PEOPLE OF THE PHILIPPINES v. F.T SUMALDE CARGO SYSTEM, INC., ROMEO A. SUMALDE AND FELOMIDEZ T. SUMALDE (Room 305 STP Bldg., Marquina corner Dasmarinas St., Binondo, Manila, 1006) At -Large

Republic of the Philippines COURT OF TAX APPEALS Quezon City S ECOND DIVISION PEOPLE OF THE PHILIPPINES, CTA CRIM. CASE No. 0-736 Plaintiff, Members: -versus- CASTANEDA, JR., Chairperson, MINDARO-GRULLA, , and F.T. SUMALDE CARGO SYSTEM BACORRO-VILLENA, JJ. INC., ROMEO A. SUMALDE and FELOMIDEZ T. SUMALDE, Promulgated: JUN 16 2020 ~3 : n Accused. .:::::::... x-----------------------------------------------------------------,x.� . RESOLUTION For the Court's resolution is accused's Motion to Dismiss, filed on March 3, 2020, without comment from plaintiff. Accused manifested that in relation to his pending case before this Court for violation of Section 255 of the National Internal Revenue Code (NIRC) in relation to Sections 256 and 253(B) of the same Code, he availed of the tax amnesty for tax delinquencies pursuant to Section 17 of Tax Amnesty on Delinquencies (Title IV) of Repub lic Act (RA) No. 112131 or the Tax Amnesty Act, to wit: "Section 17. Coverage. - There is hereby authorized and granted a tax amnesty herein called 1 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 2017 and Prior Years with Respect to Estate Tax, other Internal Revenue Taxes, and Tax on Delinquencies XXX XXX XXX Section 1. Short Title . - This Act shall be known as the "Tax Amnesty Act".

RESOLUTI ON Page 2 of 6 CTA Crim . Case No. 0-736 People ofthe Philippines vs. FT. Sumalde Cargo System Inc., Romeo A. Sumalde and Felomidez T. Sumalde the Tax Amnesty on Delinquencies, which shall cover all national internal revenue taxes such as, but not limited to, income tax, withholding tax, capital gains tax, donor's tax, value-added tax, other percentage taxes, excise tax and documentary stamp tax collected by the Bureau of Internal Revenue, including value-added tax and excise taxes collected by the Bureau of Customs for taxable year 2017 and prior years. For purposes of this Act, the Tax Amnesty on Delinquencies may be availed of in the following instances: (b) Pending criminal cases with the Department of Justice or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the National Internal Revenue Code of 1997, as amended, with or without assessments duly issued; XXX XXX XXX" This is reiterated in Section 3 of Revenue Regulations ( RR) 4 - 2019, 2 which provides: " SECTION 3. COVERAGE. All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of Ta x Amnesty on Delinquencies within one (1) year from the effectivity of these Regulations, under any of the following instances: XXX XXX XXX B. With pend ing criminal cases with the DOJ/Prosecutor's Office or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code, as amended, with or without assessments duly issued; 2 I mpleme nti ng Ru les and Regul ations of Republ ic Act No. 11213, Otherwise Know n as t he "Tax Amnesty Act", Prov iding for th e Guidelines on the Processing of Tax Amnest y Application on Tax Delinquencies.

