PEOPLE OF THE PHILIPPINES v. REBECCA S. TIOTANGCO 153 Mabini St., Puerto Princesa City Entrepreneur of Anilos Trading and Construction (Consolidated with CTA Crim. Case Nos. O-603 & O-604)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS Quezon City Second Division PEOPLE OF THE PHILIPPINES, CTA CRIM CASE NOS. 0-599, Plaintiff, 0-603 & 0-604 For: Violation of Section 255 of the NIRC of 1997, as amended J\!Iembers: -versus- RINGPIS-LIBAN, Chairperson MODESTO-SAN PEDRO, and REBECCA S. TIOTANGCO FERRER-FLORES,JJ. Entrepreneur of Anilos Trading and Consttuction, Promulgated: .r\ccused. X---------------------------------------------------------------------------------~-~---- DECISION ON THE CIVIL ASPEC RINGPIS-LIBAN,J.: Nature of the Case This is a remanded case for the determination of accused Rebecca S. Tiotangco's civil liabilities for taxes and penalties, pursuant to Supreme Court Resolution dated December 04, 2023 rendered in G.R. No. 263987. Background To recall, plaintiff filed four (4) Informations against accused, the sole proprietor of L\nilos Trading and Construction, for violations of Section 255 of the National Internal Revenue Code ("NIRC") of 1997, as amended, for her alleged failure to supply correct and accurate information in her quarterly value- y added tax ("VAT") Returns for the third and fourth quarters of taxable year ("TY") 2008 and first and second quarters of TY 201

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 The Informations against the accused read as follows: CTA Crim. Case No. 0-5991 "That on or about January 25,2009 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of Anilos Trading and Construction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the V1\T return of the said business for the 4th quarter of 2008 filed with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Twenty Four Million Eight Hundred Fifty Four Thousand and Four Pesos and 80/100 ([Php]24,854,004.80) subject to [twelve percent (12%)] VAT resulting in tax deficiency of Two 1\!Iillion Nine Hundred Eighty Two Thousand Four Hundred Eighty Pesos and 58/100 ([Php]2,982,480.58),exclusive of surcharges and interests. CONTRARY TO LAW." CTA Crim. Case No. 0-60f~ "That on or about April 25, 2010 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of Anilos Trading and Consttuction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the VAT return of the said business tax for the 1st quarter of 2010 filed with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Thirteen Million Two Hundred Sixteen Thousand Eight Hundred Eighty Three Pesos and 33/100 ([Php]13,216,883.33) subject to [twelve percent (12%)] VAT resulting in tax deficiency of One l'vlillion Five Hundred Eighty Six Thousand and Twenty Six Pesos ([Php]1,586,026.00),exclusive of surcharges and interests. CONTR�\.RYTO LAW." ( Docket (CTA Crim Case No. 0-599), Information dated October 15, 2015, pp. 6-7. 2 Docket (CTA Crim Case No. 0-601), Information dated October 15, 2015, pp. 6-7.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 CTA Crim. Case No. 0-60Y "That on or about October 25, 2008 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of .Anilos Trading and Construction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the V.AT return of the said business for the 3rd quarter of 2008 flied with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Thirty Million Thirty Nine Thousand One Hundred Sixty Five Pesos and 7/100 ([Php]30,039,165.07) subject to [twelve percent (12%)] VAT resulting in tax deficiency of Three l\!Iillion Six Hundred Four Thousand Six Hundred Ninety Nine Pesos and 81/100 ([Php]3,604,699.81),exclusive of surcharges and interests. CONTRARY TO LAW." CT.A Crim. Case No. 0-6044 (Amended Information) "That on or about July 25, 2010 and thereafter, in Puerto Princesa City, and within the jurisdiction of this Honorable Court, the above-named accused, a registered taxpayer and entrepreneur of .Anilos Trading and Construction, did then and there willfully, unlawfully and feloniously fail to supply correct and accurate information in the VAT return of the said business tax for the 2nd quarter of 2010 with the Bureau of Internal Revenue by did and there not declaring other revenue in the amount of Nine Million Nine Hundred Seventy One Thousand Twelve Pesos and 97/100 ([Php]9,971,012.97) subject to [twelve percent (12%)] V.AT resulting in tax deficiency of One Million One Hundred Ninety Six Thousand Five Hundred Twenty One Pesos and 56/100 ([Php]1,196,521.56),exclusive of surcharges and interests. CONTRARYTOLAW~ Docket (CTA Crim Case No. 0-603), Information dated October 15, 2015, pp. 6-7. 4 Docket (CTA Crim Case No. 0-604), Information dated October 15, 2015, pp. 6-7.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 On November 13, 2019, the First Division of the Court of Tax Appeals ("CTA") promulgated a Decision5: 1) _Acquitting accused Rebecca S. Tiotangco in CTA Criminal Case No. 0-601, for failure of the prosecution to prove her guilt beyond reasonable doubt; and 2) Finding accused guilty beyond reasonable doubt on three (3) counts of violation of Section 255 of the National Internal Revenue Code ("NIRC") of 1997, as amended. She was sentenced for each of the offense charged in CTA Criminal Case Nos. 0-599, 0-603, and 0-604, to suffer an indeterminate penalty of one (1) year, as minimum, to two (2) years as maximum term of imprisonment. 1\ccused was ordered to pay a fine of Php10,000.00, with subsidiary imprisonment in case she has no property with which to meet such fine. The CTt\ First Division ruled however that the plaintiff failed to present any evidence that an assessment (i.e., final determination) has been issued by the Bureau of Internal Revenue ("BIR") against accused, and that the presentation of the computation of the unreported income cannot be used as basis for the determination of her civil liabilities. As such, no proper determination of the accused's civil liabilities can be made. Aggrieved, plaintiff filed a ":Lviotion for Partial Reconsideration"6 of the Decision insofar as it denied the recovery of the civil aspects of CTA Crim. Case Nos. 0-599, 0-601, 0-603 and 0-604. Plaintiff attached photocopies of a Preliminary _.r\ssessment Notice7 ("PAN") dated June 18, 2018 and a Formal Letter of Demand 8 ("FLD") with Details of Discrepancies and Audit Result/Assessment Notice (AN) all dated July 13, 2018. Plaintiffs prayer for the accused to pay deficiency VAT for the third and fourth quarters ofTY 2008 and first and second quarters ofTY 2010 was denied in a Resolution9 dated June 15, 2020(1 5 Docket (CTA Crim Case No. 0-599), pp. 2124-2150; Penned by Associate Justice Esperanza R. Fabon-Victorino, concurred in by Associate Justice Catherine T. Manahan, with Dissenting Opinion of Presiding Justice Roman G. Del Rosario. 6 !d., pp. 2155-2201. 7 Id., pp. 2165-2167. 8 Id., pp. 2168-2176. 9 Id., pp. 2227-2234.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 Proceedings in the CoNrt ofTax Appeals En Bane Consequently, plaintiff as petitioner, elevated the civil aspects of the prior consolidated cases and filed with the CTA En Bane a "Petition for Review"10 on July 14, 2020. The case was docketed as CTA EB Crim. Case No. 080. In the Resolution11 dated September 18, 2020, the CTA En Bane ordered accused as respondent to file her comment, not a motion to dismiss, within ten (1 0) days from receipt thereof. Accused as respondent complied and posted her "Comment (to the Petition for Review under Rule 8, Sec.3 (b) of the Revised Rules of the CTA)"12 on October 29, 2020. The case was tl1en submitted for decision in a Resolution 13 dated January 06, 2021. On February 03, 2022, the CTA En Bane rendered its Decision, 14 the dispositive portion of which reads: "WHEREFORE, with the foregoing, the instant Petition for Review flied by petitioner People of the Philippines on July 2020 is hereby DENIED for lack of merit. Accordingly, the First Division's Decision and Resolution dated 13 November 2019 and 15 June 2020, respectively, in CTA Crim. Case Nos. 0-599,0-601, 0-603 and 0-604, all entitled People of the Philippines v. Rebecca S. Tiotangco, Entrepreneur of Anilos Trading and Construction, are hereby AFFIRMED. SO ORDERED." The CTA En Bane held that it could not impose any civil liability against the accused since the alleged civil liabilities cannot be determined with accuracy. First, the computations in the Joint Complaint-Affidavit were mere estimates and as such not sufficient to fix with definiteness the civil liabilities of accused relative to the taxable periods under consideration. Second, the PAN and FLD, aside from being mere photocopies, were not offered as evidence for plaintiff. Final!J, even if the the PAN and FLD were taken into consideration, the same would not alter the outcome of the instant case (insofar as the civil aspect is concerned) since ty 10 Rollo, pp. 1-13. 11 Id, pp. 87-88. 12 Id, pp. 89-93. 13 Id, pp. 96-97. 14 Jd, pp. 100-122.