Cta 2D CV 08375 D 2014aug01 Ass PDF
Cta 2D CV 08375 D 2014aug01 Ass PDF
Cta 2D CV 08375 D 2014aug01 Ass PDF
SECOND DIVISION
COMMISSIONER OF Promulgated:
INTERNAL REVENUE,
AUG 01 2014~
Respondent.
17 J.'l.f , . ,. .
X- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - X
DECISION
COTANGCO - MANALASTAS,~ :
I Docket, pp . 10 35 .
2 Exhibit "BI3" .
.1 Exhibits "BB-8" & "I3I3- 10"
DECISION
CT./\ Case No . 8375
Village-Green Hog Farm, Inc. us CIR Page 2 of 10
STATEMENT OF FACTS
4 Par. 1, Joint. Stipulation of Facts and Simplification of Issues (JSFSI), docket., p . 200.
s Par. 2, JSFSI, docket., p . 201.
6 Exhibit "D".
7 Exhibit "E".
s Exhibit "F".
9 Exhibit "G".
1o Exhibit "H"
11 Exhibit "I"
DECISION
CT/\ Case No. 8375
Village-Green Hog Fa rm, Inc. vs CIR Page 3 of!IO
12 Exhibit "K".
13 Exhibit "L".
14 Exhibit "0 ".
DECIS ION
CTJ\ Case No. 8375
Village-Green Hog Fa rm, Inc. us CIR Page IJ of IJ 0
31 Docket, p . 15
32 Docke t , pp. 16-18 .
33 Docke t, pp. 19-58.
34 Docket, p . 66.
35 Docket, pp . 200 2 11.
36 Docket , p. 212.
DECISION
CTJ\ Case No. 8375
Village-Green Hog Farm, Inc. us CIR Page 7 of !10
STATEMENT OF ISSUES
It has been held time and agatn that the "essence of due
process is found in the reasonable opportunity to be heard
and submit. any evidence one may have in support of one's
defense. What the law proscribes is the lack of opportunity to
be heard. As long as a party is given the opportunity to defend
his interests in due course, he would have no reason to
complain, for it is this opportunity to be heard that makes up
the essence of due process."41 ?--
Republic Act No . 8 4 2 4
XXX
(A) ~xpenses.-
42 BIR Ruling No. 02 7 01 d a ted June 2 0 , 2 001 , citing the cases of Zamora vs. Collector
(8 SCRA 163) and Visayan Cebu Termina l Co ., Inc . vs . Collector (180 Phil. 32 0)
ex pressly provide s tha t
43 Exhibit "D".
4 4 Exhibit "E".
4 5 Exhibit "F".
4 6 Exhibit "G".
47 Exhibit "H"
4 8 Exhibit "I"
DECISION
CT/\ Ca se No . 8375
Village-Green Hog Farm, Inc. us CIR Page 15 of IJO
s3 Exhibit "T3B".
54 Exhibit "llD-IJ" .
55 CJN. us. La Suerte Cigar and Cigarette Factory, et al. , CT/\ EB No . 820 , June 11 , 2012 .
DECISION
CT/\ Case No. 8375
Village-Green Hog Farm, Inc. vs CIR Page 19 of IJ 0
The option to wait for the final decision of the BIR on the
disputed assessment before appealing to this Court is
sanctioned both by the Tax Codc60 and jurisprudence. The
Supreme Court has held in Lascona Land, Co., Inc. us. CJR
that "in case the Commissioner failed to act on the disputed
assessment within the 180-day period from date of submission
of documents, a taxpayer can either: (1) file a petition for
review with the Court of Tax Appeals within 30 days after the
expiration of the 180-day period; or (2) await the final decision
of the Commissioner on the disputed assessments and appeal
such final decision to the Court of Tax Appeals within 30 days
after receipt of a copy or such decision."61 ~
5 6 Oceanic Wireless Network, Inc. vs. Commissioner of Internal Revenue, CTA EI3 No . 76,
June 22, 2006; a lso cited in Fil-Hispano Holdings Corporation vs. Commissioner of
Internal Revenue, CTA EB No. 3-13, June 12, 2008 .
