This refers to the Preliminary Assessment Notice received

by this Corporation on __________________, informing hereof of

the deficiency Income tax, Value Added Tax, Expanded
Withholding Tax for the Taxable Year 2014.

apter, P. R., & Inaneditedvolume, J. C. (2001). Scientific

research papers provide evidence of frustration with giant style
manuals. In P. Z. Wildlifeconservation, R. Dawkins, & J. H.
Dennett (Eds.), Research papers are hard work but boy are they
good for you (pp. 123-256). New York, NY: Simon & Schuster.
Qosenberg, Morris. (1994, September 11). This is how you
cite an online news article that has an author. The Washington
Post. Retrieved from
http://www.washingtonpost.com/dir/subdir/2014/05/11/a-d9-
11e3_story.html
* On p. 189, the 6th ed. manual says “We recommend that
when DOIs are available, you include them”—so you can skip the
DOI if you can’t find it. Footnotes

determined that there exists sufficient basis to assess the

taxpayer for any deficiency tax or taxes, the said Office shall issue
to the taxpayer a Preliminary Assessment Notice (PAN) for the
proposed assessment. It shall show in detail the facts and the law,
rules and regulations, or jurisprudence on which the proposed
assessment is based
If the taxpayer fails to respond within fifteen (15) days
from date of receipt of the PAN, he shall be considered in default,
in which case, a Formal Letter of Demand and Final Assessment
Notice (FLD/FAN) shall be issued calling for payment of the
taxpayer's deficiency tax liability, inclusive of the applicable
penalties.”

by submitting its response and disagreement to the

aforementioned Preliminary Assessment Notice, as follows:

I. DEFICIENCY INCOME TAX

Disallowed Expenses due to non-withholding

Income Not Subjected to VAT”, with no explanation to fully

appraise the undersigned of the facts and circumstances regarding
the alleged deficiency.
“Sec. 2.58.5. Requirements for Deductibility. - An income
payment which is otherwise deductible under the Code shall be
allowed as a deduction from the payor's gross income only if it is
shown that the income tax required to be withheld has been paid to
the Bureau in accordance with Secs. 57 and 58 of the Code.

A deduction will also be allowed in the following

cases where no withholding of tax as made:

(B) The recipient/payee failed to report the income

on the due date thereof, but the withholding agent/taxpayer pays
the tax, including the interest incident to the failure to withhold the
tax and surcharges if applicable, at the time of audit/investigation
or reinvestigation/reconsideration.”

3.1 Mode of procedure in the issuance of a deficiency tax

assessment:
 3.1.1 Preliminary Assessment Notice (PAN). — If after
review and evaluation by the Commissioner or his duly authorized
VALUE ADDED TAX
2. Respondent, Victoria Secreto, of legal age, married and
a resident of Passi City, Iloilo, Philippines. Defendant may be
served with summons and other processes of the Honorable Court
at her stated addresses;Plaintiff,

-versus- Civil Case No. ___

For: SPECIFIC PERFORMANCE

FERNANDO MARTIN,
Defendant.

x---------------------------------------------------------x

. Sometime in February 2018, Mrs. Victoria Secreto (Respondent) met with was then couple

Sharmaine Mendoza and Val Ibulgar at a restaurant near University of San Agustin. The couple

agreed that they will get Mrs. Secreto as their wedding coordinator for they have known each

other since high school and the fact that Mrs. Secreto is best friends with Ms. Mendoza.

6. On April 8, 2018, the parties executed a contract (Service Agreement) containing the details of

the wedding and the obligations of the parties. The said contract specifically stated the requests

of the Plaintiff as to the materials and designs for the wedding venue, the number of expected

guests, and the venue for the reception and the menu for the catering

1.2 Defendant Fernando Martin,is of legal age, a Filipino, with address at 385

Corinthians Street, Quezon City, where he may be served with pleadings, motions, notices,

resolutions, orders and other processes of this Honorable Court.