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 the amounts stated therein do not coincide with the computations provided in the Joint Complaint-Affidavit. Plaintiff then flied a "Motion for Reconsideration (of the Decision dated February 3, 2022) 15 on March 04, 2022, to which accused flied its "Comment to the Motion for Reconsideration (of the Decision dated February 3, 2022)"16 on April 25, 2022. In the Resolution17 dated October 19, 2022, the CTA En Bane denied plaintiff's motion for reconsideration, the dispositive portion of which states: "WHEREFORE, pet1t10ner People of the Philippines' lVIotion for Reconsideration flied on 04 Niarch 2022 is DENIED for lack of merit. SO ORDERED." Proceedin;;s in the Sttpreme Coz-111 Plaintiff then filed with the Supreme Court a "Petition for Review on Certiorari" entitled 'People of the Philippines) Petitioner) verstts Rebecca S. Tiotangco) Respondent)). The case was docketed as G.R. No. 263987. On December 04, 2023, the Supreme Court rendered a Resolution, granting the "Petition for Review on Certiorari", the pertinent portions of which read: "ACCORDINGLY, the Petition for Review on Certiorari si GRANTED. The February 3, 2022 Decision and the October 19, 2022 Resolution of the Court of Tax _c\ppeals En Bane are AFFIRMED with MODIFICATIONS. CTA Criminal Case Nos. 0-599, 0-603 and 0-604 are REMANDED to the Court of Tax Appeals in Division to determine respondent Rebecca S. Tiotangco's civil liability for taxes and penalties, in accordance witl1 this Resolution. The Court of Tax Appeals in Division is DIRECTED to conduct the proceedings with reasonable dispatch-,; 1s Id., pp. 123-134. 16 !d., pp. 146-149. 17 Id., pp. 155-159.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 SO ORDERED." In the Resolution dated January 14, 2025, the Supreme Court denied accused's "lVIotion for Reconsideration" with finality, no substantial argument having been adduced to warrant the reconsideration sought. On February 17, 2025, an Entry of Judgment was issued stating that the Resolution dated December 04, 2023 rendered in G.R. No. 263987 has become final and executory and recorded in the Books of Entries ofJudgment on January 14, 2025. In accordance with the Supreme Court's Resolution dated December 04, 2023, the remanded case was re-raffled to the CTA Second Division on September 01, 2025 for study and report. DiscussionI Ruling The Supreme Court, in G.R. No. 263987, pursuant to its Resolution dated December 04, 2023, granted plaintiffs Petition for Review on Certiorari which assailed the Decision dated February 03, 2022 and Resolution dated October 19, 2022 of the CTA En Bane in CTA EB Crim Case No. 080. A reading of the said Resolution indicates that accused's guilt for the crimes charged has already been settled since accused already applied for probation and acceded to the CTA's verdict finding her guilty thereof. Only one issue remained - whether the BIR may collect the payment of tax deficiencies in a criminal action for a violation of Section 255 of the NIRC of 1997, as amended, for a taxpayer's failure to supply correct and accurate information in the tax returns. Contrary to the ruling espoused by the CTA En Bane, the Supreme Court held that a final determination (i.e.) assessment) of a deficiency tax is not necessary before one may be prosecuted for criminal violations of the Tax Code. For this reason, the case was remanded to this Court to ascertain the amount of deficiency tax for which the accused is liable. Hence, this Court shall confine the succeeding discussions on the determination of the above matter as ordered by the Supreme Court. This Decision pertains to the civil liability of the accused in relation to her crime of fraudulent failure to supply correct and accurate information in her quarterly VAT return for third and fourth quarters of TY 2008 and second I'

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 quarter ofTY 2010. The question is whether accused is liable for deficiency VAT for the said periods. After a second hard look, the Court finds in the affirmative. The documentary evidence presented by plaintiff to prove accused's civil liability for VAT are as follows: 1) Joint Complaint-Affidavit18 of Revenue Officer ("RO") May Q. Jaminola (May F. Quiambao, maiden name) and RO Jose Maria F. Reyes dated September 11, 2024, containing the computation19 of accused's alleged deficiency V~AT for TY 2008 and 2010; 2) Letter20 dated September 24, 2013, addressed to the then Governor ofPalawan Province, Hon. Jose C. Alvarez, where the BIR requested for a certification pertaining to the total payments (annual and quarterly basis) covering the period 2008 to 2010, made or released by the Provincial Government ofPalawan to its contractors, one of which was Anilos Trading and Construction; 3) Certification 21 dated December 05, 2013 issued by the Provincial Accountant of the Government of Palawan that it paid Anilos Trading and Construction a total amount of Php120,145,403.48 for TYs 2008 to 2010, with attached schedule22 of payments per quarter; 4) Journal Entry Vouchers23 of the Provincial Government of Palawan, which served as the basis for the schedule of payments attached to the Certification dated December 05, 2013;f 18 Docket (CTA Crim Case No. 0-599), Exhibit "P-1", pp. 508-518. 19 Id., Exhibits "P-1-c" and "P-1-d", pp. 515-516. 20 Id., Exhibit "P-7", p. 587. 21 Id., Exhibit "P-8", p. 588. 22 Id., Exhibit "P-8-1", pp. 589-591. 23 Id., Exhibits "P-29" to "P-29-uuuu", p. 1781-1830 and 1844-1893.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 S) Accused's BIR-Returns Processing System Print-Out of Quarterly Value Added Tax (BIR Form No. 2SSO-Q) for the third24 and fourth25 quarter of 2008; and 6) Accused's Quarterly Value Added Tax Return (BIR Form No. 2SSO-Q) 26 for the second quarter of 2010. Plaintiff also presented the following witnesses in the course of the trial in the CTA First Division: 1) RO J aminola27 - who testified that she and her Supervisor RO Reyes investigated accused's tax liabilities for taxable years 2008 to 2010, sometime in September 2013; 2) RO Reyes 28 - who testified that he and RO Jaminola compared the gross income declared by accused in her 2008 and 2010 Quarterly VAT Returns as against the income paid to her for the same years as certified by the Provincial Government of Palawan, concluding that accused deliberately failed to supply correct and accurate information in her Quarterly VAT Returns by substantially underdeclaring her gross income for said taxable years; 3) Edna R. l\!Ialigro 29 - who testified that she prepared the schedule of payments attached to the Certification dated December OS, 2013 issued by the Provincial Accountant of the Province of Palawan, which was based on their Journal Evtry Vouchers from the Electronic-New Government Accounting System of their office; 4) Arlene N. Sabellina30 - who testified that she was the one who issued the Certification dated December OS, 2013 summarizing the payments made by the Government of ;/ 24 Id, Exhibit "P-13", pp. 620-621. 25 Id, Exhibit "P-14", pp. 622-623. 26 Id, Exhibit "P-16", p. 626. 27 Id, Judicial-Affidavit (of May Q. Jaminola) (Exhibit "P-22") and Minutes of Hearing dated February 21, 2018, pp. 983-1002 and 1717-1719. 28 Id, Judicial-Affidavit (of Jose Maria F. Reyes) (Exhibit "P-26") and Order dated April 04, 2018, pp. 1005-1024 and 1764-1766. 29 Id, Judicial-Affidavit (of Edna R. Maligro) (Exhibit "P-24") and Minutes of Hearing dated March 21, 2018, pp. 1027-1037 and 1744-1746. 30 Id, Judicial-Affidavit (of Arlene N. Sabellina) (Exhibit "P-25") and Minutes of Hearing dated March 21, 2018, pp. 1149-1158 and 1744-1746.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 Palawan to Anilos Trading and Construction for TYs 2008 to 2010, which was based on their record of accounting entries for each transaction made by the government, including the disbursement vouchers, check number, official receipt number, and other supporting documents; and 5) Luzviminda S. I\costa31 - who testified that she issued a certified true copy of accused's Quarterly V1\T Returns for the second quarter ofTY 2010. Meanwhile, it was stipulated during the Pre-Trial Conference 32 that accused is (a) a registered taxpayer of Revenue District Office No. 36, Puerto Princesa City, Palawan assigned with Taxpayer Identification Number (TIN) 121-252-527-000, and (b) a sole proprietor, doing business under the trade name of Anilos Trading and Construction, a company engaged in the business of construction and sale of construction supplies. Based on the entirety of the evidence, the Court was able to infer two (2) key points. First, accused received payments for its construction services from the Provincial Government of Palawan during the subject taxable periods, as shown below: Payments Made to Anilos Trading and Construction by the Provincial Government of Palawan:33 Date e- Journal Docket Description Amount Due to BIR 5% 2% NGAs Entry Page /1.nilos Trading: 1st (Total 7% Withholding Expanded 25- JEV Voucher No. billing Solar Home Withholding Jul- Systems Dist Proj Tax VAT 2008 No. Exhibit 1784 Batch I Phase II Bgy Withheld) Taxon P-29-c Taradungan/Mendoza contractors 25- JEV- Roxas Jul- 2008- Exhibit Php1,269,954.19 Php88,896.79 Php63,497.71 Php25,399.08 2008 07- P-29-d 014500 1785 Anilos Trading: 1st 2,391,371.66 167,396.02 119,568.58 47,827.43 ]E\'- billing Solar Home 2008- .. Systems Dist Proj ,v' 07- 014504 -�� 31 Id, Judicial-Affidavit (of Luzviminda S. Acosta) (Exhibit "P-27") and Order dated April 04, 2018, pp. 1753-1757 and 1764-1766. 