of A pr il of eac h year covering income for preceding taxa ble yea r. XXX XXX xxx" Record s reveal that acc used was reg istered as a taxpayer in Pas ig City where he was a resident h om J 972 to 1997, hmvever fro m 1997 up to 2003 or 2004, accused admitted th at he, togeth er w ith hi s farnil y, transferred to Merv ille, Parafiaque City, then afterward s, they went back to Pas ig C ity. A fter a careful eva luati on o f th e reco rds at hand , thi s Co urt is sa tis fi ed and so ho lds th at the prosec ution satisfactori ly laid down the pieces of ev id ence needed to prove th at th ere is no reco rd of fili ng of the required Income Tax Ret11ms within th e reglement ary perio d, in any of the revenu e di stricts of th e Burea u of Intem al Reveuu e, where acc used res id ed, at specific points in lillie, prior to or durin g th e taxab le years 2000 and 200 I. Full credence is acco rd ed by tlli s Co urt to the Ce rtifica.ti on 58 iss ned, affirm ed and tes tifi ed to by Atty. Barroga, Ol C, Ass istant Distri ct Officer of tb e BlR HDO No. 52, Parafia C]u e Cit y, to th e dTect tl wt acc used B er~j a rnin G. Kint anar, .l r. , did not fi le hi s !TIZs ror the years 1999, 2000 and 2001. Sai~ )S Ex.hibil " K ", Docke t, p. 5,19 CERTlFIED TRUE COPY: 228 C--~ CHRISTINE C. MAZA-GUARIN Executive Clerk of Court ll Court of Tax Appeals

4 '' Page 35 of 49 DE C ISIO N CTA CRIM Case No . 0-03 l & 0-03 2 l'eople vs. Benjamin G. Kintanar certifi ca ti on corroborates a nother Certi fi cation 59 iss ued by th e forme r Revenu e Dis trict Officer Carmelita R . Baco cl on Sep temb er 17, 2002 in response to the requ es t of the Tax Fraud Divi sion reflected on the Access Le tter dated July 18, 2002. Likewi se, th e same w eight is g iv en to th e Ce rtifi ca tion 60 iss ued, affirmed and testified to by Romeo Naranj o, assigned as Revenue Di stric t Officer of Revenu e Di stri ct Office No . 43, Pas ig C ity, w hich essenti a lly states that accused Benjamin G. Kintanar and spou se Glori a V. Kin tanar ha ve not fil ed an y return in th eir office and that th ey are not reg iste red in th e ir di stri ct. Above finding is for tifi ed by ano ther Certifica tion61 dated September 26, 2007 , signed by V ic toria T. De Leon, Head Revenue Exec uti ve Ass istant of the Inform ati on Sys te ms Operations Service of the BIR, in behalf of Ass istant Commiss ioner A lberto Pio De Roda, w hich s ubs tan tially states that based on th e ITS of the BlR accused Bet1jamin G. K intanar, .Jr. is a reg istered Professional Taxpayer, however, BIR has no record of acc used having filed his IT Rs for th e years 1999-200 1. For his part, acc used presented Exhibits " 6" ancl " 11 " to subs tan ti ate his claim that he filed his ITR s for the years 2000 and 2001 w ith the BIR RDO No. 40, Cub ao, Quezo n Ci ty, throu gh Ms. Marina Mendoza, who was a form er employee a t the BlR R evenue Dis trict Oflice, Quezon C ity. W e are not conv in ced. A care ful examination of the lT Rs presented by acc used belies his claim, for the said lTRs are of doubtful authenticity, ?L- 59 Exhi bit " P", Docket, p. 567 CERiiPclE:b-'- fR-ULE-C~OPVi .,, 60 Ex il ibits " S", " S- 1" a11d "S-2" 61 Exhibit " ff", p. 7 10 CHRJSTfNE C. MAZA-GUARIN 229 Ex~cuti ve Clerk nf Court II Court of Tax Appeals

.' Page 36 of 49 D E C lSl O N CTA CRlM Case No. 0-0 3 1 & 0-032 People vs. Benjamin C. Kintanar materi a lly fl awed with th e fo ll ow ing irregulariti es s urrounding its ex istence, to w it: 1) The s ubj ect ITRs are incompl e te in itseH~ as both failed to indicate th e Co mmuniLy Tax Certifi cte (CTC) N umber, P lace a nd Date of iss uance and the Arno unt paid (Doxes 107- 110); 2) The s ubj ec t lTRs contain an add ress (B ile 73, Lot 24, Lag ro S ubdi vision , Q uezon C it y) whi ch, as admitted by the acc used, had never been th e lega l res id ence of his fa mil y; 3) T he subj ec t ITRs bear the stamp " R ece ived " by IillO No . 40 of C ubao, Qu ezon City, which is not the di s tric t office that has juri sd iction over th e acc used g iven address (Lagro Subdiv ision, Q uezo n Ci ty) in th e s ubj ec t ITRs, hen ce, even if a uthentic, were fi led at th e wro ng venu e; and 4) The acc used ad rnilled that he did not read a ll the conten ts of the subj ect ITRs and just reli ed on M s . Marin a Mend oza as to its preparation and fi ling. Moreover, Court canno t g ive-ill and afford credit to the a bo ve ITRs on th e ground that a stamp rece ived by 8JR-RDO No . 40 see min g ly appea rs on the face of the doc umen t. This Co mt is of the cons id ered view that ITRs are pub lic documen ts, spec ifi ca ll y fa llin g under Section !9(c) of Ru le 132 of th e Rul es of Co urt w hich refers to "public records a./private documents required by law to be entered therein ". As such, Section 27, Rul e I32 of th e Rul es of c;::;Z-- Court dec lares: eERf lFIEB TRUE COPY: 230 C--~ CHRISTINE C. MAZA-GUARIN Executive Clerk of Court II Court of Tax Appeals

'' Page 37 of 49 D.EClSlON CTA CRIM Case No. 0-03 I & 0-0 32 People vs. Benjamin G. Kintanar SEC. 27. Public record of a private docutnent. -- An authorized public record of a private document may be proved by the original record , or by a copy thereof, attested by the legal custodian of th e record , with an appropriate certificate that such officer has the custody. As can be g leaned from the foregoing provision, in order to convince this court to accord probative value on the ITRs presented, accused must prove the existence of the subject ITRs in the records of BlR RDO No. 40, either by presenting the or ig inal record of BlR RDO No. 40, or by a copy thereof, attested by the appropriate officer of BIR RDO No. 40 , wi th an appropriate certificate that such officer has the custody. C learly, the accused failed on this point. That the (ailure to make or {ile a return was will[ul Willfu l in tax crimes s tatutes means a voluntary, intentional violation of a known lega l duty and bad faith or bad purpos e need not be shovvn. 62 According to Black's Law Dictionary, " the word '\villful" or "wi llfully " when used in the def~nition of a crime, it has been sa id time and again, means only inLeuLionalJy or purposely as distinguished from accidenta lly or negligently and does not require any actual impropri ety; w hil e on the other hand it ha s been stated vvith equal repetition and insistence that the requirement added by suc h a word is not sa tisfied unl ess there is a bad purpose or ev il intent. " R.o lin M. Perkins & Ronald N. Boyce, Criminal Law 875-76 62 fVle rte ns (Law of Federal In co me Taxalio11) C hapter 117. 05, page 28, Vo llilli e 13, see U.S. v. G ree n, 757 F2cl 11 6 , 85- 1 LJSTC 9 178 (CA7 198 5), in w hi c h th e Co urt, c itin g U.S. v. Moore , 627 F2 d 830 (CA 1980) and U.S. v. Verk uil en, 690 F2 d 6' 18 , 82-2 USTC 9G 18 (CA 7 19 82) , upheld th e co 11 viction of / __ a tax protester for w lllful failure to fil e ret urns ! CERTIFIED TRUE. COPY: y 2 31 C- L�>L CHRISTINE C. MAZA-GUARIN Executive Clerk of CoUJ1 II Court of Tax Appeals

