LIFEBANK FOUNDATION, INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY EN BANC L IFEBANK F O UNDAT I O N, CTA EB NO. 1727 I NC., Petitioner, (CTA Case No. 8836) Present: -versus- Del Rosari o, P.J. , Castaneda, Jr., Uy, Fabon- V ic t o rino, Mindaro-G rul la, Ringp is-Liban, Manahan, Bacorro-Viliena, and Modesto-San Pedro, JJ. COMMISSIONER OF Promulgated: INTERNAL RE VENUE, Respondent. NOV 0 6 2019 ,_3.'.3S~~ x- -- - ----------------------------------- - - - - - - - - - - --- -- --- --- ---- ----- -- -------- ~-- ~----x� R ESOLUTION On June 25, 201 9, petitioner fil ed a Motion fo r Reconsideration (of the Decision dated May 14, 2019), without a comment fi led by respondent Commissioner of Internal Revenue (CJR) despite notice. ' According ly, on October 8, 20 19, the Court submitted the motio n for resolution .2 However, on October 14, 20 19, the parties fi led an unverified Joint Manifestation and Motion [With Leave of Court to Defer Resolutio n in V iew of Offer of Comprom ise]. The parties manifested the fo llowing inc idents : � On February 25, 2014, peti tioner fil ed w ith BIR Revenue Region No. 11 - Iloilo City an Application for Compromise Settleme nt pursuant to Section 204(A) of the National Internal Revenu e Code 1 October 4, 20 19 Records Verification, Rollo, p. 542. 2 Minute Resolution, Rollo, p. 543.

RESOLUTION CTA EB No. 1727 (CTA Case No. 8836) of 1997, as amended, (NIRC) and paid forty percent (40%) of the basic tax due:3 Tax Basic Compromise Percentage Tax of Basic Tax T~Jle P77,251,!46.30 Pa~ment 70,!09,993.16 40% Income Tax P147,361,139.46 P30, 900,458.52 40% Value-Added Tax 28,043,997.26 40% Total P58,944,455. 78 � In a May 15, 2017 Memorandum, the CIR tasked Head Revenue Executive Assistant (HREA) Felix Paul R. Velasco III, Enforcement and Advocacy Service, "to supervise and coordinate the conduct and evaluation of cases pending with the CTA where proposals for judicial compromise or amicable settlement have been submitted by the taxpayer(s), and to determine, with the approval of the Commissioner, the appropriate legal strategies or judicial action to take in order to secure a final compromise/settlement agreement with judicial conformity."4 � On August 28,2019, petitioner's Board ofTrustees resolved to avail of the tax amnesty on delinquencies pursuant to Republic Act No. 11213, through its attorney-in-fact, Angara Abello Concepcion Regala & Cruz (ACCRALAW)_5 � On September 25, 2019, petitioner filed with the BIR National Office, through ACCRALAW, an offer of amicable settlement, by way ofjudicial compromise, which proposed to pay the "remaining tax assessment by paying a total of75% ofthe basic tax less the 40% compromise payment initially made, or a total additional compromise payment ofPhp51,576,398.82."6 Pending approval of the National Evaluation Board, the parties moved that the resolution of the Motion for Reconsideration (of the Decision dated May 14, 20 19) be deferred and held in abeyance. First, the Court notes, however, that the factual incidents alleged by the parties are new matters which were not introduced in evidence and, thus, did not become part of the records of the case. 3 Annexes A, Band C. Joint Manifestation and Motion [With Leave of Court to Defer Resolution in View of Offer of Compromise]. 4 Annex D, Joint Manifestation and Motion [With Leave of Court to Defer Resolution in View of Offer of Compromise]. 5 Annex E, Joint Manifestation and Motion [With Leave of Court to Defer Resolution in View of Offer of Compromise]. 6 !d.

RESOLUTION CTA EB No. 1727 (CTA Case No. 8836) Page 3 of4 Second, the annexes attached as support for the unverified Joint Manifestation and Motion [With Leave of Court to Defer Resolution in View of Offer of Compromise] are mere photocopies. Third, verification as a requirement is not an empty ritual bereft of any legal importance. It is intended to secure an assurance that the allegations contained in this motion are true and correct; are not speculative or merely imagined; and have been made in good faith. 7 Finally, the authority granted by the petitioner's Board of Trustees is limited only to the availment of tax amnesty on delinquencies pursuant to Republic Act No. 11213 and does not cover the compromise under Section 204(A) of the NIRC. WHEREFORE, premised considered, the motion is DENIED for lack of merit. SO ORDERED. Presiding Justice 9.. .c._ .G.T~""""G4, Sl. . JUANlTO C. CASTANEifA: JR. Associate Justice ER~P.UY ABON-VICTORINO Associate Justice ON LEAVE CIELITO N. MINDARO-GRULLA Associate Justice 7 Makilito B. Mahinay v. Han. !reneo Lee Gako. Jr., et al.� G.R. No. 165338, November 28,2011.

RESOLUTION CTA EB No. 1727 (CTA Case No. 8836) Page 4 of4 ~- _,k h..._ ~ ....... , ~J.~ MA. BELEN M. RINGPIS-LIBAN CATHERINE T. MANAHAN Associate Justice Associate Justice ' MARIA