32 Id., Pre-Trial Order dated February 07, 2018, par. II. A., nos. 3 and 4, p. 1637. 33 Id, Attached Schedule of Payments to the Certification dated December 05, 2013 (Exhibit "P- 8-1"), pp. 589-591.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 Batch II Phase I Bgy Itangil Dumaran Anilos Trading: 1st JEV- billing Solar Home 2008- 25- 07- Systems Dist Proj Jul- 014521 2008 Exhibit Batch II Phase I Bgy P-29-e 1786 San Isidro Busuanga 2,452,842.56 171,698.98 122,642.13 49,056.85 I 9,054.62 i Anilos Trading: Full I ]E\'- payment Solar Home 2008- I 11- 08- Systems Dist Proj I Aug- 014743 2008 Exhibit Batch II Phase I Bgy I P-29-f 1787 Luac Culion 181,092.43 12,676.47 3,621.85 I ~\nilos Trading: Full payment Solar Home Systems Dist Proj JEV- Batch II Phase I Bgy 2008- 11- 08- Banuang Aug- 014747 Exhibit Daan/Buenavista 2008 P-29-g 1788 Co ron 360,077.34 25,205.41 18,003.87 7,201.55 "\nilos Trading: Full JEV- payment Solar Home 2008- 11- 08- Systems Dist Proj Aug- 014749 2008 Exhibit Batch II Phase I Bgy P-29-h 1789 San Isidro Busuanga 169,957.44 11,897.02 8,497.87 3,399.15 8,994.83 I "\nilos Trading: Full 3,597.93 JEV- payment Solar Home 2008- 11- 08- Systems Dist Proj Aug- 014751 2008 Exhibit Batch II Phase I Bgy P-29-i 1790 Galoc Cullion 179,896.64 12,592.76 ~\nilos Trading: Full ]E\T- payment Solar Home 2008- 14- 08- Systems Dist Proj Aug- 015005 2008 Exhibit Batch II Phase I Bgy P-29-j 1791 Itangil Dumaran 2,554,588.34 178,821.18 127,729.42 51,091.77 76,519.29 I ~\nilos Trading: Full 30,607.72 payment Solar Home JEV- Systems Dist Proj 2008- 14- 08- Batch I Phase II Bgy Aug- 015006 2008 Exhibit Taradungan/1\Iendoza JEV- P-29-k 20- 2008- 1792 Roxas 1,530,385.81 107,127.01 "\ug- 08- Exhibit 2008 015183 P-29-l "\nilos Trading: 1st 20- JEV- Exhibit billing Const School Aug- 2008- P-29-m 2008 08- Bldg Package A-08-18 015185 Exhibit 20- ]E\T- P-29-n 1793 Tavtay 2,313,914.83 161,974.04 115,695.74 46,278.30 Aug- 2008- 2008 08- Exhibit Anilos Trading: 1st 015188 P-29-o 20- billing Const School Aug- JEV- 2008 2008- Bldg Package A.-08-26 08- 015192 1794 Culion 1,452,508.50 101,675.60 72,625.43 29,050.17 Anilos Trading: 1st billing Const Day Care Center Package N-08- 1795 05 Roxas/San Vicente 1,076,236.84 75,336.58 53,811.84 21,524.74 .:-\nilos Trading: 1st billing Const HE Bldg Panacan Elem School 1796 Narra 1,579,763.60 110,583.45 78,988.18 31,595.27 "\nilos Trading: 1st JEV- billing Const School 2008- 20- 08- Bldg 2Storey I\ug- 015196 2008 Exhibit 6Classroom Princess P-29-p 1797 ... Urduja Narra 4, 791,654.48 335,415.81 239,582.72 95,833.09 /

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 ------- A.nilos Trading: 1st JEY- billing Canst School 2008- 22- 08- Bldg 2Storey "\ug- 015389 2008 JEV- Classroom Poblacion 2008- 22- 08- NA NA Narra 3,765,940.94 263,615.87 188,297.05 75,318.82 Aug- 015395 828,873.57 2008 JEY- Anilos Trading: 1st 929,816.63 16,577.47 ! 2008- 22- 08- billing Canst School 377,007.58 18,596.33 Aug- 015412 2008 Exhibit Bldg Package A-08-03 614,536.18 7,540.15 ]E\'- 1,022,395.84 22- 2008- P-29-:9_ 1798 Roxas 58,021.15 41,443.68 I Aug- 08- 420,317.57 015419 Anilos Trading: 1st 472,049.07 I 12,290.72 2008 879,735.96 I JEV- billing Canst School 948,600.81 I 29- 2008- 2,130,709.76 20,447.921 "\ug- 08- Exhibit Bldg Package A-08-02 Php34,694,228.57 2008 015584 I JEY- P-29-r 1799 Roxas 65,087.16 46,490.83 29- 2008- 8,406.35 Aug- 08- "\nilos Trading: 1st 2008 015585 9,440.98 JEV- billing Canst School 30- 2008- 17,594.72 Sep- 09- Bldg Package 5-08-07 2008 016392 I JEV- Exhibit Bgy 30- 2008- i\ I atangule /Marabon 18,972.02 i Sep- 09- 2008 016394 P-29-s 1800 Balabac 26,390.53 18,850.38 i JEV- 30- 2008- "\nilos Trading: 1st 42,614.20 Sep- 09- 2008 016403 billing Coast School ]E\'- 30- 2008- Bldg Package N-08-07 Sep- 09- 2008 016405 Bgy New 30- JEV- Exhibit Barbacan/N ew Sep- 2008- 2008 09- P-29-t 1801 Cuyo/San Isidro 43,017.53 30,726.81 016416 71,567.71 51,119.79 _\nilos Trading: 1st billing Const School Exhibit Bldg Package A-08-01 P-29-u 1802 Roxas "\nilos Trading: 1st billing Const HE Bldg Exhibit San Jose Nat! High P-29-v 1803 School Roxas 29,422.23 21,015.88 "\nilos Trading: 2nd billing Canst School Exhibit Bidg Package A-08-03 P-29-w 1804 Roxas 33,043.43 23,602.45 61,581.52 43,986.80 "\nilos Trading: 2nd billing Canst School Exhibit Bldg Package A-08-01 P-29-x 1805 Roxas "\nilos Trading: 2nd billing Canst School Exhibit Blog Package "\-08-02 P-29-y 1806 Roxas 66,402.06 47,430.04 Anilos Trading: Full payment Maint/Rehab Provl Exhibit Rds Package N-08-05 P-29-z 1807 El Nido 149,149.68 106,535.49 Total for third quarter ofTY 2008 Phpl, 734,711.43 Anilos Trading: 2nd JEV- billing Canst School 2008- 7- 10- Bldg 2Storey Oct- 018308 2008 ]E\'- Exhibit 6Classroom Poblacion 2008- P-29-aa 7- 10- 1808 Narra Php2,972,323.17 Php208,062.62 Php148,616.16 Php_59,446.46 Oct- 018313 Exhibit 1809 2008 P-29-bb Anilos Trading: 2nd billing Canst HE Bldg Panacan Elem School Narra 3!_1_,665. '!�__ 21,81~.58 L5,583.27 6,233.~1 --~ -- - - ~

