PHILIPPINE BANK OF COMMUNICATIONS v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC PHILIPPINE BANK OF CTA EB No. 398 COMMUNICATION, (CTA Case No. 7129) Petitioner, Members: ACOSTA, P.J., -versus- CASTANEDA JR., BAUTISTA, COMMISSIONER OF INTERNAL REVENUE, UY, Respondent. CASANOVA, and PALANCA-ENRIQUEZ, JJ. )(- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - )( RESOLUTION This resolves petitioner's "Motion for Reconsideration" filed on December 5, 2008; respondent's "Opposition (Re: Motion for Reconsideration dated OS December 2008)" filed on December 23, 2008; and petitioner's "Reply (To Respondent's Opposition dated 23 December 2008)" filed on January 21, 2009. Records disclose that petitioner moves for the reconsideration of the Decision of the CTA Second Division in the instant case based on the following grounds:

CTA EB CASE NO. 398 (CTA CASE NO. 7129) RESOLUTION I WITH PBCOM'S AVAILMENT OF THE TAX AMNES1Y PROGRAM UNDER REPUBLIC ACT NO. 9480, PBCOM IS NOW IMMUNE FROM THE COLLECTION OF INTERNAL REVENUE TAXES FOR 2005 AND PRIOR YEARS, INCLUDING THE DEFICIENCY ASSESSMENT OF GRT SUBJECT OF THE PRESENT PETITION. II THE HONORABLE COURT ERRED IN RULING THAT PBCOM'S ONSHORE INCOME FROM ITS FCDU TRANSACTIONS IS NOT EXEMPT FROM NON-INCOME TAXES SUCH AS GRT. IN ENACTING THE CTRP, CONGRESS DID NOT INTEND TO REMOVE THE EXEMPTION OF FCDUS FROM ON-INCOME TAXES SUCH AS GRT. III THE HONORABLE COURT FAILED TO CONSIDER THAT THE DISPUTED GRT ASSESSMENT IS ERRONEOUS FOR USING A TAX BASE AND RATE THAT NOT HAVE BEEN ESTABLISHED AND THEREFORE NOT AUTHORIZED BY LAW. MOREOVER, THE BIR'S ASSESSMENT CANNOT BE ACCORDED THE PRESUMPTION OF CORRECTNESS IN VIEW OF THE BIR'S FAILURE TO CONDUCT AN INVESTIGATION OF PBCOM'S BOOKS OF ACCOUNTS. SUCH PRESUMPTION IS COMPLETELY REFUTED BY THE EVIDENCE ON HAND. On December 23, 2008, petitioner filed a " Motion to Admit (Certified True Copies of Amnesty Documents)". Copies of the following documents were attached to the said motion: a) Annex "A"- BIR Tax Payment Deposit Slip dated March 6, 2008, evidencing the payment and remittance of the tax amnesty1; b) Annex "B"- Notice of Availment of Tax Amnesty2 dated March 5, 2008; c) Annex "C"- Tax Amnesty Payment Form/Acceptance of Payment Form (BIR FORM 0617)3; d) Annex "D"- Previously filed Income Tax Return for 2005 with attached 1 Exhibit " L", CTA En Bane Rollo, p. 537. 2 Exhibit " M", CTA En Bane Rollo, p. 538. 3 Exhibit "N", CTA En Bane Rollo, p. 539.

CTA EB CASE NO. 398 (CTA CASE NO. 7129) RESOLUTION SALN/Balance Sheet as of 31 December 20054; e) Annex "E"- Revised or restated SALN/Balance Sheet as of 31 December 20055: and f) Annex "F"- Tax Amnesty Return (BIR FORM 2116)6. During the scheduled Commissioner's hearing on February 10, 2009 for the due identification, authentication and marking of petitioner's tax amnesty documents, results of comparison by Atty. Theresa G. Cinco-Bactat, Executive Clerk of Court III, showed that Exhibits "L", "M", "N", "0", "P", and "Q" were all faithful reproductions of their originals7. Considering that the proper remedy of petitioner is to file a motion to withdraw the petition, the Court En Bane shall accordingly treat petitioner's "Motion for Reconsideration" as a motion to withdraw the petition. After carefully evaluating the documents submitted, the Court En Bane is convinced that petitioner duly complied with the requirements of the Tax Amnesty Program. The effect thereof is stated under Section 6 (a) of the law, viz: "Section 6. Immunities and Privileges.- Those who availed themselves of the tax amnesty under Section 5 hereof, and have fully complied with all its conditions shall be entitled to the following immunities and privileges: (a) The taxpayer shall be immune from the payment of taxes as well as additions thereto, and the appurtenant civil, criminal or administrative penalties under the National Internal Revenue Code of 1997, as amendecf, arising from the failure to pay any and all internal revenue taxes for taxable year 2005 and prior years. " 4 Exhibit " P", CTA En Bane Rollo, p. 540-653 . 5 Exhibit "Q", CTA En Bane Rollo, p. 654. 6 Exhibit " 0 ", CTA En Bane Rollo, p. 655 . 7 COMM ISSIONER' S REPORT, CTA En Bane Rollo, p. 665 .

CTA EB CASE NO. 398 (CTA CASE NO. 7129) RESOLUTION IN VIEW OF THE FOREGOING, petitioner's "Petition for Review" filed on June 26, 2008 is deemed WITHDRAWN , and the afore-entitled case is considered CLOSED and TERMINATED, subject to the provisions of RA 9480. SO ORDERED. L 1v. L>__....._ ERNESTO D. ACOSTA Presiding Justice (On Leave) ~ JUANITO C. CASTANEDA, JR. CAESAR A. CASANOVA Associate Justice Associate Justice AERs~ s~~~icUeY O~IQUEZ Associate Justice