CTA Case No. 1877 (Resolution)

REPUBLIC OF THE PHILIPP!:~ FS COURT OF TAX APPEALS QUEZON Cl1'Y ANA BUILDINPGe1tiItNioCn.e, r, C.T.A. CASE NO. 1877 versus CONMISSIONER OF INTERNAL REVENUE, Respondent. X- - - - - - - - - X R �. E S 0 L U��T I . 0 N This treats of petitioner's ttManifestation" filed on February 6, 1973, praying that the assessment for the year 1961 be ordered cancelled and withdrawn on the ground that it has availed of the Presidential Decree No. 68 by paying re- spondent the sum of '?,662.29. (Annex "A" Mani- festation, p. 70, CTA rec.) Respondent interposed his opposition and contends that as of January 31, 1973, the correct amount to be paid representing the 60% of the total amount due the government should be P7,692.95 and not the amount of ~? ,662.29 as paid. Thus, there eXists a balance of f30 .66 still due under Presidential Decree No . 68. Respondent contended further that since the 60% has not been fully paid, petitioner is not entitled to the !tO% deduction pursuant to paragraph 2(a)

. RESOLUT I ON - . CTl\. C SE . NO . 1877 2 of the }>residential Decree but only to 2 01~ de- dl!-ction as provided for in para graph 2(b) of said decre e computed as follows: .. 1\mount due � � � � � � � � i~ 12 , 870 . 58 Deduct 20% � � � � . � � � 2, 2z4 . 12 Tax due per Pres . Decree F 10, 296 .1+6 Less amount paid � � � � �. 2 ,66..a_._29 ANOill~T STILL D"i.JE i.JilD COLLECTIBLE � � � � � � � � ~' 2 , 634:.J..Z 'll1e pertinent provision of ? residential Decree No . 68 relied up on by the parties is quoted as follows: 11 2 . 'r hat in the case of all delinquent tax accounts �which re- main un paid� involving an amount exceeding One Ht.mdred Pesos ( ~ 1 OO . CO ) including all unlisted and/or cur- rent tax accounts resulting from assessments and/or letters of demand . already issued as of the date of this Decree and/or such accounts \�lhich are protested and/or contested , the final resolution of which are still pending in the Bureau of I n ternal Hevenu e and/or in courts shall be produced � .t(a) By 4o;�& if said delinquent tax is D,Sid i.n_ full on or before J'anlaar_y 3..1 ' 1263. . '(b) By 20% if said delinquent tax account is paid in full on or before February 28 , 1973 . 1 (Under- lining supplied . ) From the above quoted provision, it is evident that in order to avail of t he 4 o;;~ deduction under paragraph 2(~) , the delinquent taxpayer must pay

RESOLUTION - CTA CASE NO. 1877 3 in full the 60% of the total tax due the govern- ment on or before January 31, 19?3. It is not c0ntroverted that petitioner paid the sum of P?,662.29 on the basis of respondent's own computation. (Annex " ", page 78, CTA rec.) � Good faith therefore is obvious. To compel peti- tioner to pay the sum of �2,634.17 instead of the balance of P30. 66 would in effect penalize it not for its acts but for the very acts of respondent's agents. In this jurisdiction, failure to pay the cor- rect amount of the tax is no justification for penalizing the taxpayer when such failure is directly attributable to the ~cts of respondent's agents. (Paper Industries Corporation of the Philippines v . Camm. of Int. Revenue, CTA Case No. 1680, July 22, 1966; Connell Bros. Co., v. Collector of Int. Revenue, G.R. No. L-154?0, March 31, 1964.) WHEREFORE, it is our opinion that petitioner is liable only for the sum of �30.66, representing the balance of 60,% of its original tax obligation, pursuant to Presidential Decree No. 68. Upon payment of said amount and advice given to this Court of such payment, this case will be considered closed.

RESOLUTION - CTA CASE NO. 1877 SO ORDERED. Quezon City, April 3, 1973� ;L -~~- RAMON L. AVA..'KfCENA Associate Judge . WE CONCUR: