Court affirms ruling junking P2.9B tax case vs Estrada

THE Court of Tax Appeals (CTA) has denied for lack of merit the Bureau of Internal Revenue’s (BIR) appeal to review the reversal of the BIR’s order to former president now Manila Mayor Joseph Ejercito Estrada and his wife, former Sen. Luisa “Loi” Ejercito Estrada to pay their alleged income deficiency amounting to P2.9 billion.

- view on April 13, 2016, after the CTA’s Second Division upheld its reversal of the BIR ruling that required the spouses Estrada to pay the said amount.

“Despite much reliance and faith on the Sandiganbayan decision, petitioner failed to present, much more offer it in evidence to substantiate its case. Apparently, petitioner lost sight of the rule that judgments must be based on the evidence presented before the court,” the CTA en banc said in a 21-page decision promulgated on October 19.

“Thus, we concur with the Court in Division that ‘ the absence of vital documents from which the Court can verify the correctness of the subject same should be cancelled,” it added.

The tax court was referring to the Sandiganbayan ruling that convicted estrada of plunder in 2007.

He was later pardoned by his successor, Gloria Macapagal-Arroyo.

On November 23, 2015, the CTA’s Second Division reversed and set aside a ruling by the BIR that required the spouses Estrada to pay P2.9 billion representing allegedly

The BIR — which adopted as ba the Sandiganbayan decision — had alleged that there was a violation of the Tax Code when the couple failed to declare the supposed taxable income computed using the credits of a Jose Velarde account alleged to have been owned by Estrada totaling P2.22 billion.

“Due process demands that petitioners are afforded ample opportunity to be heard before any judgment may be rendered against them. Part of this due process requirement is the reasonable opportunity to confront or rebut any evidence that may be presented against them. Thus, this Court cannot sustain the tax assessment against petitioners solely based on the Sandiganbayan decision.”

“Due to the absence of vital documents from which the Court can verify the correctness of as income tax assessment should be cancelled,” the tax court said.