Case Digest (G.R. No. 81446)
Facts:
Bonifacia Sy Po v. Honorable Court of Tax Appeals and Honorable Commissioner of Internal Revenue, G.R. No. 81446, August 18, 1988, Supreme Court Second Division, Sarmiento, J., writing for the Court.
Petitioner Bonifacia Sy Po is the widow of the late Po Bien Sing, who until his death was sole proprietor of Silver Cup Wine Factory in Talisay, Cebu. On a denunciation alleging massive tax evasion, the Secretary of Finance directed a Finance–BIR–NBI team (Finance Department Order No. 13‑70) to investigate Silver Cup in 1971; the team issued letters and a subpoena duces tecum in April–May 1971 requesting the factory’s accounting records but the books were not produced.
Because the books were not produced, the investigation team, assisted by the PC Company, entered Silver Cup’s bodega and seized alcohol products (inventory lists were compiled in five volumes). On the basis of the team’s investigation and employee sworn statements, the Commissioner of Internal Revenue assessed deficiency income taxes for 1966–1970 totaling P7,154,685.16 and deficiency specific taxes for January 2, 1964 to January 19, 1972 totaling P5,595,003.68 (assessment letters dated August 16 and September 26, 1972).
Petitioner protested the assessments by letters dated October 9 and 30, 1972; a reinvestigation produced a report dated August 13, 1981 recommending reiteration of the assessments because of continued failure to present books. Warrants of distraint and levy were issued September 10, 1981 and were received by petitioner on October 14, 1981, which she treated as a denial of her protest and appealed on October 29, 1981 to the Court of Tax Appeals. The Court of Tax Appeals, in a decision penned by Associate Judge Alex Z. Reyes (Presiding Judge ...(Pro-only)
Issues:
- Are the factual findings of the Court of Tax Appeals binding on this Court and reviewable only for lack of substantial evidence?
- Were the deficiency income and specific tax assessments against the taxpayer validly and lawfully made where the taxpayer failed to produce books and there was evidence of ...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)