By Atty. Josephrally L. Chavez, Jr.
In the Bible it is written – “For unto whosoever much is given, of him shall be much required, and to whom men have committed much, of him they will ask more.” [Luke 12:48] Hesiod said: “Do not seek evil gains, evil gains are the equivalent of disaster”. Euripides articulated: “There is no benefit in the gifts of a bad man.” Aristotle voiced that: “Liars when they speak the truth are not believed.” Publilius Syrus expressed that: “Pardon one offense, and you encourage the commission of so many”. Quintilian stated that” “Those who wish to appear wise among fools, among the wise seem foolish.” Marcus Valerius Martialis stated that: “Conceal a flaw, and the world will imagine the worst.” And my idol, the Beatles intoned that: “Get back, get back to where you once belonged.”
Under the Tax Code, the failure to file a return, supply correct and accurate information is punishable by a fine of not less than P10,000.00 and must suffer imprisonment of not less than 1 year but not more than 10 years. In addition, there shall be imposed in addition to the tax required to be paid a 25% surcharge penalty, the interest of 12% which is computed or imposed per day and in applicable cases, the compromise penalty. However, if there is an element of fraud such as but not limited to willful neglect to file the return within the period prescribed by the Tax Code, false or fraudulent return, or there is a substantial under declaration of taxable sales, receipts or income or substantial over declaration of deductions, then the surcharge penalty is automatically imposed at 50%.
Noteworthy, any person convicted of a crime penalized under the Tax Code, in addition to being liable for the payment of the tax, be subject to the penalties imposed therein. Payment of the tax due after apprehension shall not constitute a valid defense in any prosecution for violation of any provision of the Tax Code or in any action for the forfeiture of untaxed articles. Also, any person who willfully aids or abets in the commission of a crime penalized herein or who causes the commission of any such offense by another shall be liable in the same manner as the principal.
If the offender is not a citizen of the Philippines, he shall be deported immediately after serving the sentence without further proceedings for deportation. If he is a public officer or employee, the maximum penalty prescribed for the offense shall be imposed and, in addition, he shall be dismissed from the public service and perpetually disqualified from holding any public office, to vote and to participate in any election. If the offender is a Certified Public Accountant, his certificate as a Certified Public Accountant shall, upon conviction, be automatically revoked or cancelled. In the case of associations, partnerships or corporations, the penalty shall be imposed on the partner, president, general manager, branch manager, treasurer, officer-in-charge, and employees responsible for the violation.
The fines to be imposed for any violation of the provisions of the Tax Code shall not be lower than the fines imposed therein or twice the amount of taxes, interests, and surcharges due from the taxpayer, whichever is higher.
In the case of People v. PCLC, CTA Crim. Case No. 172-178, it is said that “knowledge of a taxpayer’s obligation” to file the required return and voluntary failure to comply therewith in a manner required by law will suffice in proving willfulness. In attempting to cover up the failure to comply with its tax obligations, the mindset of willfulness, as opposed to mere inadvertence, is established. As settled by the Supreme Court, the under declaration or failure to declare true and actual income for several consecutive years is an indication to cheat the Government of its taxes. What more if there has been no declaration at all? This will therefore lead to the conclusion that the taxpayer willfully failed to make and filed the required returns and pay taxes thereon with the intent to deprive the Government of taxes it is due
[This Article is whole heartedly dedicated to my best friend and my little brother, Atty. Farley, who will finally submit to the sacrament of matrimony, as he is destined to walk down the aisle with the love of his life. May your being ONE with her be pleasant, enjoyable and fruitful. Also, I am happy and honored to be your best man! As the old adage tells us: A real man chooses to honor, love, respect, adore and be faithful to one woman and remember: happy is the man who finds a true friend, and far happier is he who finds that true friend in his wife. In deed, you are a real man my little brother! Congratulations, best wishes and God bless!!!]