I' DEClSlON Page 38 of 49 CTA CRl M Case No. 0-0 3 I & 0-03 2 People vs. Benjamin G. Kinl anar (3rd eel. 1982)63 . Furth er, Black's Law Di ctionary de fin es "willfulness" as th e voluntary, intentional vio laHo u or disrega rd of a known legal duty. T herefore, in order to con vict an acc used for w illful failur e to fi le income tax return s, it mu s t be shovm that the acc used had know ledge of hi s legal duty to fil e an incom e tax return, but nevertheless, he vo luntarily, knowing ly and intentionally fa il ed to fil e the required returns . This C ourt will now look into the factu al circ ums ta nces of the case al b ar. For his defense, acc used vehem ently denied Lhe charges against him for willful fa ilure to fil e his incom e tax re turns for taxable years 2000 and 2001. Accused c la im s that he hired Ms . Marina M end oza, a fo rm er e mployee of the BIR and an acco untant, to help him in the prepara tion and filin g of his incom e tax return, and th at he suppli ed a ll the data and doc uments she needed fo r its preparati on . H aving reli ed on .1\!ls. M end oza 's k.n ow ledge on filing the ITR, accused in effect is sayin g that he did not w illfull y fail to co mpl y w ith his legal duty to fil e the incom e tax returns . On the other band , Ms. M arin a J\!lencloza vehem entl y denied that she has any invo lve ment in the filin g of the ITRs o f acc used Benj a min G. K intanar, Jr. She admits hav ing m e t the acc used when acc used and his sister, l\!Is. Je niffer K . A baci went to tll e form er's house, but she asserts th at inso far as th e preparati on of accused IT Rs is concerned, she m erely gave bim an ad vice on how to prep are an ITR. Furth er, Ms. fVIend oza reiterated that she did not receive any /...'1 c: .::._._....-- 63 B lack 's La w Dicti ona ry, 8t11 ed ., p. 1630 CERTIFIED TRUE COPY: 232 ~L.._ CHRISTINE C. MAZA-GUARIN Executive Clerk of Court ll Court of Tax Appeals

' Page 39 of 49 D ECJSJO N CTA CRIM Case No . 0-0 3 I & 0-032 People vs. Benja111in G. Kin tanar co mpensa ti on for the advi ces she had g iven the acc used , and w hen as ked about th e checks sh e received from acc used, she clari�i ecl that the check s constitute as ins tallment paym ents for j ewelries tha t the accused purchased from h er so n- in-l aw, Mr. Dong Morenos. Las tl y, Ms. M end oza fi rml y deni ed, up on bein g preseuted the IT R s of tl1 e acc used Lor 2000 and 200 J, havin g prepared the lTR s o f th e acc used. Acc used had knowledge of hi s o bligati on to fil e his incmn e tax re turn for hi s in co me ea rn ed as an ind ep end ent di s tributo r of FL PPl. T his iuference can be pro ved by the tes tirnoni es o Cthe acc used and M s . Marina asserting that for the purpose of preparing and filing of his ITR s fo r 2000 and 2001 , he hired M s. Marin a M end oza but th e s ig natures in the lT Rs are !ti s; he prov id ed a ll th e deta ils includin g personal circums tances. Clearly h e h ad kn ow ledge of his obli gati on th at is w hy he a ll egedl y hired anoth er pe rso n to fil e in hi s behalf. A lso, "willfulness" is a s ta le o f mind that m ay be inferred fi�om the c ircum stan ces o f th e case. 64 Thu s, proo f of w illfulness may be, and usua lly is, s1Jow n by c1.rcumstanll.a1 ev H. 1euce aJoue. 