57 Supra, Note 55.
58 S upra, Note 56.
59 Exhibit "HI-I".
60 Section 228 of the 1997 NIRC.
6t Lascona Land, Co., Inc. vs. CIN, G.l-?.. No . 171251, March 5, 2012 citing RCBC vs. CIR,
G.R. No . 168198, April21J, 2007, 522 SCRA liJIJ .
DECISION
CTJ\ Case No. 8 37 5
Village-Green Hog Farm, Inc. us CIR Page 2 0 of 10
Per
Per Financial returns I
Statements alpha list Difference
(/\) Expenses.
"We thus agree with the RTC 's ruling that said cash vouchers
though admitted in evid e nce, whether objected to or not, have no
probative value for being hearsay ."
v
docs not fall within the purview of Section 2.57.2(E) of RR No.
2 -98, as amended.
68 .E xhibit "LLLLLLLLLLLLLLLLLLLL".
69 Exhibits "MMMMMMMMMMMMMMMMMM" to "ZZZZZZZZZZZZZZZZZZZZZ";
"WWWWWWWWWWWWWWWWWWWWWWWWW''
''WWWWWWWWWWWWWWWWWWWWWWWWWW''.
70G .R. No. 187899, October 23, 2013.
DECISION
CTJ\ Ca se No . 8 375
Village-Green Hog Farm, Inc. us CIR Page 26 of -10
Claimed 50%
Cost of sales:
Deductions Disallowance
Inventory-
beginning P l8,506 ,363 .00
_Direc t farm in pu ts
27,404,323.00
Tota l !15,910,686.00 - -
• 13reedin g 13uildings 3
8.0mxl5.0m
• Gestating Buildings 4
8.0mx22.0m
• Farrowing 1.3uildings 8
8.0mx11.5m
• Gilt Building 1
8.0mx8.0m
• Weaning/ Nursery 1.3ldgs. 7
8.0mxl5.0m
• Growing Buidlings 3
8.0mx30.0m
• Finishing 1.3uildings 4
8.0mx30.0m
• Feed Mill &, Warehouse 1
16.0mx18.0m
• Maintenance 1.3uilding
8.0mxl6.0m
• Farm Office&, Storeroom 1
5.0mx15.0m
(3) xxx traced the Check Vouchers with the petitioner's 2007
J\udited Financial Statements."
1 . Cost of Sales
Properly
Expense Account Substantiated
- ~
"25.Q: xxx What is your basis for saymg that the alleged
unaccounted source of cash amount ing lo
Php86,372. 19 are valid business expe nses a nd
reclassified m the 2007 J\udited Financial
Statements'?
v
a nd Office Supplies /Mis c e llaneous for Professional
Fees . XXX
88 Exhibit "CC".
89 Exhibit "MM", Docket Vol. II, p. 115.
DECISION
CT/\ Case No . 8375
Village-Green Hog Farm, Inc. us CIR Page 36 of IJ 0
91 Exhibit "Bf3" , p. 2.
DECISION
CT/\ Case No . 8375
Village-Green Hog Farm, Inc. us CIR Page 38 of tJ 0
SO ORDERED .
~~- c: ~__./~
AMELIA R . COTANGCO-MANALASTAS
Associate ,J u sticc
WE CONCUR:
~cd-~a4/~ ·
J6AN£To C. CASTANEDif,' J R .
#
CAESAR A . CASANOVA
Associate ,J u sticc Associate J u sticc
DECISION
CT/\ Case No. 8375
Village-Green Hog Famt, Inc. us CIR Page -'1 0 of-'1 0
ATTESTATION
~~ C. a;T~o(p,~ ~.
JtrANITO c. CASTANEDA:, JR.
