PEOPLE OF THE PHILIPPINES v. FELONILA Z. CALUAG, (438 Saluysoy, Meycauayan, Bulacan or 320 Violeta Street, Barangay Saluysoy, Meycauayan, Bulacan) AT-LARGE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY SPECIAL FIRST DIVISION PEOPLE OF THE PHILIPPINES, CTA Crim. Case Nos. 0-345, 0 - Plaintiff, 346, 0-347, and 0-348 -versus- For: Violation of Section 255 , paragraph 1, of the Tax Reform Act of 1997, as amended Members: DEL ROSARIO, P.J. , Chairperson. UY, and FELONILA Z. CALUAG, MINDARO-GRULLA, JJ. 438 Saluysoy, Meycauayan , Bulacan , or 320 Violeta Street, Promulgated: Baranggay Saluysoy, Meycauayan , Bulacan , FEB Accused . X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - AMENDED DECISION UY, J.: For resolution is accused's "MOTION FOR RECONSIDERATION" filed on September 20 , 2018 ,1 with plaintiff's "COMMENT and OPPOSITION (To the Accused's Motion for Reconsideration dated September 20, 2018)" filed on November 5, 2018.2 In the said Motion , accused prays for the reconsideration of the judgment with regard to her civil liability, in the Court's Decision dated September 5, 2018 , the dispositive portion of which reads: "WHEREFORE , in light of the foregoing , accused Felonila Z. Caluag is hereby ACQUITTED in CTA Crim. Case Nos. 0-345, 0-346, 0-347 And 0-348 for failure of the prosecution to prove her guilt beyond reasonable doubt. 1 Docket (Vol. III), pp. 2118 to 2138. 2 Docket (Vol. III), pp. 2141 to 2146.

AMENDED DECISION CTA Crim. Case Nos. 0-345, 0-346, 0-347 & 0-348 Page 2 of5 Accused Felonila Z. Caluag, however, is ORDERED TO PAY the total amount of Four Hundred Eleven Million Seven Hundred Two Thousand Five Hundred Pesos and Sixty Three Centavos (P411, 702,500.63) for taxable years 2006 to 2009, inclusive of the 25% penalty imposed under Section 248 (A) (1) of the NIRC of 1997, as amended , computed as follows: Taxable BASIC INCOME 50% Penalty TOTAL Date Year TAX DUE Prescribed for P22 ,921 ,146.73 P114 ,605 ,733.64 2006 P91 ,684,586.91 16,814,7 31.57 84 ,073,657 .84 Payment 2007 67,258 ,926 .27 27,710,530 .08 April 15, 2007 2008 14,894,091 .75 138,552,650.39 April 15, 2008 2009 110,842,120.31 74,470,458 .76 April 15, 2009 TOTAL 59 ,576,367.01 P82 ,340 ,500 .13 April 15, 2010 P411 ,702,500.63 P329 ,362 ,000 .50 In addition, accused Felonila Z. Caluag is ORDERED TO PAY the following deficiency and delinquency interest, computed in accordance with the provisions of Section 249 of the NIRC of 1997, in its original text and as amended by RA No. 10963 (TRAIN law), viz.: (a) Deficiency interest at the rate of twenty percent (20%) per annum on the basic deficiency income tax from the date prescribed for payment (as above identified) until December 31, 2017; (b) Delinquency interest at the rate of 20% per annum on the total amount of Four Hundred Eleven Million Seven Hundred Two Thousand Five Hundred Pesos and Sixty Three Centavos (P411, 702 ,500.63), and on the 20% deficiency interest which have accrued as stated in (a) hereof, computed from the date prescribed for payment (as above identified) until December 31, 2017; and (c) Delinquency interest at the rate of 12% on the total unpaid amount [basic taxes, surcharges, and interests computed on (a) and (b) above] from January 1, 2018, until the same is fully paid. SO ORDERED." In her Motion , accused argues that the prosecution was not able to prove any income, despite her own vague and equivocaltt

