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    Republic v. Iac

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    John Lorie Bacaling
    The Supreme Court ruled that the tax amnesty payments made by the private respondents on October 23, 1973 bar an action for recovery of deficiency income taxes under P.D.'s Nos. 23, 213 and 370. The Court held that the government is estopped from collecting the difference between the deficiency tax assessment and the amount already paid by the respondents as amnesty tax. A tax amnesty partakes of an absolute forgiveness or waiver by the Government of its right to collect what otherwise would be due, and the respondents' payment under P.D. 213 was accepted by the government.

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    Republic v. Iac

    Uploaded by

    John Lorie Bacaling
    12 views1 page
    The Supreme Court ruled that the tax amnesty payments made by the private respondents on October 23, 1973 bar an action for recovery of deficiency income taxes under P.D.'s Nos. 23, 213 and 370. The Court held that the government is estopped from collecting the difference between the deficiency tax assessment and the amount already paid by the respondents as amnesty tax. A tax amnesty partakes of an absolute forgiveness or waiver by the Government of its right to collect what otherwise would be due, and the respondents' payment under P.D. 213 was accepted by the government.

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    The Supreme Court ruled that the tax amnesty payments made by the private respondents on October 23, 1973 bar an action for recovery of deficiency income taxes under P.D.'s Nos. 23, 213 and 370. The Court held that the government is estopped from collecting the difference between the deficiency tax assessment and the amount already paid by the respondents as amnesty tax. A tax amnesty partakes of an absolute forgiveness or waiver by the Government of its right to collect what otherwise would be due, and the respondents' payment under P.D. 213 was accepted by the government.

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

    Republic v. Iac

    Uploaded by

    John Lorie Bacaling
    The Supreme Court ruled that the tax amnesty payments made by the private respondents on October 23, 1973 bar an action for recovery of deficiency income taxes under P.D.'s Nos. 23, 213 and 370. The Court held that the government is estopped from collecting the difference between the deficiency tax assessment and the amount already paid by the respondents as amnesty tax. A tax amnesty partakes of an absolute forgiveness or waiver by the Government of its right to collect what otherwise would be due, and the respondents' payment under P.D. 213 was accepted by the government.

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    REPUBLIC v.

    IAC
    G.R. No. 69344
    26 April 1991

    FACTS:
    - Republic of the Philippines, through the Bureau of Internal Revenue, commenced an action
    in the Court of First Instance (now Regional Trial Court), to collect from the spouses Antonio
    Pastor and Clara Reyes-Pastor de ciency income taxes for the years 1955 to 1959 with
    surcharge and monthly interest, and costs.
    - The Pastors led a motion to dismiss the complaint, but the motion was denied. They led
    an answer admitting there was an assessment against them for income tax de ciency but
    denying liability therefor.
    - They contended that they had availed of the tax amnesty under P.D.’s Nos. 23, 213 and 370
    and had paid the corresponding amnesty taxes amounting of their reported untaxed income
    under P.D. 23, and a nal payment on October 26, 1973 under P.D. 370 evidenced by the
    Government’s O cial Receipt.
    - The trial court held that the respondents had settled their income tax de ciency for the years
    1955 to 1959, not under P.D. 23 or P.D. 370, but under P.D. 213.
    - The Government appealed to the Intermediate Appellant Court, alleging that the private
    respondents were not quali ed to avail of the tax amnesty under P.D. 213 for the bene ts of
    that decree are available only to persons who had no pending assessment for unpaid taxes,
    as provided in Revenue Regulations Nos. 8-72 and 7-73.
    - Since the Pastors did in fact have a pending assessment against them, they were precluded
    from availing of the amnesty granted in P.D.’s Nos. 23 and 213. The Government further
    argued that “tax exemptions should be interpreted strictissimi juris against the taxpayer.
    - The Intermediate Appellate Court (now Court of Appeals) rendered a decision dismissing the
    Government’s appeal and holding that the payment of de ciency income taxes by the
    Pastors under PD. No. 213, and the acceptance thereof by the Government, operated to
    divest the latter of its right to further recover de ciency income taxes from the private
    respondents pursuant to the existing de ciency tax assessment against them.

    ISSUE:
    - WON the tax amnesty payments made by the private respondents on October 23, 1973 bar
    an action for recovery of de ciency income taxes under P.D.'s Nos. 23, 213 and 370.

    RULING:
    - YES
    - The Government is estopped from collecting the di erence between the de ciency tax
    assessment and the amount already paid by them as amnesty tax.
    - A tax amnesty, being a general pardon or intentional overlooking by the State of its authority
    to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax
    law, partakes of an absolute forgiveness or waiver by the Government of its right to collect
    what otherwise would be due it, and in this sense, prejudicial thereto, particularly to give tax
    evaders, who wish to relent and are willing to reform a chance to do so and thereby become
    a part of the new society with a clean slate
    - The nding of the appellate court that the de ciency income taxes were paid by the Pastors,
    and accepted by the Government, under P.D. 213, granting amnesty to persons who are
    required by law to le income tax returns but who failed to do so, is entitled to the highest
    respect and may not be disturbed except under exceptional circumstances
    - The rule is that in case of doubt, tax statutes are to be construed strictly against the
    Government and liberally in favor of the taxpayer strictisimi juris for taxes, being burdens, are
    not to be presumed beyond what the applicable statute (in this case P.D. 213) expressly and
    clearly declaresJOYA v. PCGG.
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