UPSI MANAGEMENT INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBliC OF THE PHiliPPINES Court Dl TIIIDPIIIS QUEZON CITY SECOND DIVIS/OII UPSI MANAGEMENT, INC., C.T.A. CASE NO. 7379 Petitioner, Members: -versus- CASTANEDA, JR., Chairperson UY, and PALANCA-ENRIQUEZ, JJ. COMMISSIONER OF INTERNAL Promulgated : REVENUE, MAR 1 3. 2009/ Respondent. C\ 0 X- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :r::- - - Jf:o .,.. - X --- - -- -- RESOLUTION This resolves petitioner's: (a) "Omnibus Motion for Confirmation of Petitioner's Rights and Immunities under the Tax Amnesty Act of 2007; Cancellation of Tax Assessments and Withdrawal of the Petition for Review" filed on July 31, 2008 praying for the issuance of an Order confirming petitioner's rights and immunities under RA No. 9480; cancellation of assessments; and withdrawal of the Petition for Review, and temporarily suspending the hearing of the case until resolution hereof; and (b) "Compliance/ Manifestation" filed on February 13, 2009 submitting certified true copy of the UCPB BTR-BIR Deposit Slip, duly certified by the authorized person in custody of the same. G J1. V,, �

RESOLUTION C.T.A. CASE NO. 7379 Despite due notice, respondent did not file any comment to petitioner's "Omnibus Motion" or present controverting evidence to petitioner's Compliance. Finding the said Compliance/Manifestation to be in order, the same is hereby NOTED. With respect to petitioner's Omnibus Motion, it is averred that on March 3, 2008, it availed of the tax amnesty under RA No. 9480; that it paid the amnesty tax to United Coconut Planters Bank, U.N. Avenue Branch and in support thereof, petitioner submitted the original copies of the following documents: (1) Notice of Availment of Tax Amnesty; (2) Statement of Assets, Liabilities and Net Worth (SALN) as of December 31, 2005; (3) Tax Amnesty Return (SIR Form No. 2116); (4) Tax Amnesty Payment Form (SIR Form No. 0617); and (5) certified true copy (by the Bank Officer) of UCPB BTR-BIR Deposit Slip evidencing payment of P568,642.40. Hence, petitioner prays that an Order be issued for the: (1) confirmation of petitioner's rights and immunities under RA No. 9480 by affirming that all the issues mentioned in the Joint Stipulation of Facts are covered by RA No. 9480; (2) cancellation of assessments; (3) withdrawal of Petition for Review; and, (4) temporary suspension of the hearing of the case until this Omnibus Motion is resolved. Clearly in this case, petitioner availed of the tax amnesty provided under Republic Act No. 9480 (RA No. 9480), entitled "An Act Enhancing Revenue Administration and Collection By Granting An Amnesty On All Unpaid Internal Revenue Taxes Imposed By the National Government for Taxable Year 2005 and Prior Years" which provides that "any person, natural or juridical, who wishes to avail himself of the tax amnesty authorized and granted under this Act shall file with the Bureau of Internal Revenue (SIR) a 107

