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    CIR Vs Benipayo G.R. L-13656

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    MAC
    The Collector of Internal Revenue assessed a deficiency amusement tax against Benipayo, the owner of a theater, based on findings from an investigation. During times when an internal revenue agent was present, sales of adult tickets increased significantly while children's ticket sales decreased compared to periods without supervision. However, the court ruled there were no substantial facts to support the assessment, as assessments must be based on actual facts, not mere presumptions. Fraud must also be proven by clear and convincing evidence, which was lacking in this case. The court reversed the Collector's decision.

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    CIR Vs Benipayo G.R. L-13656

    Uploaded by

    MAC
    285 views1 page
    The Collector of Internal Revenue assessed a deficiency amusement tax against Benipayo, the owner of a theater, based on findings from an investigation. During times when an internal revenue agent was present, sales of adult tickets increased significantly while children's ticket sales decreased compared to periods without supervision. However, the court ruled there were no substantial facts to support the assessment, as assessments must be based on actual facts, not mere presumptions. Fraud must also be proven by clear and convincing evidence, which was lacking in this case. The court reversed the Collector's decision.

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    CIR vs Benipayo G.R. L-13656

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    The Collector of Internal Revenue assessed a deficiency amusement tax against Benipayo, the owner of a theater, based on findings from an investigation. During times when an internal revenue agent was present, sales of adult tickets increased significantly while children's ticket sales decreased compared to periods without supervision. However, the court ruled there were no substantial facts to support the assessment, as assessments must be based on actual facts, not mere presumptions. Fraud must also be proven by clear and convincing evidence, which was lacking in this case. The court reversed the Collector's decision.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    285 views1 page

    CIR Vs Benipayo G.R. L-13656

    Uploaded by

    MAC
    The Collector of Internal Revenue assessed a deficiency amusement tax against Benipayo, the owner of a theater, based on findings from an investigation. During times when an internal revenue agent was present, sales of adult tickets increased significantly while children's ticket sales decreased compared to periods without supervision. However, the court ruled there were no substantial facts to support the assessment, as assessments must be based on actual facts, not mere presumptions. Fraud must also be proven by clear and convincing evidence, which was lacking in this case. The court reversed the Collector's decision.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Collector of Internal Revenue vs Alberto Benipayo

    G.R. No. L- 13656 (1962)


    Facts:
    Benipayo is the owner and operator of the Lucena Theater in Lucena, Quezon. He sells 40-
    centavo tickets for adults and 20-centavo (tax free) children’s tickets. In 1953, an internal revenue
    agent investigated his amusement tax liability in connection with the operation of the theater from
    August 1952 to September 1952. The following are his findings:
    • In the years 1949 to 1951, the average ratio of adults and children patronizing the theater
    was 75:25 (or 3:1)
    • In the returns filed for July 1-11 (where no internal revenue agent was supervising the
    sales), it showed that 31.43% are adults and 68.75% are children. For July 14-24 (where
    internal revenue agents were present), the sales for adults soared to 76% and 24% for the
    children.
    Based on such findings, the internal revenue officer recommended a deficiency amusement
    tax. The Court of Appeals reversed the decision of the Collector of Internal Revenue.

    Issue: Whether or not there is sufficient evidence in the record showing that Benipayo sold and
    issued to his adult customers tax-free children’s tickets to cheat and defraud the government

    Ruling: There are no substantial facts to support the assessment in question.

    An assessment fixes and determines the tax liability of a taxpayer. As soon as it is served,
    an obligation arises on the part of the taxpayer concerned to pay the amount assessed and
    demanded. Hence, assessments should not be based on mere presumptions no matter how
    reasonable or logical said presumptions may be. It must be based on actual facts. The fact that
    almost the same ratio existed during the month of July, 1955 does not provide a sufficient inference
    on the conditions in 1952 and 1953. The presumption of correctness of assessment being a mere
    presumption cannot be made to rest on another presumption. Moreover, fraud is a serious charge
    and, to be sustained, it must be supported by clear and convincing proof which, in the present case,
    is lacking.

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