65 Aft er a painstaking analys is of the tes timonia l and documentary evid ence presented by th e prosecuti on and the de fense, th e Court is of th e w ell consid ered view and so h old s that the attend ant c ircums tances in this case, admi tted and proven durin g th e proceedin gs, sati sfacto ril y proved th e e lement o f "willfuln ess" on this cbarge against the acc used. Sitnpl y put, based on th e 64 Bl ack ' s Law dic ti o1Ja ry, 6'11 Ecl iti o11 , p. 1599 65 Unit ed5'totes v. Grumlw, 72 8 F.2cl 7911, '/96-9"/ (6'11 Cir. 19811); Un it ed S t <:~tes v. Gleaso n, 72 6 F.2d d 385 , 388 (8'h Cir. 1984) ; United States v . Marabell es, 724 F. 2d 1374, 1379 (9'11 Cir,_ L 2.8~�0PY� P----- CERTlFIED TKU;;_ ' vp:.-:t;:/L-- CHRISTINE c. MAZA-GUARIN 233 Executive Clerk of Court II Court of Tax Appeals

.' Page 40 of 49 '' DECISION CTA CRlM Case No. 0-0JI & 0-032 People vs. Benjamin G. Kintanar prevailing circumstances in thi s case, th e accused knowingly, voluntari ly and intentionally failed to file his income tax returns for the taxable years 2000 and 2001. Reco rds show that the 13 ureau of Internal Revenu e sent at least three (3) notices to accused Benjamin Kintanar, Jr. for the examination of hi s books of accounts and other accountin g records for all internal revenu e taxes. First one was Letter of Authority (LOA) N o. 00029663 dated March 28, 2003 (Exhibits "A" to "A-3 ") received by Mr. Kintanar on April 3, 2003 as shown by hi s signature (Exhibit "A-3"). Des pit e receipt of the LOA, the spouses did not submit the documents requested. Second Request for the Presentation of Records dated April 2 1, 2003 (Exhibit " 13 ") and rece iv ed on Apri l 23 , 2003 , and then a Fina l No tice for presentation and/or production of the required records/documents dated May 5, 2003 (Exhibit " C") were served and a llegedly received by the spouses. Upon failure of the spouses to present or s ubmit the required docum ents, a Subpoena Duces Tec um dated June 11 , 2003 (Exhibit D" to "D-2") vvas issued to them commanding them to appear before the Chief Prosecution Div is ion in order to enforce cornpliance in the presentation of their books of accounts and other accounting and tax record s. No response was received by the BIR from the spouses in any of these notices. Consequently, a Formal Letter of Demand dated f ebru ary 26, 200�4 (Exhibits "F" to "F-7") including Assessment N otices (Exhibits "G" to "G-7") were issued for the payment of deficiencies on taxes . lt was on ly at thi s point ~ when accused Beqjarnin G. Kintanar, Jr. manifested a hint of concern or CER'flf'IBIJ 'fftUE C0PY: e-r&t-- 234 cHRisriNE C. MAZA-GUARIN Executive Clerk of Court II Court of Tax Appeals

