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    CIR Vs Ariete - Taxation

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    Carl Montemayor
    - The respondent filed income tax returns under the Voluntary Assessment Program (VAP) after being accused of not filing taxes for 1994-1996 by an affidavit. However, the investigation into the respondent was not recorded in the Official Registry Book of the BIR until after the respondent had filed under the VAP. - The Court of Tax Appeals cancelled the deficiency assessments, finding that all requirements must be met before excluding someone from the VAP, including the investigation being recorded in the Official Registry Book prior to filing under VAP. - The issue is whether recording in the Official Registry Book is mandatory. The Supreme Court held that recording is a mandatory requirement based on the Revenue Memorandum Orders about the VAP.

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    CIR Vs Ariete - Taxation

    Uploaded by

    Carl Montemayor
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    - The respondent filed income tax returns under the Voluntary Assessment Program (VAP) after being accused of not filing taxes for 1994-1996 by an affidavit. However, the investigation into the respondent was not recorded in the Official Registry Book of the BIR until after the respondent had filed under the VAP. - The Court of Tax Appeals cancelled the deficiency assessments, finding that all requirements must be met before excluding someone from the VAP, including the investigation being recorded in the Official Registry Book prior to filing under VAP. - The issue is whether recording in the Official Registry Book is mandatory. The Supreme Court held that recording is a mandatory requirement based on the Revenue Memorandum Orders about the VAP.

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    cir vs ariete

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    CIR vs Ariete- Taxation

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    - The respondent filed income tax returns under the Voluntary Assessment Program (VAP) after being accused of not filing taxes for 1994-1996 by an affidavit. However, the investigation into the respondent was not recorded in the Official Registry Book of the BIR until after the respondent had filed under the VAP. - The Court of Tax Appeals cancelled the deficiency assessments, finding that all requirements must be met before excluding someone from the VAP, including the investigation being recorded in the Official Registry Book prior to filing under VAP. - The issue is whether recording in the Official Registry Book is mandatory. The Supreme Court held that recording is a mandatory requirement based on the Revenue Memorandum Orders about the VAP.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    185 views2 pages

    CIR Vs Ariete - Taxation

    Uploaded by

    Carl Montemayor
    - The respondent filed income tax returns under the Voluntary Assessment Program (VAP) after being accused of not filing taxes for 1994-1996 by an affidavit. However, the investigation into the respondent was not recorded in the Official Registry Book of the BIR until after the respondent had filed under the VAP. - The Court of Tax Appeals cancelled the deficiency assessments, finding that all requirements must be met before excluding someone from the VAP, including the investigation being recorded in the Official Registry Book prior to filing under VAP. - The issue is whether recording in the Official Registry Book is mandatory. The Supreme Court held that recording is a mandatory requirement based on the Revenue Memorandum Orders about the VAP.

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    of 2

    G.R. No.

    164152

    January 21, 2010

    COMMISSIONER OF INTERNAL REVENUE, Petitioner, vs. JULIETA ARIETE, Respondent. Facts: Mercado filed an affidavit attesting that respondent earned substantial income in 1994, 1995, and 1996 without paying income tax. The SID then issued an order to investigate the denunciation made and submit a progress repot. Thereafter, the revenue officer submitted a report stating that respondent admitted her non-filing of income tax returns. The respondent then filed her income tax returns under the Voluntary Assessment Program (VAP). A notice of assessment was then issued against respondent finding a tax deficiency amounting to P191,463.04. Upon assessment, respondent filed for assessment protest and offered a compromise settlement but the same was denied. Consequently, respondent filed a petition for review and the CTA granted such and rendered a decision cancelling the deficiency assessments. The CTA stated that when respondent filed her income tax returns on 2 December 1997, she was not yet under investigation by the Special Investigation Division. The Letter of Authority to investigate respondent for tax purposes was issued only on 28 July 1998. Further, respondents case was not duly recorded in the Official Registry Book of the BIR before she availed of the VAP. The CTA, quoting RMO Nos. 59-97, 60-97, and 63-97, ruled that the requirements before a person may be excluded from the coverage of the VAP are: a. The person(s) must be under investigation by the Tax Fraud Division and/or the regional Special Investigation Division; b. The investigation must be as a result of a verified information filed by an informer under Section 281 of the NIRC, as amended; and c. The investigation must be duly registered in the Official Registry Book of the Bureau before the 12 date of availment under the VAP. The CTA ruled that the conjunctive word "and" is used; therefore, all of the above requisites must be present before a person may be excluded from the coverage of the VAP. The CTA explained that the word "and" is a conjunction connecting words or phrases expressing the idea that the latter is to be added or taken along with the first. Issue: WON the CA erred in holding that the recording in the Official Registry Book of the BIR of the information filed by the informer under Section 28 of the Tax Code is a mandatory requirement before a taxpayer-applicant may be excluded from the coverage of the VAP. Held: Petitioner contends that the VAP, being in the nature of a tax amnesty, must be strictly construed against the taxpayer-applicant such that petitioners failure to record the information in the Official Registry Book of the BIR does not affect respondents disqualification from availment of the benefits under the VAP. Petitioner argues that taxpayers who are under investigation for non-filing of income tax returns before their availment of the VAP are not covered by the program and are not entitiled to its benefits. Petitioner alleges that the underlying reason for the disqualification is that availment of the VAP by such taxpayer is no longer voluntary. Petitioner asserts that voluntariness is the very essence of the Voluntary Assessment Program. It is well-settled that where the language of the law is clear and unequivocal, it must be given its literal application and applied without interpretation. The general rule of requiring adherence to

    the letter in construing statutes applies with particular strictness to tax laws and provisions of a taxing act are not to be extended by implication. A careful reading of the RMOs pertaining to the VAP shows that the recording of the information in the Official Registry Book of the BIR is a mandatory requirement before a taxpayer may be excluded from the coverage of the VAP.

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