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ENBANC
SPS. HORDON H.
MARIBEL C. EVONO,
EVONO
and
Petitioners,
Present:
ACOSTA, Presiding Justice,
CASTANEDA, JR.,
BAUTISTA,
UY,
CASANOVA,
PALANCA-ENRIQUEZ,
F ABON-VICTORINO,
MINDARO-GRULLA, and
COTANGCO-MANALASTAS, JJ.
-versus-
DEPARTMENT
OF
FINANCE,
COMMISSIONER
OF
INTERNAL
REVENUE and THE REPUBLIC OF
THE PHILIPPINES, ET AL.,
R espondents.
X ------------------------------------------------------------------------------------ X
DECISION
PALANCA-ENRI QUEZ, J.:
THE CASE
This is a Petition for Review filed by sps. Hordon H. Evono and
Maribel C. Evono (hereafter "petitioners") under Section 11 of RA 9282
amended, which seeks to set aside the Decision dated June 3, 2010 and
Q}fJ
C.T.A. EB NO . 705
(C.T.A. CASE NO. 7573)
DECISION
Kind
Land
Land
Area (sq.m.)
Location
350
Gun-ob, Lapu-lapu City
328
Gun-ob, Lapu-lapu City
OCT/TCT
3085
18185
MarketValue
280,000.00
262,400.00
Selling Price
P542,400.00
P1 ,356,000.00
P1 ,017,000.00
Value of Donation/spouse
Husband
P508,500.00
Wife
P508,500.00
Donor's Tax
14,510.00
14,510.00
Add :
3,627.50
6,529.50
3,627.50
6,529.50
3,000.00
3,000.00
13,157.00
13,157.00
27,667.00
27,667.00
P55,334.00
Market Value
4,533,875.00
59,225.00
Selling Price
P4,593,100.00
P4,117,500.00
II.
Kind
Land
Land
Area (sq.m.)
Location
7,885
Gun-ob, Lapu-lapu City
103
Gun-ob, Lapu-lapu City
OCT/TCT
3085
18185
Value of Donation/spouse
Donor's Tax
1,017,000.00
P3,088,125.00
Husband
1,544,062.50
87,525.00
Wife
1,544,062.50
87,525.00
3,088,125.00
0~
Add:
21 ,881 .25
18,963.75
21 ,881.25
18,963.75
12,000.00
12,000.00
52,845.00
52,845.00
140,370.00
140,370.00
280,740.00
GRAND TOTAL (Three Hundred Thirty Six Thousand Seventy Four Pesos)
P336,074.00
&fJJ
C.T.A. EB NO . 705
(C.T.A. CASE NO. 7573)
DECISION
children in the CAR is subject to donor's tax; and claims for refund are
construed strictly against the claimant.
After trial on the merits, on June 3, 2010, the Special First Division
rendered a Decision denying petitioners' claim on the ground of
prescription.
On July 27, 2010, petitioners filed a "Motion for Reconsideration"
to
which
respondent
filed
her
"Opposition
(Re:
Motion
for
II
v
WAS THIS PETITION TO THE COURT OF TAX APPEALS
FILED ON TIME (SIC).
VI
WAS THERE JURISDICTION OF THE COURT OF TAX
APPEALS AT THE TIME OF FILING (SIC).
Principal Issues
The foregoing issues boil down to two (2) principal issues, to wit:
1) whether or not the Petition for Review in C.T.A. Case No.
7573 was timely filed; and
2) whether the inclusion of petitioners' children in the CAR
and transfer certificate of titles maybe deemed a donation
from their parents, and maybe subject to donor's tax under
10
11
228 of the NIRC of 1997, as amended, is distinct from the period to file a
claim for refund under Section 229 of the same Code.
In this case, a careful perusal of the records shows that petitioners
first disputed the assessment on January 11, 2005 prior to their payment
under protest on June 20, 2005. Thus, the present petition involves a
!LI
12
regardless of whether it has been paid under protest, since the resolution
of the claim for refund is dependent on the outcome of the resolution of
petitioners' protest. Therefore, we agree with the Special First Division
that Section 228 of the NIRC of 1997, as amended, is the applicable law
to petitioners' present action.
