MANILA, Philippines - The Court of Tax Appeals (CTA) yesterday dismissed the P2.714-million tax evasion charges filed by the Bureau of Internal Revenue (BIR) against actress Judy Ann Santos.
“There was reasonable ground to dismiss the criminal charges filed against the actress,†said the decision penned by Associate Justice Lovell Bautista.
Associate Justice Amelia Cotangco-Manalastas concurred with the decision while Associate Justice Olga Palanca-Enriquez inhibited herself from the case.
The BIR filed tax evasion charges against the actress in 2005. In the complaint, the BIR said Santos “willfully, unlawfully, and feloniously filed a false and fraudulent income tax return for taxable year 2002.â€
The bureau claimed that Santos only indicated a gross income of P8.033 million when her correct income for the year was more than P16 million.
The BIR said the actress had an income tax deficiency of P1.395 million, excluding interest and penalties which, at the time of filing of the case, amount to more than P1.3 million.
Meanwhile, the BIR yesterday said it would file a petition questioning the CTA decision dismissing the tax evasion case against Santos.
“It has always been the BIR’s position that the tax code provides for a presumption of fraud in cases of underdeclaration of 30 percent. Ms. Santos’ underdeclaration exceeds 100 percent and the defense never submitted any evidence to disprove such presumption,†it said.
Under the tax code, an underdeclaration of more than 30 percent constitutes prima facie evidence of fraud tantamount to tax evasion. – With Zinnia dela Peña