Associate Justice
Chairperson
CERTIFICATION
" UUUUUUUUUUUUUUUUUUUUUUUUUU 1" 2 Oct 07 1301 Ozone Line Hardware & Construction
Construction Supply materials 116. 00
3-0 cl -0/ /6683 Carman Electrical Shop Electrical
supplies 613. 00
- -- ~ ~
-
5 Oct 07 01 87 D.A.R. Mufflers Vehicle
maintenance 3~ 0 . 00
" I I I I I I I I I I I I I I I I I I I I 1-/" 6-0 cl- 0 / 146 /; On e unit
" I I I I I I II I II I I I I I I I I I I 1" 1557 Jaca la Metal Works Corporation concrete
b u~JCJY 3 700. 00
6-0 cl -0 / /044~6 Lito's Build er & Construction deformed bar
Supply 1 ,9 ~ 6. 00_
~
-- -
6 Oct 07 201159 Lito's Builder & Construction Sand
Supply 7 300 .00
19-0 cl - 1146 Masagana Auto Supply Vehicle repair
- --- --
07 --
785 .00
" UUUUUUUUUUUUUUUUUUUUUUUUUU 1" 22 Oct 7(199 Emil Auto Parts and El ectrical Submersible
01 Supply pump 3 600 .00
" UUUUUUUUUUUUUUUUUUUUUUUUUU~ " /~- Oc t- 1103 Emil Auto Parts and El ectrical Submersible
- ~~
-
07 Supply _ _pump - -
1,700. 00_
" UUUUUUUUUUUUUUUUUUUUUUUUUU 1" 27 Oct 71602 Tri Mark Construction Supply Construction
01 material 36.00
" UUUUUUUUUUUUUUUUUUUUUUUUUU1 " 6 Nov 07 01 98 D.A.R. Muffl ers Car repair
350.00
" UUUUUUUUUUUUUUUUUUUUUUUUUU~ " 6-Nov- 0 / 1 131 4 Galaxy Steel Consl. Suppl y Constructi on
material 100.00
- ~
-~
2. Power/Gasoline
1----c-- - - -
Exhibit
I Date
I
OR/Invoice
No.
I Payee I_ Amount
Power
" BBBBBBBBBBBBBBBBBBBBBBBBBB-4 " 1 //-Feb-0 / 1 060 / 4// 1 Ba l angas 11 Electric Cooperative, 1nc. I_
2 of 10
CTA Case No. 8375 ANNEX A
Village Green Hog Farm, Inc. vs. CIR
. ~- . -~
"DDDDDDDDDDDDDDDDDDDDDDDDDD2 " 16 Mar 07 06171H * Batan9as II Electnc Cooperative, Inc. 9HS .95
\'xxxxxxxxxxxxxxx 1,, -- - --
23 May 07 07SH112 Batan9as II Electric Cooperative, Inc. S1,073.90
" DDDDDDDDDDDDDDDDDD-1 " 71-Aug-0 / 0880913 Batangas 11 Electric Cooperative, 1nc. 47, 181 . 0~
-- -·-
~EEEEEEEEEEEEEEEEE 1" - 3 1 AU ~l 07 OHHH1HO Bat<mcJas II Electric Cooperative, Inc. 10,16S.10
" 111111111111111111 - 1 70-Nov-0/ ******* Satang as II Electric Cooperative, Inc. 47,689 .00
--- -
"JJJJJJJJJJJJJJJJJJ 1" 20 Dec 07 1016630 BatarHJas II Electric Cooperative, Inc. 1S,902.10
Subtotal P354,475.40
~-
-
Gasoline
71-Sep-0/
12722
47/73
Rico Shel l
Rico Shell
" 1S1.00
1,/1 6.0Q___
-
"WWWWWWWWWWWWWWWWWWWWWWWWWW 2" 1S Nov 07 6S12S
Petron Corporation 1 000 .00
"WWWWWWWWWWWWWWWWWWWWWWWWWW-7" 7 1-Nov-0/ 6~66 /
Pet.ron Corporation - ~
1,000.00
Subtotal
p 4,170.00
r-=- - - - f--
Total
P358,645.40 ~
4. Representation
Inc.