DECJSlON Page 41 of 49 CTA CRIM Case No. 0-03 l & 0-03 2 People vs. Benjamin G. Kintanar interest by sending a Letter dated A ugust 3 1, 2004 (Exhibits " H" to "H-3") protes ting the deficiency assessments for la ck of factu al and lega l bas is, together w ith photocopies of his income tax returns for 2000, 2001 and 2002, and und ertak in g to submit additi ona l docum ents w ithin s ix ty (60) cl ays therefrom. On September 30, 2004 a Letter (Exl1ibits "I" to "I- 1") was iss ued by Mr. A rn e! SD . G ub a ll a, Chi ef o f th e Na ti ona l Inves ti ga tion Di vis ion, reminding the spo uses tha t no documents have yet been received by their office and that they have six ty (60) days from th e date th e protest was fil ed or unti l November 3, 2004 to s ubmit their s upporting doc uments otherwise, the assessment shall become final , executory and demandable. However, despite said und ertaking of accu sed to submit addition a l docum en ts and reminder from Mr. G ubally, acc used did not s ubmit any doc ument. Hence, a F inal D ecision on Disputed Assess ment da ted December 13, 200<1 (Ex hibits " J" to " J- 5") \Vas iss ued informing the spouses about the denial of their protes t for non- submi ss ion of required docum ents w ithin th e s ix ty (60) day reglementary peri od. An o ther circ ums tance vvhich co nvinced thi s Co urt to infe r the presence of "w illfuln ess" on the p art of the accused not to fil e hi s inco me tax return s is hi s admiss ion that he signed the ITRs but failed to read all the contents, and that ll e d id not personally file his JTR and did not verify from th e Bl R if his lTRs were actu ally fi led. Veri ly, a ll of th e foregoin g c irc um stances taken togeth er, acc used di sp layed hi s incli fference lovvard s th e iss ue of hi s tax respo nsibi liti es to the~ 231J CERTIF-'IED "!"RUE COPY: c--~L- CHRISTINE C. MAZA-GUARIN Executi ve Clerk of Court II Court of Tax Appeals

DECISION Page 43 of 49 CTA CRIM Case No . 0-031 & 0-032 People vs. Benjamin G. Kintanar dee med jointly instituted in the same proceedin g. The filing of the criminal action shall necessarily carry with it the filin g of the civil action. No right to reserve the filing of such civil action separately from th e criminal action shall be allowed or recognized. (Rules of Co urt, Rule 111 , sec. l[a] , J'>ar. Ja) In this case, records reveal that the BIR sent a Fonnal Letter of Demand dated February 26 , 2004 (Exhibits "F" to "F-7") includin g Assessment Notices (Exhibits " G" to "G-7"), which were received by the accused on August 10, 2004. Accused Benjamin G. Kintanar, .r r. protested the defici ency assessments, by sending a Letter dated August 3 1, 2004 (Exhibits "I-I" to "H -3"), for lack of factual and legal basis, together with photocopies of hi s income ta x returns for 2000, 2001 and 2002, and undertaking to submit additional documents vvithin sixty (60) days therehom. On September 30, 2004 a Letter (Exhibits "I" to "I- I " ) was issued by Mr. Arne! SD. Guba ll a, Ch ief of th e National Investi gation Division, acknowledging receipt of the protest and reminding the spouses that no documents have yet been received by th eir office and that th ey have sixty (60) da ys fi�om the date the protes t was filed or until Novernber 3, 2004 to submit their supporting doc uments otherwise, the assess ment shall become final , executory and demandable. However, accused did not submit the documents. Hence, BIR iss ued a Final Decision on Disputed Assessment dated December 13, 2004 (Exhibits ".J " to "J- 5"), \Vhich was rece ived by the accused on April 12, 200 5, informing the spouses about the denial of their protes t for non- submi ss ion of required documents w ithin th e six ty (60) da y reg lementary .----~ p e riod. ----------� 236 CERTIPIE'B l'RUE et>flV: C--~2,/L CHRISTINE C. MAZA-GUARIN Executive Clerk of Court II Court of Tax Appeals