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 Anilos Trading: 2nd jE\T- billing Const School 2008- 7- 10- Bldg 2Storey Oct- 018316 2008 jE\7- Exhibit 6Classroom Princess 2008- P-29-cc 7- 10- 1810 Urduja Narra 1,64 7,131.23 115,299.19 82,356.56 32,942.62 Oct- 018320 Exhibit 1811 2008 JEV- P-29-dd 1812 Anilos Trading: 2nd 2008- 1813 7- 10- Exhibit billing Const School Oct- 018413 P-29-ee 2008 Bldg Package N -08-07 JEY- Exhibit 8- 2008- P-29-ff Roxas 135,601.88 9,492.13 6,780.09 2,712.04 Oct- 10- 2008 018512 Anilos Trading: 2nd billing Const Day Care Center Package N-08- 05 Roxas/San Vicente 1,345,296.06 94,170.72 67,264.80 26,905.92 Anilos Trading: 2nd billing Const School Bldg Package A-08-18 Taytay 1,851,131.87 129,579.23 92,556.59 37,022.64 Anilos Trading: 2nd billing Const School JEY- Bidg Package 5-08-07 2008- 10- 10- Bgy Oct- 018557 2008 jE\T- Exhibit J\Ia tangule /Marabon P-29-gg 10- 2008- 1814 Balabac 565,511.37 39,585.80 28,275.57 11,310.23 Oct- 10- Exhibit 1815 82,978.55 2008 018614 P-29-hh 1816 /\nilos Trading: 1st I 16- JEY- Exhibit billing J\Iaint/Rehab I Oct- 2008- P-29-ii I 2008 10- Provi Rds Package N- 018851 33,191.42 08-01 Roxas 1,659,571.00 116,169.97 "-\nilos Trading: Full payment Const HE Bldg Panacan Elem School Narra 210,158.79 14,711.12 10,507.94 4,203.181 ~\nilos Trading: Full ; JEY- payment 2008- 29- 10- J\Iaint/Rehab Provi Oct- 018925 2008 Exhibit Rds Package N-08-01 P-29-jj 1817 Roxas 1,659,571.00 116,169.97 82,978.55 33,191.42 ~\nilos Trading: Full JEY- payment 2008- 29- 10- J\Iaint/Rehab Provi Oct- 018926 2008 Exhibit Rds Package S-08-02 JEV- P-29-kk 14- 2008- 1818 Narra 3,367,026.40 235,691.85 168,351.32 67,340.53 Nov- 10- Exhibit 1819 73,466.94 I 2008 019144 P-29-ll 1820 "\nilos Trading: 1st JEV- 1821 29,386.78 2- 2008- Exhibit 1822 billing .:\faint/Rehab Dec- 10- P-29- 2008 019595 mm Provi Rds Package S- 4- JEY- Exhibit 08-01 Aborlan/Narra 1,469,338.80 102,853.72 Dec- 2008- P-29-nn 2008 10- �\nilos Trading: 3rd 019930 Exhibit 4- P-29-oo billing Const HE Bldg Dec- JEY- 2008 2008- San Jose Natl High 10- 019934 School Roxas 420,317.57 29,422.23 21,015.88 8,406.35 ~\nilos Trading: 1st billing Const School Bldg Package A-08-35 Cuyo 1,478,459.32 103,492.15 73,922.97 29,569.19 Anilos Trading: 1st billing Const School Bldg Package A-08-36 "\gutaya 2,338,952.10 163,726.65 116,947.61 46,779.04 "\nilos Trading: 3rd JEY- billing Const School 2008- 4- 10- Bldg 2Storey Dec- 019941 2008 Exhibit 6Classroom Princess P-29-pp 1823 Urduja Narra 673,826.41 47,167.85 33,691.32 p 13,476.53

DECISION ON THE CIVIL ASPECT 0-599, 0-603 &0-604 4- _TE\'- Exhibit 1824 1\nilos Trading: 2nd 105,079.40 7,355.56 5,253.97 2,101.59 Dec- 2008- P-29-qq billing Canst HE Bldg 42,509.50 2008 10- San Jose Nat! High 28,275.57 I 019946 School Roxas Anilos Trading: 1st I 8- _TE\T- Exhibit 1825 billing 850,190.00 59,513.30 Dec- 2008- P-29-rr J\Iaint/improvement I 17,003.80 2008 10- Junct J\Iainit Rd Brks I 020016 Pt Anilos Trading: 3rd I 8- JEY- Exhibit 1826 billing Canst School 565,511.37 39,585.80 I Dec- 2008- P-29-ss 1827 Bidg Package S-08-07 I 2008 10- Bgy 020018 J\Iatangule /Marabon I Balabac Anillos Trading: Full 11,310.23 payment 8- _TE\T- Exhibit i\Iaint/Improvement 212,547.50 14,878.33 10,627.38 4,250.95 . Dec- P-29-tt Junct i\Iainit Rd Brks 2008- Pt 2008 10- Anilos Trading: Full 020021 payment Canst School Bldg Package S-08-07 8- JEY- Exhibit 1828 Bgy 377,007.58 26,390.53 18,850.38 7,540.15 Dec- 2008- P-29-uu l\Iatangule /l\Iarabon 2008 10- Balabac 020025 Anilos Trading: 1st billing 8- JEV- Exhibit 1829 l\Iaint/improvement 1,253,841.30 87,768.89 62,692.07 25,076.83 Dec- 2008- P-29-vv 1830 Culandanum-Tarusan 23,139.15 2008 10- 1844 Rd Bataraza 462,782.97 32,394.81 I 020049 Exhibit 1845 /1.11ilos Trading: Full I 8- P-29-ww payment Canst School 9,255.66 Dec- JEV- Bldg Package .-\-08-18 2008 2008- Exhibit Ta,-tay 548,177.81 38,372.45 27,408.89 10,963.56 10- P-29-xx Anilos Trading: 3rd 16- 020052 billing Canst School 2,178,616.48 152,503.15 108,930.82 43,572.33 Dec- ]E\T- Exhibit Bldg Package N-08-07 15,137.94 2008 2008- P-29-yv Roxas I 10- .\nilos Trading: 2nd 16- 020204 billing Canst School 6,055.17 Dec- Bldg Package "-\-08-26 2008 JEV- Cull on 2008- .