Total p 3,500.00
5. Office Supplies/Miscellaneous
3 of 10
CfA Case No. 8375 ANNEX A
Vil lage Green Hog Farm, Inc. vs. CIR
f-c,:,L-:-:
:-:- LL-:-L:-c
LL-:-
LLLLLLLLLLLLLLLLL-LL-L 1 ' - 28 Jun 07 21711 NS Ocana, Inc. 6.25
"LLLLLLLLLLLLLLLLLLLLLLLLLL 1" 21 Jun 07 211 ** NS Ocana, Inc. :n.75
"LLLLLLLLLLLLLLLLLLLLLLLLLL-4" 71 -Jun-O/ /1463 NS Ocana, Inc. 31 . /~
~LLLLLLLLLLLLLLLLLLLLLLLLL 1" 25 Jun 07 215** NS Ocana, Inc. 12.77
"LLLLLLLLLLLLLLLLLLLLLLLLLL-4" /3-Jun-0/ /1~36 NS Ocana, Inc. 4.00
l- ,::c-
,N-:-cN-c-N..,-,
N.,--
N'N-N
,.-,NNNNNNNNNNNNNNNNNNN 7" 9 Jul 07 22091 NS Ocana, Inc. 11 .75
"NNNNNNNNNNNNNNNNNNNNNNNNNN-/" /0-Jul-0/ //631 NS Ocana, Inc. 18./~
" 'NNNNNNNNNNNNNNNNNNNNNNNNNN 7" 21 Jun 07 oon Gilid nCJ Eskwela Gen. Mdse. 181 .00
"NNNNNNNNNNNNNNNNNNNNNNNNNN-/" /~-Jul-0/ //801 NS Ocana, Inc. 1~0 . 00
1--;;-NNNNNNNNNNNNNNNNNNNNNNNNNN 7" 17 Jul 07 0158 Gilid nCJ Eskwela Gen. Mdse. 120.00
/1 -Aug-0/ /3//~ NS Ocana, Inc. /49.00
1-- -
30 AUCJ 07 21026 NS Ocana, Inc. 3.75
1-Sep-0/ /410/6 NS Ocana, Inc. 1.~ 0
Communication
~'-'z_z_z_
zz_z_z_z_
zz_z_z_z_
zz_z_z_z_
zz_z_z_z_z_8_"____________~___6_J_a_n _o_7__~___1_o_L 1_ ___L_*_**_L_e_ir_lE_I_ec_:tr_o_n_ic_s _c_or_p_. _________L__P____8_
5:-_,._oc~
J ~
4 of 10
CTA Case No. 8375 ANNEX A
Village Green Hog Farm, Inc. vs. CIR
- - -
"EEEEEEEEEEEEEEEEEEEEEEEEEE 9" 28 Mar 07 019 Mari's Loadinq 'N Celfone Accessories 295.00
Center
"LLLLLLLLLLLLLLLLLLLLLLLLLL 5" 29 May 07 17"10 Zaide TradincJ 290.00
"LLLLLLLL LLLLLLLLLLLLLLLLLL-~ " 1~-Jun-O/ 149/8 *** /9~ . 00
--~-
Subtotal p 1,735.00
--- ·- - --- -
Transportation
"SS-/" /3-Feb-0/ 08~1 Jhon & Jhon Farms r 3,000.00
---
~EEEEEEEEEEEEEEEEEEEEEE-1 0"- 1/-Mar-0/ / 40788 Joyselle Express, Inc. 10.00
- ---
~EEEEEEEEEEEEEEEEEEEEEEEE 10" 12 Mar 07 7"10289 Joyselle Express, Inc. 10.00
"GGGGGGGGGGGGGGGGGGGGGGGGGG-8" 19-Apr-0/ 060/14 *** 1.00
- - --
"GGGGGGGGGGGGGGGGGGGGGGGGGG 8" 19 Apr 07 253218 Cher Transport 9.00
"GGGGGGGGGGGGGGGGGGGGGGGGGG-8" 19-Apr-0/ 6093/6 Mayamy Transport 10.00
---- ---
6 Jul 07 275999 Marlea Transport "1.00
6 Jul 07 2756000 Marlea Transport "1 .00
6-Jul-0 / 7/~998 Marlea Transport 4.00
- -- ---
6 Jul 07 751622 MLI 10.00
16-Aug-0/ 039067 *** 6.00
-- ~---- - --
16 Auq 07 8"15236 P.C.L. Transport 10.00
16-Aug-0/ 039061 *** 6.00
--- - ---
Subtotal p 3,084.00
