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    Cir vs. Pascor Realty and Development Corporation

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    maki Amancio
    This case discusses whether a criminal complaint for tax evasion can be considered an assessment under Philippine law. The Supreme Court ruled that (1) a criminal complaint and attached affidavits detailing tax liability do not qualify as a formal tax assessment, as an assessment must be a notice sent directly to the taxpayer, (2) an assessment is not necessary to file criminal charges for tax evasion, as Philippine law allows criminal proceedings without an assessment in cases involving false tax returns or failure to file. The Court dismissed the petition challenging the jurisdiction of lower courts.

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    Cir vs. Pascor Realty and Development Corporation

    Uploaded by

    maki Amancio
    840 views2 pages
    This case discusses whether a criminal complaint for tax evasion can be considered an assessment under Philippine law. The Supreme Court ruled that (1) a criminal complaint and attached affidavits detailing tax liability do not qualify as a formal tax assessment, as an assessment must be a notice sent directly to the taxpayer, (2) an assessment is not necessary to file criminal charges for tax evasion, as Philippine law allows criminal proceedings without an assessment in cases involving false tax returns or failure to file. The Court dismissed the petition challenging the jurisdiction of lower courts.

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    Cir vs. Pascor Realty and Development Corporation

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    This case discusses whether a criminal complaint for tax evasion can be considered an assessment under Philippine law. The Supreme Court ruled that (1) a criminal complaint and attached affidavits detailing tax liability do not qualify as a formal tax assessment, as an assessment must be a notice sent directly to the taxpayer, (2) an assessment is not necessary to file criminal charges for tax evasion, as Philippine law allows criminal proceedings without an assessment in cases involving false tax returns or failure to file. The Court dismissed the petition challenging the jurisdiction of lower courts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    840 views2 pages

    Cir vs. Pascor Realty and Development Corporation

    Uploaded by

    maki Amancio
    This case discusses whether a criminal complaint for tax evasion can be considered an assessment under Philippine law. The Supreme Court ruled that (1) a criminal complaint and attached affidavits detailing tax liability do not qualify as a formal tax assessment, as an assessment must be a notice sent directly to the taxpayer, (2) an assessment is not necessary to file criminal charges for tax evasion, as Philippine law allows criminal proceedings without an assessment in cases involving false tax returns or failure to file. The Court dismissed the petition challenging the jurisdiction of lower courts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Amancio, Mark Joshua C.

    2013-057870
    3C

    CIR vs. PASCOR REALTY AND DEVELOPMENT CORPORATION


    G.R. no. 128315
    Panganiban, J;

    Facts:
    By virtue of Letter of Authority, BIR Commissioner Jose Ong authorized Revenue Officers
    Thomas Que, Sonia Estorco and Emmanuel Savellano to examine the books of accounts and other
    accounting records of Pascor Realty and Development Corporation (PRDC) for the years 1986-
    88. The examination resulted to a recommendation ofr issuance of assessment for years ’86 and
    ’87.
    CIR filed a criminal complaint before the Department of Justice against PRDC, its
    president and its treasurer alleging evasion of taxes. PRDC filed Urgent Request for
    reconsideration/reinvestigation disputing the tax assessment and tax liability. CIR denied the
    request.
    The Respondent elevated the devision of the CIR to the CTA on a petition for review. CIR
    filed a motion to dismiss the tpetiont on the ground that CTA has no jurisdiction over the subject
    matter, as there was no formal assessment issued against the PRDC. The CTA denied the motion
    to dismiss on the ground that the criminal case for tax evasion is an assessment particularly, the
    Joint affidavit of Revenue Examiners Lagmay, and Savellano which contains the details of the
    assessment like the amount and kind of tax due, and the period covered.
    CIR then petitioned to Court of Appeals but CA sustained the CTA and dismissed the
    petition. Hence, this case
    CIR argues that the filing of the criminal complaint with the DOJ cannot in any way be
    construed as formal assessment of the PRDC’s tax liabilities.
    PRDC maintain that an assessment is not an action or proceeding for collection of taxes, but
    merely a notice that the amount stated therein is due as tax and that the taxpayer is required to pay
    the same. Thus, qualifying as an assessment the BIR examiners’ joint affidavit.

    Issue:
    1. WON a complaint for a tax evasion can be construed as an assessment.
    2. WON an assessment is necessary before criminal charges for tax evasion may be
    constituted.
    Amancio, Mark Joshua C. 2013-057870
    3C

    Ruling:
    1. NO.
    True, as pointed by PRDC, an assessment informs the taxpayer that he or she has tax
    liabilities. But not all documents coming from the BIR containing a computation of the tax
    liability can be deemed assessments.
    To start with, an assessment must be sent to and received by a taxpayer and must demand
    payment of the taxes described therein within a specific period. It should be stressed that the
    said document is a notice duly sent to the taxpayer. Indeed, an assessment is deemed made
    only when the collector of internal revenue releases, mails or sends such notice to the taxpayer.
    In this case, the BIR examiners’ affidavits merely contained a computation of PRDC’s tax
    liability. It did not state a demand or a period for payment. Worse, it was addressed to the
    Justice Secretary and not to the taxpayers.
    The BIR examiners’ Joint Affidavit attached to the Criminal complaint contained some
    details of the tax liabilities of PRDC does not ipso facto make it an assessment. The purpose
    of the Joint Affidavit was merely to support and substantiate the criminal complaint for tax
    evasion. Clearly it was not meant to be a notice of the tax due and a demand to the private
    respondents for payment thereof.
    2. NO.
    Section 222 of the NIRC specifically states that in cases where a false or fraudulent return
    is submitted or in cases of failure to file a return, proceedings in court may be commenced
    without an assessment. This is because the commissioner of internal revenue had, in such tax
    evasion cases, discretion on whether to issue an assessment or to file a criminal case against
    the taxpayer or to do both.

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