\nillos Trading: Full 10- payment 020207 J\Iaint/lmprovemcnt Culandanum-Tarusan 16- jE\T- Exhibit 1846 Rd Bataraza 302,758.70 21,193.11 Dec- 2008- P-29-zz 1847 Anillos Trading: 2nd 2008 10- 1848 billing Canst School 438,692.79 30,708.50 21,934.64 8,773.86 020208 Exhibit 1849 Bldg Fackage A-08-35 36,479.22 23- JEV- P-29-aaa 1850 Cuyo 729,584.37 51,070.91 23,081.17 I Dec- 2008- .\nilos Trading: 3rd 26,154.31 2008 10- Exhibit billing Canst School 461,623.42 32,313.64 14,591.69 I 020356 P-29- Bldg Package .-\-08-26 523,086.24 36,616.04 I 23- JEV- bbb Cullan Dec- 2008- Anilos Trading: 4th 9,212.471 2008 10- Exhibit billing Canst School 020380 P-29-ccc Bidg Package N-08-07 I 10,461.72 1 24- ]E\T- Exhibit Roxas Dec- 2008- P-29- ? 2008 10- ddd Anilos Trading: 3rd 24- 020439 billing Canst School Dec- 2008 JEV- 2008-

DECISION ON THE CIVIL ASPECT 0-599, 0-603 &0-604 10- Bidg Package "-\.-08-01 020444 Roxas Total for fourth quarter ofTY 2008 TOTAL forTY 2008 Php31,115,382.38 Php1,555,769.12 Php65,809,610.95 Php3,290,480.55 JEV- /ulilos Trading 3rd 2010- 19- 04- billing Const School Apr- 002709 2010 Exhibit Bldg Package "--\-08-02 JEV- P-29-zzz 22- 2010- 1872 Roxas Php2,113,219.63 Php147,925.37 Php105,660.98 Php42,264.39 Apr- 04- Exhibit 1873 2010 002712 P-29- Anilos Trading: Full aaaa payment Const School Bldg Package "--\-08-02 704,406.56 49,308.46 35,220.33 14,088.13 i Roxas I :\nilos Trading: Full JE\'- payment 2010- 15- 04- Exhibit i\Iaint/Rehab Provl Apr- 004703 P-29- 2010 bbbb Rds/Bridges Package 1874 S-10-02 Narra 730,178.85 51,112.52 36,508.94 14,603.58 "-\nilos Trading: Full JEV- payment Const Solar 2010- 20- 04- Exhibit Home Systems Dist "--\pr- 004957 P-29- 2010 ecce Proj Batch III Phase 1 1875 Bgy Biton Ta,�tay 581,396.28 40,697.74 29,069.81 11,627.93 17,821.00 Anilos Trading: Full I 22- JEV- Exhibit payment Const Solar ! 2010- P-29- Home Systems Dist "--\pr- 04- dddd 7,128.40 2010 005233 Proj Batch III Phase 1 I 1876 Bgy Isugod Quezon 356,420.00 24,949.40 Anilos Trading: 1st billing Const Solar ]E\'- Home Systems Dist 2010- 29- 04- Exhibit Proj Batch III Phase 1 .--\pr- 005582 P-29- 2010 eeec Bgy Culandanum 1877 Aborlan 1,915,384.85 134,076.94 95,769.24 38,307.70 "-\nilos Trading: 1st billing Const Solar _TE\T- Home Systems Dist 2010- 29- 04- Proj Batch III Phase 1 Apr- 005584 2010 Exhibit 1878 Bgy Bagong Bayan 2,251,146.49 157,580.25 112,557.32 45,022.93 P-29-ffff PPC "-\nilos Trading: 2nd ]E\'- billing i\Iaint/Rehab 2010- 5- 04- Exhibit Provl Rds/Bridges "--\pr- 005942 P-29- 2010 gggg Package N-10-04 1879 Tavtay 1,811,627.66 126,813.94 90,581.38 36,232.55 JEV- Anilos Trading: Full i 2010- payment 04- 4- 005856 Exhibit i\Iaint/Rehab Provl i\Iay- P-29- 2010 hhhh Rds/Bridges Package 1880 S-10-14 Narra 758,870.00 53,120.90 37,943.50 15,177.40 JEV- _Anilos Trading: Full payment 4- 2010- i\Iaint/Rehab Provi i\Iay- 04- Exhibit Rds/Bridges Package 2010 005859 P-29-iiii 1881 S-10-16 Narra 699,776.00 48,984.32 34,988.80 13,995.52 .--\nilos Trading: 1st 23,588.74 I 20,319.25 )E\'- billing i\Iaint/Rehab 9,435.50 2010- 4- 04- Provl Rds/Bridges I i\Iay- 005863 2010 Exhibit Package S-10-10 8,127.70 I 13- JEV- P-29-jjjj i\Iay- 2010- 1882 "--\borlan 471,774.81 33,024.24 ~ 2010 Exhibit 1883 406,385.00 28,446.95 P-29- Anilos Trading: Full kkkk payment i\Iaint/Rehab Provl

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 04- Rds/Bridges Package 006629 S-10-20 Brks Pt Anilos Trading: 1st )E\T- billing ~Iaint/Rehab 2010- 13- 04- Provl Rds/Bridges May- 006631 2010 Exhibit Fackage S-10-12 P-29-llll 1884 -:-\borlan 331,994.46 23,239.61 16,599.72 6,639.89 1885 447,864.19 8,957.28 A.nilos Trading: Full 317,955.54 6,359.11 516,089.51 10,321.79 jE\T- payment 466,342.15 9,326.84 2010- 1,464,506.24 29,290.12 25- 04- Exhibit 1\Iaint/Rehab Provl 007038 P-29- I ~Iay- tnmmtn Rds/Bridges Package 2010 S-10-10 Aborlan 31,350.49 22,393.21 ~-\nilos Trading: Full JEV- payment 2010- 25- 04- Exhibit ~Iaint/Rehab Provl May- 007040 P-29- 2010 nnnn Rds/Bridges Package 1886 S-1 0-12 ~-\borlan 22,256.89 15,897.78 "-\nilos Trading Full papnent Const Solar jE\T- Home Systems Dist 2010- 3- 04- Exhibit Proj Batch III Phase 1 Jun- 008032 P-29- 2010 Bgy Bagong Bayan 0000 1887 PPC 36,126.27 25,804.48 Anilos Trading: Full payment Const Solar .JEV- Home Systems Dist 2010- 3- 04- Exhibit Proj Batch III Phase 1 Jun- 008035 P-29- 2010 pppp Bgy Culandanum 1888 Aborlan 32,643.95 23,317.11 Anilos Trading: 1st billing Const Terminal JEV- Waiting 2010- 29- 04- Exhibit Shed/Landscaping Jun- 008770 P-29- 2010 Airport Compound qqqq 1889 Bancao-Bancao PPC 102,515.44 73,225.31 Php817,266.91 Total for second quarter ofTY 2009/TOTAL forTY 2009 Php16,345,338.22 Even accused impliedly admitted