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    Mendez Case

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    MariaHannahKristenRamirez
    The document summarizes a case where a doctor was charged with tax evasion for failing to file income tax returns for two years and failing to supply accurate information in one return. The court affirmed the doctor's conviction and ruled that estimates can be used in criminal cases, assessments are not required before collecting unpaid taxes, and the tax agency can use third party information in investigations.

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    Mendez Case

    Uploaded by

    MariaHannahKristenRamirez
    17 views2 pages
    The document summarizes a case where a doctor was charged with tax evasion for failing to file income tax returns for two years and failing to supply accurate information in one return. The court affirmed the doctor's conviction and ruled that estimates can be used in criminal cases, assessments are not required before collecting unpaid taxes, and the tax agency can use third party information in investigations.

    Original Description:

    TAXATION LAW

    Original Title

    MENDEZ CASE

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    The document summarizes a case where a doctor was charged with tax evasion for failing to file income tax returns for two years and failing to supply accurate information in one return. The court affirmed the doctor's conviction and ruled that estimates can be used in criminal cases, assessments are not required before collecting unpaid taxes, and the tax agency can use third party information in investigations.

    Copyright:

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

    Mendez Case

    Uploaded by

    MariaHannahKristenRamirez
    The document summarizes a case where a doctor was charged with tax evasion for failing to file income tax returns for two years and failing to supply accurate information in one return. The court affirmed the doctor's conviction and ruled that estimates can be used in criminal cases, assessments are not required before collecting unpaid taxes, and the tax agency can use third party information in investigations.

    Copyright:

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

    Case Digest (G.R. No.

    208310-11 & 208662)

    Facts:
     Joel C. Mendez, a medical doctor and businessman, was charged with violation of
    Section 255 of the National Internal Revenue Code (NIRC) for failure to file
    income tax returns for the taxable years 2002 and 2003, as well as failure to
    supply correct and accurate information in the ITR for the taxable year 2003.
     The Bureau of Internal Revenue (BIR) conducted an investigation and found that
    Mendez had unreported income for the said years.
     The Court of Tax Appeals (CTA) Division found Mendez guilty of the charges, and
    this decision was affirmed by the CTA En Banc.

    Issue:
     Whether an assessment for deficiency taxes is a prerequisite for the collection of
    the taxpayer's civil liability for unpaid taxes in a criminal prosecution for tax law
    violations.

    Ruling:
     The court affirmed Mendez's conviction for tax evasion and held that the CTA
    had jurisdiction over the criminal cases.
     The court also ruled that the use of estimates in the Amended Informations was
    valid and that a final assessment is not necessary for the imposition of civil
    liability for unpaid taxes in a criminal action.

    Ratio:
     The CTA Division held that the notices sent to Mendez were deemed received by
    him since he authorized his accountant to receive documents on his behalf.
     The BIR conducted an investigation and used the net worth and expenditures
    method to determine Mendez's unreported income.
     The CTA Division found Mendez guilty of willful failure to file ITR for the taxable
    year 2002 and willful failure to supply correct and accurate information in the
    ITR for the taxable year 2003.
     Mendez argued that the CTA did not have jurisdiction over the criminal cases
    because the amounts of taxes alleged in the Amended Informations were mere
    estimates.
     However, the court held that the CTA had jurisdiction over the cases since the
    amounts claimed in the Amended Informations exceeded P1,000,000.
     The court also ruled that the use of estimates in the Amended Informations did
    not divest the CTA of jurisdiction.
     The court further held that the issuance of subpoena duces tecum is not
    mandatory before the BIR can resort to third-party information and best
    obtainable evidence.
     The court found that Mendez was aware of his duty to file ITR and willfully failed
    to do so.
     The court also ruled that a final assessment issued by the Commissioner of
    Internal Revenue is not a condition precedent to the imposition of civil liability
    for taxes in a criminal action for violation of the tax laws.

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