-- --- -
Miscellaneous
~ -
6. Insurance/Fees/Other Charges
----
Exhibit I Date I OR No. I Payee ~ -Amount
Other Charges
-- - ---
" IIIIIIIIIIIIII IIIIIIIIIII 2" 8 Auq 07 "12"1"1 Uqnayan Security Acwncy, Inc. p 10,000.00
"LLLLLLLLLLLLLLLLLLLLLLLLL 2" 1"1 Sep 07 "l :n7 Uqnayan Security A\wnc:y, Inc. 10,000.00
"MMMMMMMMMMM MMMMMMMMMMMMMM -/" 30-Aug-0/ 4798 Ugnayan Security Agency, Inc 10,000.00
- -- - -
"0000000000000000000000000 2" 26 Sep 07 "1390 U\Jnayan Security Acwncy, Inc. 9,250.00
"RRRRRRRRRRRRRRRRRRRRRRRRR-1 " 1 /-Oct-O/ 4436 Ugnayan Security Agency, Inc 6,000 .00
Sales Invoice/
Official Receipt
Exhibit Date Number Supplier Amount
"SS-/" /f/3/01 08~1 JHON & JHON FARMS INC. p 100,000.00
5 of 10
CTA Case No. 8375 ANN EX A
Village Green Hog Farm, Inc. vs. CIR
"XX 1 11
1/1/07 20718 MAYERVET DISTRIBUTION 1022.60
"QQQ-7" 3/76/ 0/ 4/4~8 PHILIPPINE SUPER FEED CORP. 473 6/1 .00
6 of 10
CTA Case No. 8375 ANNEX A
Village Green Hog Farm, Inc. vs. CIR
7 of 10
erA Case No. 8375 ANNEX A
Village Green Hog Farm, Inc. vs. CIR
"UUUUUUUU 1" H/21/07 137'.i2 PHILIPPINE ASSOCIATION OF HOG RAISERS INC. 3'.i,OOO.OO
"WWWWWWWW-1" 6/17/01 084':> TRI-GEM MARKETING 14,400.00
"YYYYYYYY -1 " 6!9/01 1303 RNT ENTERPRISES, INC. 4 7':>0.00
"GGGGGGGGG 1" 6/12/07 011'.i6 NUTRITECH VENTURES INC. 117 '.iOO .OO
"HHHHHHHHH-1" 6/19/01 4671 BROADCHEM CORPORATION 74,':>00 .00
"111111111 -1" 6/1 '::J/01 084 1 TRI-GEM MARKETING 36 000 .00
"KKKKKKKKK 1" 6/13/07 32'.i2 CASTLE MARKETING 10,396.00
"MMMMMMMMM-1" I / 13/ 01 36894 LA FILIPINA UYGONGCO CORP 73,400.00
8 of 10
CTA Case No. 8375 ANNEX A
Village Green Hog Farm, Inc. vs . CIR
"GGGGGGGGGGG 1" 9/18/07 212083 PREMIUM AGRO VET PRODUCTS INC. 13 750.00
''YYYYYYYYYYY 1 II
8/19/07 6712 JAPS VETERINARY CLINIC & VETERINARY SUPPLY 950.00
" FFFFFFFFFFFF 2" 12/ 17/07 13771 PHILIPPINE ASSOCIATION OF HOG RAISERS, INC. 26,250.00
"I I I I I I I I I I I I I 1" 9/27/07 212392 PREMIUM AGRO VET PRODUCTS INC. 18,000.00
"VVVVVVVVVVVVV-1 " 11/4/ 01 ~164/ PHILIPPINE SUPER FEED CORP. ~4/,640 . 00
" DDDDDDDDDDDDDD-1" I 0/4/0/ /4/46/ PREMIUM AGRO VET PRODUCTS INC. 113h00
"MMMMMMMMMMMMMM-4" 11 / /1 / 0/ ~664
9 of10
CTA Case No. 8375 ANN EX A
Village Green Hog Farm, Inc. vs. CIR
"RRRRRRRRRRRRRRRR 2" 11/ 11/ 07 03077 NUTRITECH VENTURES INC. 67 625 .00
Total P8 083 97 1.8 1
10 of 10