AMENDED DECISION CTA Crim. Case Nos. 0-345 , 0-346, 0 -347 & 0 -348 admissions. In addition, the BSP Certification relied upon was not validly authenticated and should not have been considered as evidence . In its Comment and Opposition, plaintiff counters that it is very unusual and absurd that accused argues that there were no transactions between her and the BSP. Aside from the documentary and testimonial evidence of the prosecution , accused herself admitted that she had several transactions with the BSP for taxable years 2006 to 2009, both in her testimony in open court and in her judicial affidavit. THE COURT'S RULING Accused 's Motion for Reconsideration lacks merit. After a careful examination and consideration of the accused's Motion for Reconsideration, it is noted that the arguments raised therein are mere reiterations of matters which have already been considered , weighed and resolved in the assailed Decision. Thus, We shall not belabor, in this Resolution , to repeat the disquisitions made therein. However, this Court resolves to modify the imposition of deficiency and delinquency interests in accordance with the recently promulgated Revenue Regulation (RR) No. 21 -2018, implementing Section 249 of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963. WHEREFORE, premises considered , the instant Motion for Reconsideration is hereby DENIED for lack of merit. Nevertheless, in view of the recently promulgated RR No. 21-2018, implementing Section 249 of the NIRC of 1997, as amended by RA No. 10963, the dispositive portion of this Court's Decision dated September 5, 2018 is hereby MODIFIED to read as�follows: "WHEREFORE , in light of the foregoing , accused Felonila Z. Caluag is hereby ACQUITTED in CTA Crim. Case Nos. 0-345, 0-346, 0-347 And 0-348 for failure of the prosecution to prove her guilt beyond reasonable doubt. Accordingly, Accused Felonila Z. Caluag , is hereby ORDERED TO PAY the total amount of One Billion Five Hundred Seventeen Million Four Hundred Twenty- Seven Thousand Seven Hundred Eighty-Five Pesos and Fifty-Three Centavos (P1,517,427,785.53), for ~

AMENDED DECISION CTA Crim. Case Nos. 0-345,0-346, 0-347 & 0-348 Page 4 of5 taxable years 2006 to 2009, inclusive of the 25% surcharge, and 20�/o deficiency interest and delinquency interest, respectively imposed under Sections 248(A}, and 249(8) and (C), of the NIRC of 1997, as amended RA No. 10963, computed until December 31, 2017, as follows: Taxable Year Total 2006 2007 2008 2009 Basic Tax Due P91 ,684,586.91 P67,258,926.27 P11 0,842,120.31 t-59,576,367.01 P329,362,000.50 25% Surcharge 22,921 '146.73 16,814,731.57 27,710,530.08 14,894,091.75 82,340,500.13 114,605,733.64 84,073,657.84 138,552,650.39 74,470,458.76 411,702,500.63 Sub-Total 141,972,954.85 90,661,347.19 127,240,680.58 56,475,131.47 141,972,954.85 Add: 20% Deficiency P256,578,688.49 P17 4, 735,005.03 P265, 793,330.96 t-130,945,590.23 Interest 54,608,847.11 40,060,522.11 90,661,347.19 April 16, 2007 to January 66,019,388.92 35,484,663.53 9, 2015 152,822,484.60 104,075,041.35 127,240,680.58 (91 ,684,586.91 X 20% X P464,01 0,020.20 flt318,870,568.49 158,310,877.13 77,993,346.07 2826/365) P490, 123,597.01 P244,423,599.83 56,475,131.47 Apri116, 2008 to January t-828,052,614. 71 9, 2015 (67,258,926.27 X 20% 54,608,847.11 x2460/365) 4o.o6o,522.11 I April16, 2009 to January 66,019,388.92 9,2015 35,484,663.53 (110,842,120.31 x20%x 2095/365) 152,822,484.60 April16, 2010 to January 104,075,041.35 9,2015 158,310,877.13 (59,576,367.01 X 20% X 77,993,346.07 1730/365) P1 ,517,427, 785.53 Total Amount Due, January 9, 2015 ~ Add: 20% Deficiency Interest- From January 10, 2015 to December 31, 2017 (1,087 Days) (91 ,684,586.91 X 20% X 1087/365) (67,258,926.27 X 20% X 1087/365) (11 0,842,120.31 X 20% X 1087/365) (59,576,367.01 X 20% X 1087/365) Add: 20% Delinquency Interest- From January 10, 2015 to December 31, 2017 (1 ,087 Days) (256,578,688.49 X 20% X 1087/365) (174,735,005.03 X 20% X 1087/365) (265,793,330.96 X 20% X 1087/365) (130,945,590.23 X 20% X 1087/365) Total Amount Due, December 31, 2017

AMENDED DECISION CTA Crim. Case Nos. 0-345,0-346,0-347 & 0-348 Page 5 of5 In addition, accused Felonila Z. Caluag is ORDERED TO PAY the delinquency interest at the rate of twelve percent (12�/o), on the total unpaid amount as of January 9, 2015 in the amount of P828,052,614.71, as determined above, computed from January 1, 2018 until full payment thereof pursuant to Section 249(C) of the NIRC of 1997, as amended by RA No. 10963, and as implemented by RR No. 21-2018. SO ORDERED." SO ORDERED. � ER~P.UY Associate Justice WE CONCUR: (With Concurring anc}J1issenting Opinion) ~N.M~~-b~ ROMAN G. DEL ROSARIO CIELITO N. MINDARO-GRULLA Presiding Justice Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Amended Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. Presiding Justice

REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY SPECIAL FIRST DIVISION PEOPLE OF THE PHILIPPINES, CTA Crim. Case Nos. 0-345, 0- Plaintiff, 346, 0-347, and 0-348 For: Violation of Section 255, paragraph 1, of the Tax Reform Act of 1997, as amended -versus- Members: FELONILA Z. CALUAG, DEL ROSARIO, P.J., Chairperson, UY, and 438 Saluysoy, Meycauayan, MINDARO-GRULLA, JJ. Bulacan, or 320 Violeta Street, Promulgated: Baranggay Saluysoy, Meycauayan, Bulacan, X----------------------------------A--c--c-u--s-e--d-~------------------------- ~~-~~---------X CONCURRING AND DISSENTING 0 DEL ROSARIO, P.J.: I reiterate my Concurring and Dissenting Opinion on the Decision dated September 5, 2018, albeit with MODIFICATION as to the computation of deficiency and delinquency interests which should be computed pursuant to Revenue Regulations (RR) No. 21-2018 dated September 14, 2018. 1 Thus, I VOTE to: 1. DENY the Motion for Reconsideration filed by accused for lack of merit; and, 2. ORDER accused Felonila Z. Caluag TO PAY the total amount of One Billion Seven Hundred Eighteen Million()~"? 1 Implementing Section 249 (Interest) of the National Internal Revenue Cage of 1997, as amended by Section 75 of Republic Act No. 10963.

CONCURRING AND DISSENTING OPINION CTA Crim. Case Nos. 0-345, 0-346, 0-347 & 0-348 Six Hundred Twenty-Eight Thousand Two Hundred Sixteen Pesos and Eighteen Centavos (t-1,718,628,216.18), for taxable years 2006 to 2009, inclusive of the 50% surcharge, and 20% deficiency interest and delinquency interest, respectively imposed under Sections 248(8), and 249(8) and (C), of the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963, computed until December 31, 2017, as follows: Taxable Year 2006 2007 2008 2009 Total 329,362,000.50 Basic Deficiency Tax p 91,684,586.91 67,258,926.27 110,842,120.31 59,576,367.01 164,681,000.25 Add: 50% Surcharge 45,842,293.46 33,629,463.14 55,421,060.16 29,788,183.51 141,972,954.85 Deficiency Interest from 4/16/2007 to 01/09/2015 90,661,347.19 (tt91,684,586.91 x 20% x 2,826/365 days) 141,972,954.85 127,240,680.58 Deficiency Interest from 4/16/2008 to 01/09/2015 56,475,131.47 910,393,114.84 (tt67,258,926.27 x 20% x 2,460/365 days) 90,661,347.19 Deficiency Interest from 4/16/2009 to 01/09/2015 (P110,842, 120.31 X 20% X 2,095/365 days) 127,240,680.58 Deficiency Interest from 4/16/2010 to 01/09/2015 ~59,576,367.01 x 20% x 1,730/365 days) 56,475,131.47 Total Amount Due, January 9, 2015 p 279,499,835.22 191,549,736.60 293,503,861.04 145,839,681.98 Deficiency Interest p 54,608,847.11 54,608,847.11 From 111012015 to 12/31/2017 40,060,522.11 (P91,684,586.91 x 20% for 1,087/365 days) 40,060,522.11 66,019,388.92 (P67,258,926.27 x 20% for 1,087/365 days) 35,484,663.53 (P110,842, 120.31 x 20% for 1,087/365 days) 66,019,388.92 (P59,576,367.01 x 20% for 1,087/365 days) 35,484' 663.53 Delinquency Interest ,. 223,753,018.77 223,753,018.77 From 1/10/2015 to 12/31/2017 (tt279,499,835.22 x 20% x 1,087/3.65 days) 153,344,748.04 153,344,748.04 (tt191,549,736.60x 20% x 1,087/365days) (P293,503,861.04 X 20% X 1,087/365 days) 234,963,912.87 234,963,912.87 (P145,839,681.98 X 20% X 1,087/365 days) Total Amount Due, December 31, 2017 86,864,511.95 86,864,511.95 p 557,861,701.10 384,955,006.75 594,487,162.82 268,188,857.46 1,718,628,216.18 3. ORDER accused Felonila Z. Caluag TO PAY the delinquency interest at the rate of twelve percent (12�/o) on the total unpaid amount as of January 9, 2015 in the amount of t-910,393, 114.84 as determined above, computed from January 1, 2018 until full payment thereof pursuant to Section 249(C) of the NIRC of 1997, as amended by RA No. 10963, and as implemented by RR No. 21-2018. Presiding Justice CERTIFIED IRUE COPY