during her testimony34 that she received the above amounts from the Provincial Government of Palawan for services rendered by 1-\nilos Trading and Construction. She did not refute nor question the contents of the Certification issued by the Provincial Government of Palawan. Additionally, during trial she presented disbursement vouchers, certificates of final tax withheld at source (BIR Form No. 2306) and certificates of creditable withheld tax at source (BIR Form No. 2307) for the subject taxable periods which corroborate her receipt of the income payments.35 And second, accused did not declare all the payments of the Provincial Government of Palawan in her Quarterly VAT Returns for the third and fourth r quarters of 2008 and second quarter of 2010. 34 Id, Amended Judicial-Affidavit of Rebecca 5. Tiotangco (Exhibit "A-219") and Minutes of Hearing dated January 30, 2019, pp. 1987-2008 and 2032-2033. 35 Id, Exhibits "A-1"to "A-218", pp. 635-655, 669-737, 745-780, 791-820, 828-857 and 866- 904.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 Accused's Underdeclaration of Sales/Receipts: Quarterly Docket Per Quarterly Per Certification of U nderdeclaration VAT Return Page VAT Return Provincial of Sales/ No. Receipts Filed Government of Palawan (previous table) third Exhibit P-13 620-621 Php4,655,063.50 Php34,694,228.57 Php30,039,165.07 quarter 2008 Exhibit P-14 622-623 Php6,261,377.58 Php31,115,382.38 Php24,854,004.80 fourth quarter Exhibit P -16 626 Php6,3 74,325.35 Php16,345,338.32 Php9,971,012.97 2008 second quarter 2010 In this regard, this Court finds accused civilly liable for VAT resulting from her failure to supply correct and accurate information in her Quarterly VAT Returns for the third and fourth quarters of 2008 and second quarter of 2010. Credence is given to the evidence presented by the plaintiff as to the correct amount of accused's sales/receipts in the Certification36 dated December OS, 2013. To be deducted thereon are the sales/receipts declared by accused in her Quarterly VAT Returns 37 and the VAT withheld by the Provincial Government of Palawan found in the Journal Entry Vouchers38, disbursement vouchers, BIR Forms No. 2306 and BIR Forms No. 2307.39 Thus, the resulting basic deficiency VAT for 2008 and 2010 accused is liable for are as follows: 2008 2010 Underdeclared VATable Sales Php54,893,169.87 Php9,971 ,012. 97 VAT rate 12% 12% Total Output VAT 6,587,180.38 1,196,521.56 Less: Withheld VAT by Provincial (3,290,480.55) (817,266.91) Government of Palawan Basic Deficiency VAT Php3,296,699.84 Php379,254.65 36 Id, Exhibit "P-8", p. 588. r 37 Id, Exhibits "P-13", "P-14" and "P-16", pp. 620-621, 622-623 and 626. 38 Id, Exhibits "P-29" to "P-29-uuuu", pp. 1781-1830 and 1844-1893. 39 Id, Exhibits "A-1" to "A-218", pp. 635-655, 669-737, 745-780, 791-820, 828-857 and 866- 904.

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 WHEREFORE, premises considered, accused REBECCA S. TIOTANGCO is hereby ORDERED TO PAY the total amount of Php 12,669,618.14, for taxable years 2008 to 2010, inclusive of the 50% penalty imposed under Section 248 (B) of the NIRC of 1997, as amended, and twenty percent (20%) interest imposed under Sections 248(A) and 249 of the NIRC of 1997, as amended, respectively, computed until December 31, 2017, as follows: 2008 2010 Total Basic Tax Due I Php3,296,699.84 Php379,254.65 Php3,675,954.48 ~Add: 50% Surcharge I 1,648,349.92 189,627.32 1,837,977.24 20% Deficiency Interest from January 26, 2008 to December 31, 2017 {Php3,296,699.84 X 20% X 3628/365 dqyJj I 6,553,658.63 I I 6,553,658.63 20% Deficiency Interest from January 26, 2010 to December 31, 2017 [Pbp379,254.65 X 20% X 2897I 365 dqyJj 602,027.79 602,027.79 Total Amount Due, December 31,2017 Php11,498,708.39 Php1,170,909.75 Php12,669,618.14 In addition, accused Rebecca S. Tiotangco is ORDERED TO PAY the delinquency interest at the rate of twelve percent (12%), on the basic tax due in the amount of Php3,67 5,954.48, as determined above, computed from January 1, 2018 until full payment thereof pursuant to Section 249(C) of the Tax Code, as amended by RA No. 10963 and implemented by RR No. 21-2018. SO ORDERED. )iA' ~ ..-; '---- MA. BELEN M. RINGPIS-LIBAN Associate jttstice WE CONCUR: ~~Y.~~ CO.R(9YZON G. FER~~~RES Associate Justice ~

DECISION ON THE CIVIL ASPECT 0-599, 0-603 & 0-604 ATTESTATION I attest that the conclusions in the above decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court. QN. ~ -/1'- MA. BELEN M. RINGPIS-LIBAN Associate jttstice Chai1person CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court. ~.~A- MA. BELEN M. RINGPIS-LIBAN Acting Presiding Justice