I. ALLEGATIONS COMMON TO ALL CAUSES OF ACTION

2 service. In addition, the contract also provides the Plaintiff’s special request for the cake

design. Copy of the said contract is attached as Annex “A”;

7. The parties also stipulated in the said contract that the overall expenses mentioned should be

paid on or before the date of the wedding which is December 15, 2018.

8. On October 11, 2018, Plaintiff, by the request of Respondent, issued a check containing the

amount of Two Hundred Fifty Thousand Pesos (Php 250, 000) as a down-payment for the said

wedding expenses. Copy of said check is hereto attached as Annex “B”;

9. On November 17, 2018, an additional amount of Two Hundred Fifty Thousand Pesos (Php

250, 000) was paid in cash by the Plaintiff to the Respondent;

2.5 On 13 February 2009, plaintiff and defendant executed a memorandum of

agreement (MOA), where plaintiff would sell the clinic and its equipment to defendant for Php

15,000,000.00.

2.6 As per the Contract to Sell, payments would be made in four (4) installments, in

the following manner:

“FIVE HUNDRED THOUSAND PESOS (Php 500,000.00) to be paid on the date of

signing of the MOA; 
TWO MILLION FIVE HUNDRED THOUSAND PESOS (Php 2,500,000.00) to be paid
on 30 May 2009;
SIX MILLION PESOS (Php 6,000.000.00)to be paid on 30 August 2009;
SIX MILLION PESOS (Php 6,000,000.00) to be paid on 30 November 2009.

The transfer of ownership and the deed of absolute sale would be made upon the last
payment.”

2.7 Defendant paid Php 500,000.00 on 13 February 2009, date of signing of the

MOA, the receipt of which was acknowledged. The next day, 14 February 2009, defendant made

an additional payment, totaling the payments made to Php 3, 000,000.00.

2 However, on November 18, a day after the Respondent accepted the amount, the

Plaintiff received a message on her Facebook account through messenger saying that the

additional amount of money was stolen from her because her bag containing the money was rob

at Robinson’s Jaro. The Plaintiff, being considerate to her best friend, paid the remaining balance

of Two Hundred Fifty Thousand Pesos (Php 250, 000) and offered that the Respondent may
make adjustments as to the materials to be used in the venue. In exchange, the Respondent

promised that she will make her bestfriend’s wedding memorable as provided in the conversation

between Plaintiff and Respondent. Copy of the document of the said conversation is attached

hereto as Annex “C”.

11. On December 5, 2018, few days before the wedding, the Plaintiff had difficulty in

contacting her best friend as seen in the messages sent by her through text. Copy of the document

is attached hereto as Annex “D”.

ower to rescind obligations is implied in reciprocal ones, in case one of the

obligors should not comply with what is incumbent upon him.

The injured party may choose between the fulfillment and the rescission of
the obligation, with the payment of damages in either case. He may also seek
rescission, even after he has chosen fulfillment, if the latter should become
impossible. However, on December 15, 2018, when the Plaintiff arrived at Jaro
Cathedral, she was surprised that there were no flowers inside the church as if
there was no wedding on that day. The Plaintiff, walked down the aisle with tears
and disappointments. Despite the incident, the wedding ceremony continued.

15. However, when the newly-wed and the guests arrived at reception,
there were only five (5) lechon manok on the table and nothing else. Forcing the
bride and groom buy food for their guests at McDonald’s Atria. Copy of pictures
of lechon manok and the newly-wed buying at McDonald’s is attached as Annex
“F” and Annex “G”, respectively.

16. More disappointments followed when the cake arrived at the venue
and it was less and different than what was stipulated in the contract. The worst
was the first layer of the said cake is made from stryofoam covered by red
fondant. Copy of the picture of the said cake is attached hereto as Annex “I”.