DEC ISION Page 44 of 49 CT A CIUM Case No. 0-0 3 1 & 0-0 32 People vs. Benjamin C. Kintanar Sec ti on 228 of th e NIRC of 199 7 provid es for th e p eri od and procedure of protes ting assessm ent, viz : SEC. 228 . Protesting of A ssessment. - When the Co mmi ss ioner or lti s dul y auth ori zed representati ve find s th at proper taxes should be assessed, he shall first noti fY th e tax payer of hi s findings : P rovided, howe ver, That a preassess ment noti ce shall not be required in th e follow in g cases: XXX S uch assessm ent m ay be protested aJministratively by ti ling a requ es t for reconsiderati on or rein ves ti gation w ithin thirty (3 0) cl ays fr om rece ipt o f th e assess ment in s uch form and manner as may be prescribed by implernenting rules and regulations. Within sixty (60) days from filing of the protest, all relevant s upporting documents shall have been s ubmitted ; otherwise, the assessment s hall become final. lf the pro tes t is deni ed in whole or in parl, or is no t acted up on within one hundred eighty (1 80) clays from submi ss ion o f docum ents, th e ta xpa ye r adversely affected by the decision or inaction may appeal to the Court of Tax A ppeals within thirty (30) days from receipt of the said decision, or from th e lapse of one hundred eight.y (UW)-day period ; otherwise, th e decision shall become final, executory ami d emandable. Tll e accused failed to prove tll a t ll e has s ubmitted any doc ument in support o f hi s protes t w ithin GO cl ays fr om the el ate of fi lin g o f hi s protest, or until November 3, 2004, thus, lll e assessm ents against acc used became final pursuant to the above-quoted prov ision . Moreover, for fa ilure o f th e accused t/o ',_/____ 237 CERTIFIED TRUE COPY: C-~~ CHRISTINE C. MAZA-GUARIN Executive C lerk of Coun II Court of Tax Appeals

DEC LSl O N Page 45 of 49 CTA C RJ M Case No. 0-03 1 & 0-0 32 People vs. Benjamin G. Kintanar judi cially app ea l th e Fina l D ec is ion 66 w ith in thirty (30) days fr om rece ipt th ereof~ the assess m ents had becom e fin a l, exec utory and dem and able. According ly, accused is barred from disputing the correctness of the s ubj ect assess ments absent any proo f of irregul arities in th e p erformance of duti es, an assessment dttl y m ade by the Bureau o f Interu al Revenu e examiner and approved by hi s superi or o ffi cers w ill not be di s turbed. A ll presumptions are in favo ur of the correctness of LRx assessm e nts. 67 Th ere fo re, acc used is hereby he ld li abl e to p ay the assessed tax cl e (ic iencies [or taxa ble years 2000 allCI 2001 , in accord m1ce w ith the s ubj ect assess m ents 68 issued again s t hi n1, whi ch had becom e fin al, executory and demand able, to wit: ~41L:..d@.-l~~:f9!�'Pf2!E~::;br0S":Z::;J}!�l&~,~i-..:ti~::�6�i-:::.!.4&1hlf::..~-ii�!.Ri.2!':'.~!a~fh1�Btf��~~"W1?:!�E'i'Jlt~-�M1Jt'::::Zt..:..:._~~~if! TAXABLE YEAR 2000 2 001 T ota l Inco me Tax Sti ll Due 3,LI75 ,090 .64 2,58 6,259 .62 A dd : Surcharge 1,737 ,545 .32 2,97 1,6 12.3 1 3,038,966. 