Gov’t won’t appeal Tan case anymore

Not anymore.

The chances of appealing the P25.3-billion tax evasion case against tycoon Lucio Tan continue to dim as the Bureau of Internal Revenue (BIR) admitted it needs more time to evaluate the evidence.

In a letter to Justice Secretary Artemio Tuquero dated Sept. 22, BIR Commissioner Dakila Fonacier said the ad hoc committee, which he created, needs "at least four months to study Mr. Tan’s tax fraud suit."

Assuming that the request is granted, the petition for review can only be filed in January 2001, or three months beyond the Supreme Court-imposed deadline, which is already an extended time period.

"The ad hoc group believes it would need at least 120 days to be able to evaluate existing and possible new evidence," Fonacier said in his letter.

Last month, the Court of Appeals (CA) upheld the dismissal of the tax evasion suit against Tan’s flagship company, Fortune Tobacco Corp., because of a crucial procedural lapse. The case against the businessman was filed by the Office of the Solicitor General (OSG) 11 days late.

Fonacier said he formed a panel composed of BIR tax experts and DOJ prosecutors to make an inventory of available documents and records.

But the group, he pointed out, needs more time because of the "volume of documents to be reviewed and magnitude of work to be done."

Prior to the request for an extension, Tuqeuro had written Fonacier to inquire about his position on the Tan case.

He explained the Department of Justice (DOJ) cannot prosecute until the BIR reverses its own findings, which formed the basis for dismissal of the case by a lower court.

"Even if the OSG were to prevail in its appeal, the DOJ won’t be able to successfully prosecute unless the BIR takes back its position to withdraw from the case," he said.

Fortune was accused of failing to pay some P25.272 billion in ad valorem and value-added taxes from 1990 to 1992. The case was filed in December 1998 but was dismissed a year later by the Marikina Regional Trial Court after the BIR refused to prosecute the case.

A BIR re-investigation had concluded that no fraud was committed.