Section 229 of the same Code considering that they are still questioning
13
14
IL/
15
the matter under protest and/or decision shall become final, executory and
demandable.
In this case, records show that petitioners filed their administrative
protest with the CIR on August 9, 2005. Counting 180-days from August
9, 2005, the Commissioner had until February 6, 2006 within which to
act on petitioners' protest. Within thirty (30) days from the lapse of the
180-day period, or until March 8, 2006, petitioners should have appealed
their claim for refund to this Court.
Special First Division, petitioners filed their appeal only on February 12,
2007, or more than one year way beyond the 30-day prescribed period.
As to petitioners' contention that the CIR failed to render a
decision until March 1, 2010, it must be emphasized that in both Section
228 and RA 9282 (An Act Expanding the Jurisdiction of the CTA), the
jurisdiction of the CTA has been expanded to include not only decisions
or rulings, but inaction as well of the Commissioner of Internal Revenue.
In fact, Section 228 specifically provides a period where "inaction" will
arise, which may be subject to appeal and the corresponding consequence
of failure to elevate the matter to the CTA.
Thus, in the case of RCBC vs. CIR (491 SCRA 221), the Supreme
Court ruled:
C.T.A. EB NO . 705
(C.T.A. CASE NO. 7573)
DECISION
16
17
review with the Court of Tax Appeals within 30 days after the
expiration of the 180-day period; or 2) await the final decision
of the Commissioner on the disputed assessments and appeal
such final decision to the Court of Tax Appeals within 30 days
after receipt of a copy of such decision. However, these
options are mutually exclusive, and resort to one bars the
application of the other.
In the instant case, the Commissioner failed to act on the
disputed assessment within 180 days from date of submission
of documents. Thus, petitioner opted to file a petition for
review before the Court of Tax Appeals. Unfortunately, the
petition for review was filed out of time, i.e., it was filed more
than 30 days after the lapse of the 180-day period.
Consequently, it was dismissed by the Court of Tax Appeals for
late filing. Petitioner did not file a motion for reconsideration or
make an appeal; hence, the disputed assessment became final,
demandable and executory.
Based on the foregoing, petitioner cannot now claim that
the disputed assessment is not yet final as it remained unacted
upon by the Commissioner; that it can still await the final
decision of the Commissioner and thereafter appeal the same to
the Court of Tax Appeals. This legal maneuver cannot be
countenanced. After availing the first option, i.e., filing a
petition for review which was however filed out of time,
petitioner can not successfully resort to the second option, i.e.,
awaiting the final decision of the Commissioner and appealing
the same to the Court of Tax Appeals, on the pretext that there
is yet no final decision on the disputed assessment because of
the Commissioner's inaction." (Emphasis Ours)
Clearly, the present petition was filed more than one (1) year way
beyond the prescribed 30-day period.
ur
Hence, we hold that the Special First Division correctly dismissed the
18
Petition for Review for having been filed way beyond the prescribed 30day period.
Validity o(Donor's
Tax Assessment
19
(JY
20
children would not be able to save such substantial amount, even if they
were receiving enormous allowances from their parents.
As a
21
22
SO ORDERED.
~ ~~.~
OLGi PALANCA-ENRIQUEZ
Associate Justice
WE CONCUR:
\_._....-- l.P.
0. ,__-
ERNESTO D. ACOSTA
Presiding Justice
s:L_~~ c.~ Sl. .
JtfANITO c. CASTANEDk,JR.
Associate Justice
'\
ER~.UY
Associate Justice
CAESAR A. CASANOVA
Associate Justice
N. M~- C~
iate Justice
CIELITO N. MINDARO-GRULLA
Associate Justice
~~~~/?AMELIA R. COTANGCO-MANALASTAS
Associate Justice
23
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, it is hereby
certified that the above Decision has been reached in consultation with
the members of the Court En Bane before the case was assigned to the
writer of the opinion of the Court.
~ ..
1----\f'r
ERNESTO D. ACOSTA
Presiding Justice