76 Pl0,73 0,39 1.1 8 Interes t 03/3 1/2 004 P 8,25 1,602 .72 TOTAL INCOME TAX DEF lCIENCY lt is expli citl y prov id ed for und er Secti on 255 o f the N IRC of 1997, as amended, that, any person required under this Code or by rules and regulations prom ulgated thereund er to pny any tax, make n re turn, kee p nny record, or 66 Exhi bits " J" to " J-4", pp544- 548 67 Pp 1'. Gloria Kintanar, CTA Crim Case Nos. 0-033 & 0-034 citing Republic v. Co urt ofApp eals, G.R. No. L-3 85110, Apr il 30, 198 7. 68 Ex hi bit "J-11 ", p. 5118 69 1ND ICATED T il E CO RR ECT AMOUNT. Til e co rrect estin1 ated ani OLIIIt is " 5, 172,5 19.25". No te th at i11 Exhi bit "J-tl" tile Total Jnco111 e Tax Still Due from Be njam i11 Ki11 t8 11 m fo r th e taxa bl e yea r 200 I is "5, 172,5 19.25" and NOT "5, 175,2112. 12" as erroneous ly provided for in th e In fo rm ation fi led by th e State Prosec uto r. " Exhi bit "J-11" is Annex "A" of the Final Decision on Disputed Assessm ent iss ued by./ . . Jose Ma rio C. Bufiag, Deputy Comm iss ioner of the Lega l and InspCecEtiRonTGIFrIoEuQDoJf tRheY,B~liCOPY� ~ C---~ L..-- 238 CHRISTINE c. MAZA-GUARIN Executi ve Clerk of Court ll Court of Tax Appeals

DECISlO N Page 46 of 49 CT A CRfM Case No. 0-03 I & 0-032 People vs. Benjamin C. Kin tanur suppl y correc t and accurate informati on, w ho w illfull y fails to pay such tax, make such return, keep such record, or supply correct and accurate information, or withho ld or remit taxes withheld , or refund excess taxes wi thheld on co mpensation, at th e time or Limes required by law or rules and regulation s shall , in addit ion lo o ther penalties provid ed by law, upon conviction thereof, he punished hy n line of not less thnn Ten thou sand pesos (PIO,OOO) and suffer imprisonment of not less than one (1) year Lmt not more than ten (10) years. Taking into account that accused is not disqualified from the scope of the Indeterminate Sentence Law, 70 the same shall app ly, and thu s, the imposab le penalty shall not exceed the max imum fi xed by law, \Vhich is I0 years , and the tnmtmunl penally shall not be less than 1 year, the minimum term prescribed by Section 255 of the N IRC of 1997. Considering th at the s ubject of this disposition invol ves two informati ons fil ed against accuse d, docketed as CTA Criminal Case Nos. 0-031 & 0-032, both for fai lure to file ITRs ror the taxab le years 2000 and 2001 , respectively, th e impositi on of a line or P 10,000 .00 for each information is proper, likew ise, the imp os iti on of ind etermin ate p enalty of impri sonm ent of one (1) year as minimum, Lo two (2) years as maximum for each informalion is app ropr iate under the circurnstances. Secti on 28 0 of the N lRC of 1997, as amend ed, provides for the imposition of subsidiary pena lly in the event that /----- CERTIFIED TRUE COPY: e--~L CHRISTINE C. MAZA-GUARIN -� ------------ ---- ------ - -- - �- --- Executive C lerk of Court II 10 Section l and 2 of Acl no . 41 OJ as amended by Acl No. 4225 and Republic A~Nrrt 40'iJ::fax Appeals 239

D E C r SLON P age 47 of 49 CTA CRIM Case No. 0-0 3 l & 0-03 2 People vs. Benjamin G. Kintanar accused has no property ' ;vilh which to m eet th e fin e imposed upon him by the court, or is unable to pay s uch Cine. WHEREFORE , premises cons id e red, Co urt find s a nd so hold s that: 1. In CTA Criminal Case No . 