Tax Evasion

“Do your duty, and history will do you justice.” - Truman. Every person has his

own rights, and with it, has his own duties. A person must have the initiative to fulfill his

duties and responsibilities especially those which are for his state. That is why laws

were made – to ensure that those responsibilities will be accomplished. The law may be

harsh but surely it can bring order and justice for the greater good.

The Tax Code imposes penalties, including imprisonment in addition to payment

of taxes and civil penalties to crimes defined under Chapter II. As of August 2009, in the

consolidated cases of the People of the Philippines vs Gloria Kintanar, the Second

Division of the Court of Tax Appeals convicted a taxpayer for the violation of Section

255 of the Tax Code. Section 255 covers four different situations, an obligation imposed

under the Tax Code which are: (1) to pay an estimated tax; (2) to make a return; (3) to

keep records, and (4) to supply correct and accurate information. The accused in the

Kintanar Cases had failed to make or file a return for two consecutive taxable years

violating the Tax Code.

In order to convict an accused for failure to file a tax return, it must be shown that

he/she is aware of his obligations to file the tax return and that the failure was done

knowingly, intentionally, and with the specific intent not to file the said return. The

accused, Gloria Kintanar admitted that she earned income for the taxable years and

that she is aware of her legal obligations to file income tax returns therefore, she

claimed that it was her husband who took charge in filing the returns. However, the

husband claimed that he hired an accountant to handle the transactions but apparently

failed to. With this, the Court found how the accused relied on her husband without

assuring the willingness to perform her legal duty. Also the husband admitted that he

merely browsed over the contents of their income tax returns. These prove that the

accused is “consciously avoiding” the facts regarding the filing of the required income

tax returns. It was further found by the Court that the accused even presented

fabricated and flawed income tax returns which if were actually filed, were still misfiled

in a wrong revenue district.

With the deliberate lack of concern on part of the accused in performing her tax

obligations, the requirement of the “willfulness” of omission under Section 255 was met.

After taking into consideration all evidences presented by both parties, the Court found

the accused guilty beyond reasonable doubt on both information filed against her. Thus,

Kintanar was sentenced to suffer an indeterminate penalty of one year to two years and

a fine in the amount of P10,000 for each charge, in addition to the payment of her basic

income tax deficiencies with penalties, surcharges and interests.

II.

The content of the article reminds us to be a responsible citizen of our country

and that we should also perform our legal duties in a timely manner. It also reminds

every taxpayer not to take lightly his tax obligations. There are laws which are

constituted for every legal obligation and must be followed. One of which is the Tax

Code containing the official procedures regarding taxation. We must be aware and learn

about these things in order to appreciate its real purpose and understand the

consequences in violation of the law.

The article itself can be considered a good example of a violation of the Tax

Code. It gives a clear view of how tax laws and regulations work and how the courts

interpret these laws. In this case of the Kintanar spouses, the court did not just only

prove the failure of the accused to file a tax return but also conditions regarding how

knowledgeable she is about her legal obligations. Along with this, the court must also

prove that the failure to make a return was willful.

Knowing these things would give us more idea about what actions and reasons

are capable of convicting an accused person in a civil or criminal case. It will also give

us more knowledge and awareness about cases like this. This way, we would know

what to do and not to do in the performance of our legal obligations.

III.

The article shows that cases regarding taxes are also not simply given decisions.

It is deliberated by the Court with evidences taken into consideration in order to give a

just verdict. One thing which prove this is how to establish the offense of failure to make

or file a return. Under Section 255 of the Tax Code, the prosecution must prove three

essential elements beyond reasonable doubt which are: (1) the accused was a person

required to make a file or return; (2) the accused failed to make or file a return at the

time required by the law and; (3) the failure to make or file the return was willful. This

ensures that the due process is deliberated and made just.

Another point in the article is how the non-filing of a tax return considered mala

prohibita. Mala prohibita is a Latin phrase used in law to refer to crimes made so

by statute. The phrase literally means “wrong because prohibited”. An offense that

is malum prohibitum, for example, may not appear on the face to directly violate moral

standards: an example is the law against insider trading. In short, the offense made is

not essentially evil but is considered wrong because it is prohibited by an existing law.

In this condition of the offense, except for the requirement under Section 255 that the

omission must be willful, the proof of criminal intent is unnecessary.

Filing an income tax return in a revenue district of which the taxpayer is not a

resident is another point. In the article, the accused presented fabricated and flawed

income tax return which was filed in a revenue district of which she is a non-resident.

The Court said that even having those filed returns, such were misfiled.

With all these points included in the article, making or filing a return is a matter

that should not be taken lightly. Every citizen must be knowledgeable about these

things and issues. We should be aware of the laws in our country and at least

understand them for we to know how to act right as a responsible citizen.