RESOLUTION C.T.A. CASE NO. 7379 notice and Tax Amnesty Return accompanied by a Statement of Assets, Liabilities and Networth (SALN) as of December 31, 2005, in such form as may be prescribed in the implementing rules and regulations (IRR) of this Act, and pay the applicable amnesty tax within six months from the effectivity of the IRR."1 Additionally, Section 4 of RA No. 9480 provides thus: "SEC. 4. Presumption of Correctness of the SALN. - The SALN as of December 31, 2005 shall be considered as true and correct except where the amount of declared networth is understated to the extent of thirty percent (30%) or more as may be established in proceedings initiated by, or at the instance of, parties other than the SIR of its agents: Provided, That such proceedings must be initiated within one year following the date of the filing of the tax amnesty return and the SALN. Findings of or admission in congressional hearings, other administrative agencies of government, and/or courts shall be admissible to prove a thirty percent (30%) under-declaration."(Underscoring supplied.)" As duly shown by petitioner, it is not disqualified from availing of the tax amnesty provided under RA No. 94802, and that it has appropriately complied with the requirements set forth under said law. Moreover, to date, the contestability period of one (1) year from the time of petitioner's availment of the tax amnesty law on March 3, 2008 had elapsed. Correspondingly, it is 1 Section 2 ofRA No. 9480 2 SEC. 8 ofRA No. 9480 mentions the Exceptions, as follows- "The tax amnesty provided in Section 5 hereof shall not extend to the following persons or cases existing as of the effectivity of this Act: (I) Withholding agents with respects to their withholding tax liabilities; (2) Those with pending cases falling under the jurisdiction of the Presidential Commission on Good Government; (3) Those with pending cases involving unexplained or unlawfully acquired wealth or under the Anti-Graft and Corrupt Practices Act; (4) Those with pending cases filed in court involving violation of the Anti Money Laundering Law; (5) Those with pending criminal cases for tax evasion and other criminal offenses under Chapter II of Title X of the National InternalRevenue Code of 1997, as amended, and the felonies of frauds, illegal exactions and transactions, and malversation of public funds and property under Chapters III and IV of Title VII of the Revised Penal Code; and (6) Tax cases subject of final and executory judgment by the courts." 108

RESOLUTION C.T.A. CASE NO. 7379 fully entitled to the immunities and privileges mentioned under Section 6 of RA No. 9480, which reads: "SEC. 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: "1. The taxpayer shall be immune from the payment of taxes, as well as addition thereto, and the appurtenant civil, criminal or administrative penalties under the National Internal Revenue Code of 1997, as amended, arising from the failure to pay any and all internal revenue taxes for taxable year 2005 and prior years. 2. The taxpayer's Tax Amnesty Returns and the SALN as of December 31, 2005 shall not be admissible as evidence in all proceedings that pertain to taxable year 2005 and prior years, insofar as such proceedings relate to internal revenue taxes, before judicial, quasi-judicial or administrative bodies in which he is a defendant or respondent, and except for the purpose of ascertaining the networth beginning January 1, 2006, the same shall not be examined, inquired or looked into by any person or government office. However, the taxpayer may use this as a defense, whenever appropriate, in cases brought against him. 3. The books of accounts and other records of the taxpayer for the years covered by the tax amnesty availed of shall not be examined: Provided, That the Commissioner of Internal Revenue may authorize in writing the examination of the said books of accounts and other records to verify the validity or correctness of a claim for any tax refund, tax credit (other than refund or credit of taxes withheld on wages), tax incentives, and/or exemptions under existing laws. xxx." The foregoing is bolstered by the recent ruling of the Supreme Court in Philippine Banking Corporation (now Global Business Bank, Inc.) vs. Commissioner of Internal Revenue, wherein it held that: "xxx Considering that the completion of these requirements shall be deemed full compliance with the tax amnesty program, the law mandates that the taxpayer shall thereafter be immune from payment of taxes, and additions 109

RESOLUTION C.T.A. CASE NO. 7379 Page 5 of5 thereto, as well as the appurtenant civil, criminal or administrative penalties under the NIRC of 1997, as amended, arising from failure to pay any and all internal revenue taxes for taxable year 2005 and prior years. 3 WHEREFORE, petitioner's "Omnibus Motion for Confirmation of Petitioner's Rights and Immunities under the Tax Amnesty Act of 2007; Cancellation of Tax Assessments and Withdrawal of the Petition for Review" is hereby GRANTED and the subject assessments in the present case are hereby SET ASIDE solely in view of petitioner's availment of the Tax Amnesty Program under RA No. 9480. Accordingly, the instant Petition for Review is DEEMED WITHDRAWN and this case is hereby considered CLOSED and TERMINATED. SO ORDERED. a t:JL.J.AdcN-YITuO Cc. C.aASdT-ANEaDtA.,tJQR-.' . Associate Justice ER Y Q OLGA UEZ Ass ce Associate Justice 3 G.R. No. 170574, January 30, 2009. 1 l..i 0