0 -031, accused Benjamin G. K.intanar, Jr. , is GUILTY BEYOND Rl~ A S ONABLE DOUBT of violation of Section 255 of the National Internal Revenue Code of 1997, as amended, and is he reby sente nced to s uffe r an ind eterminate pena lty of imprisonment of one (1) year as minimum, lo two (2) years as maximum, and is ORDERED to pay a fin e in the amount of PlO ,OOO .OO , with subs idi ary imprisonment in case accu sed has no properly with w hich lo m eet the sa id fine , purs ua nt to Section 280 of llw N IRC of 1997, as amended. As regards civi l lia bility, accused is here by ORDERED TO PAY defi c iency inco me tax for the taxa bl e yea r 2 000 in th e amount of E IGHT MILLION TWO HUNDRE D F TPTY ONE TI-lOUSAND SIX HUNDRE D TWO AND 72/ 100 PESO S (P8,25 1,602.7 2 ), inclu s ive of the surcharge and interes t, plus 20% delinquency interes t p er annum from the to tal amount of P8 ,25 1,60 2.72, co unted from A pril 12, 2 00 5,71 until fu ll y p a id , pursuant to Section 2LI9(C)(3) of th e N IRC of 1997, as t amended; aud CERTIFIED iRUI! COPY: ~ CHRISTINE C. MAZA-GUARIN Executive C lerk of Court II Court of Tax Appeals 71 Ex hi bi t " .1 -5", p. 51111, date w he 11 til e acc used rece ived tile Fi 11 a l Dec is io 11 0 11 D isputed Assess ment elated December 13 , 2004 (Exhibit 'T ' 240

DEC ISiON Page 48 o[ 49 CTA CRJM Case No. 0-03 1 & 0-032 People vs. Benjamin G. Kintanar 2. In CTA C riminal Case No. 0-0 32, accu sed Benjamin G. Kintanar, Jr. , is GUILTY BEYO ND REASONABLE DOUBT of violati on of Sec tion 255 of the Natiouallntemal Revenue Code of 1997, as amended, and is hereby sentenced to s uffer a n ind eterminate penalty of imprisonment of one (1) year as mmunum, to two (2) years as max imum , an d is O R DERED to pay a fin e in th e a mount ofP lO ,OOO.OO, w ith subsidiary imprisonment in case accused has no property with which to mee t the said fin e, pursuant to Sec ti on 28 0 of th e N lRC of 1997, as amended. As regard s civ il liability, accused is hereby ORDERED TO PAY de fici ency in co me tax for the taxa bl e year 200 l in th e a mount of TEN IvllLLION SEVEN HUNDRED THIRTY THOUSAND THREE H UNDR ED N INETY ONE AN D 181100 PESOS (Pl0 ,730,3 91.18), inclusive of the s urcharge aud interest, plus 20% delinqu ency interes t p er annum from th e total amount of P10,73 0,3 9l.l8, counted from A pril 12, 2005 ,77 until full y paid , purs uant to Sec tion 249(C)(3) of the N IRC of 1997, as am ended. No costs. SO ORDERED . -- t!:L--4- / +/~ AMEL IA H.. COTANCCO- MANALASTAS Assoc iate Ju stice 72 Exhibit " J-5", p. 51111, date when the accused rece ived the Fi 11 al Dec isio11 011 Disputed Assess 111 ent dated December 13, 2004 (ExJ1ibit " J" CERTi f'!Eb 'fRUB C()FiY ~ 2 41 C-A.-3-~ CHIUSTINE C. MAZA-GUARIN Executive Clerk of Court II Court of Tax Appeals

DEcrS lON Page 49 of 49 CTA C RlM Case No. 0-03 1 & 0-032 People l'S. Benjamin G. Kintanur ~ -tt4L ~~ WE CONCUR: OLGA PALANCA-ENRIQUEZ \ Assoc iate Ju stice ATTESTATION 1 a ttes t tllat th e con clu sions in th e above Decision were reach ed in consultation befo re the case was ass ig ned to th e wr iter of th e op ini on of th e Co urt 's Di v is io n. CEH.T I F I C A T I O N Pursuant to Secti o n 13, A rticl e V III of the Co nstitution and th e Divi s ion C hairperson 's Attes tation, it is hereby certifi ed th at the conc lu sions in the above Decision were reach ed in cons ultation before the case was assigned to th e w riter of the opi ni on of th e Court. \~~..J\.-. ~- o~ ERNESTO D. ACOSTA Presiding Ju stice 242 e~R.'f'i~IBB 'TRUe eoPV~ C-?~ CHRISTINE C. MAZA-GUARIN Executi ve Clerk of Court II Court of Tax Appeals