The court shall decree the rescission claimed, unless there be just cause
authorizing the fixing of a period.
 This is understood to be without prejudice to the rights of third persons
who have acquired the thing, in accordance with Articles 1385 and 1388 and the
Mortgage Law. (1124)”

3.4 Section 3 of the Contract to Sell states:

“(3) FAILURE TO COMPLY WITH OBLIGATION.Should one of the

parties fail to comply with their respective obligations, the party who failed to

comply will be liable to pay thirty percent (30%) liquidated damages plus other

damages.”

3.5 Aisa Sarmiento, in exercise of its obligation under the Contract to Sell,

turned over the clinic to Fernando Martin after he paid the second installment, totaling his

payment to Php3,000,000.00.

3.6 On the other hand, Fernando Martin stopped payment after the second installment

and after turnover of the clinic.

3.7 Therefore, pursuant to Paragraph 1, Article 1169 of the Civil Code, the effects of

delay in the delivery of an obligation or morasolvendi is the breach or violation of the obligation.

There has been no breach on the agreement on the part of AisaSarmiento, the breach herein was

committed by Fernando Martin. Hence, the latter is the guilty party.

3.8 In connection with the foregoing, it is of no doubt that Aisa Sarmiento is the

injured party of the herein case who can apply the provisions of Article 1191 of the Civil Code

and Section 3 of the Contract to Sell, which was stated earlier. Aisa Sarmientois entitled to

demand specific performance against Fernando Martin to pay the remaining balance of the

purchase price plus damages for the latter’s failure to comply obligation.

IV. SECOND CAUSE OF ACTION

4.1 Aisa Sarmiento respectfully repleads the allegations of the foregoing paragraphs

by reference.

4.2 Article 1226 of the Civil Code provides:

 “Art. 1226. In obligations with a penal clause, the penalty shall substitute
the indemnity for damages and the payment of interests in case of non-
compliance, if there is no stipulation to the contrary. Nevertheless, damages shall
be paid if the obligor refuses to pay the penalty or is guilty of fraud in the
fulfillment of the obligation.

The penalty may be enforced only when it is demandable in accordance

with the provisions of this Code. (1152a)”

4.3 Thus, Aisa Sarmiento has the right to thirty percent (30%) liquidated damages,

pursuant to Section 3 of the Contract to Sell which was cited earlier, and to Article 1226 of the

Civil Code.

V. THIRD CAUSE OF ACTION

5.1 Aisa Sarmiento respectfully repleads the allegations of the foregoing paragraphs

by reference.

5.2 Section 13 of the Contract to Sell further provides:

“(13) ATTORNEY’S FEES, ETC: Should either party resort to judicial

proceedings to enforce any of its rights hereunder, the party at fault will pay the

other reasonable compensation for its expenses and charges, including attorney’s

fees in addition to all expenses of litigation and costs of suit.”

5.3 Fernando Martin is obligated to pay Aisa Sarmiento for any expenses, charges,

attorney’s fees, litigation expenses and costs of the suit, should Aisa Sarmiento resort to judicial

proceedings to enforce any of its rights under the Contract to Sell.

5.4 Based on the Contract to Sell, Fernando Martin should be made to pay Aisa

Sarmiento the amount of P200,000.00 by way of attorney’s fees, costs and litigation expenses.

PRAYER
 WHEREFORE, Aisa Sarmiento respectfully prays that this Honorable Court:

1. On the First Cause of Action, order Fernando Martin to pay the amount of Php

12,000,000.00 in performance of his obligation to the Contract to Sell.

2. On the Second Cause of Action, order Fernando Martin to pay the penalty cost of 30%

liquidated damages amounting to Php 3,600,000.00.

3. On the Third Cause of Action, order Fernando Martin to pay the sum of Php

200,000.00 as and for attorrney’s fees and expenses of litigation, plus costs.

Aisa Sarmiento further prays for such other reliefs as may be just and equitable in the

premises.

Makati City, 16February 2012

Counsel for Plaintiff Aisa Sarmiento

By:

Verification and Secretary’s Certificate Follows…