RESOLUTION Page 3 of 6 CTA Crim . Case No. 0-736 People of the Philippines vs. F T. Sumalde Cargo System Inc., Romeo A. Sumalde and Felomidez T. Sumalde XXX XXX XXX" To avail the tax amnesty, the taxpayer must submit the originals or certified true copies of the documentary requirements enumerated in Section 5 of RR 4-2019, as follows: 1. Tax Amnesty Return (TAR) xxx, completely and accurately accomplished and made under oath; 2. Acceptance Payment Form (APF) (BIR Form No . 0621-DA, xxx) duly validated by the Authorized Agent Banks (AABs) or APF duly stamped "received" with accompanying bank deposit slip duly validated by the concerned AABs or Revenue Official Receipt (ROR) issued by the Revenue Collection Officers (RCOs); 3. Certificate of Tax Delinquencies/Tax Liabilities issued by concerned BIR offices xxx; and 4. In case of applications under Section 3(A)(2)3 of these Regulations, a copy of the assessment found in the FAN/FDDA xxx Accused prays for the dismissal of the instant case based on his availment of the amnesty for tax delinquencies. In support of his motion, accused attached the following documents: 1. Original copy of the APF, duly validated by the AAB, stamped "received" with accompanying bank deposit slip; 2. Original Receiving copy of TAR, completely and accurately accomplished and made under oath; and 3. Certificate of Tax Delinquencies. The Tax Amnesty on Delinquencies (Title IV) of the Tax Amnesty Act covers all national internal revenue taxes for taxable year 2017 and prior years. Section 18 thereof provides that any person may enjoy the immunities and privileges of the Tax Amnesty on Delinquencies and pay the following tax amnesty rates: 3 Delinquent Withholding Tax liabilities arising from non-withholding of tax.

RESOLUTIO N Page 4 of 6 CTA Crim. Case No. 0-736 People ofthe Philippines vs. F T. Sumalde Cargo System Inc., Romeo A. Sumalde and Felom1dez T. Sumalde "(c) Pending criminal cases with criminal information filed with the Department of [J]ustice or the courts for tax evasion and other criminal offenses under Chapter II of Title X and Section 275 of the National Internal Revenue Code of 1997, as amended, with assessments duly issued and otherwise excluded in Titles II and III hereof xxx 60�/o of the basic tax assessed ." Section 19 states where and when to file and pay: "Section 19. Availment of the Tax Amnesty on Delinquencies; When and Where to File and Pay. -Any person, natural or juridical, who wishes to avail of the Tax Amnesty on Delinquencies shall, within one (1) year from the effectivity of the Implementing Rules and Regulations of this Act, file with the appropriate office of the Bureau of Internal Revenue, which has jurisdiction over the residence or principal place of business of the taxpayer, a sworn Tax Amnesty on Delinquencies Return accompanied by a Certification of Delinquency. The payment of the amnesty tax shall be made at the time the Return is filed : Provided, That the Revenue District Officer shall issue and endorse an Acceptance Payment Form, in such form as may be prescribed in the Implementing Rules and Regulations of this Act authorizing the authorized agent bank, or in the absence thereof, the revenue collection agent or municipal treasurer concerned, to accept the amnesty tax payment: Provided, further, That the availment of the Tax Amnesty on Delinquencies and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil or administrative liability on the part of the availing taxpayer." In relation to the above, RR 4-2019 took effect on April 24, 2019. Hence, taxpayers who wish to avail of the tax amnesty may do so within one (1) year from the said effectivity date. Based on records, accused availed of the tax amnesty on delinquencies pursuant to the provisions above on January 14, 2020, well within the one-year period.

RESOLUTION Page 6 of 6 CTA Crim. Case No. 0-736 People ofthe Philippines vs. F. T. Sumalde Cargo System Inc., Romeo A. Sumalde and Felomidez T. Sumalde sufficiently prove that accused paid P695,373.06 equivalent to 60�/o of the basic deficiency income tax. With the accused's compliance with the conditions laid down by the law and its implementing rules and regu lations, in availing of the tax amnesty on delinquencies, the Court is mandated by law to terminate and deem as closed the instant criminal case. WHEREFORE, premises considered, accused's Motion to Dismiss is GRANTED . Accordingly, with accused's availment of the tax amnesty on delinquencies pursuant to Republic Act No. 11213, otherwise known as the Tax Amnesty Act, the instant case titled People of the Phi lippines vs. F.T. Sumalde Cargo System Inc., Romeo A. Sumalde and Felomidez T. Sumalde, docketed as CTA Crim. Case No. 0- 736 is hereby TERMINATED and DEEMED AS CLOSED. S O ORDERED . ~~ c_ ~~/~� JfiANITO C. CASTANEDA, JR. Associate Justice ~~-M~�~,b~ CIELITO N. MINDARO- GRULLA Associate Justice '" JEAN MARIE A