Professional Documents
Culture Documents
*
G.R. No. 104171. February 24, 1999.
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 1/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
_______________
* THIRD DIVISION.
547
Same; Same; Same; The fact alone that a taxpayer may have
sold its property for a price lesser than its declared fair market
value does not constitute a false return which contains wrong
information due to mistake, carelessness or ignorance, for it is
possible that real property may be sold for less than adequate
consideration for a bona fide business purpose.—Petitioner insists
that private respondent committed “falsity” when it sold the
property for a price lesser than its declared fair market value.
This fact alone did not constitute a false return which contains
wrong information due to mistake, carelessness or ignorance. It is
possible that real property may be sold for less than adequate
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 2/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
Same; Same; Same; The fact that a taxpayer sells its real
property for a price less than its declared fair market value did not
by itself justify a finding of false return.—The fact that private
respondent sold its real property for a price less than its declared
fair market value did not by itself justify a finding of false return.
In-
548
legal requirement to file a return. In other words, the fact that the
sale transaction may have partly resulted in a donation does not
change the fact that private respondent already reported its
income for 1974 by filing an income tax return.
PANGANIBAN, J.:
The Case
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 4/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
The Facts
4
The facts are undisputed. Private Respondent BF Goodrich
Phils., Inc. (now Sime Darby International Tire Co., Inc.),
was an American-owned and controlled corporation
previous to July 3, 1974. As a condition for approving the
manufacture by private respondent of tires and other
rubber products, the Central Bank of the Philippines
required that it should develop a rubber plantation. In
compliance with this require-
________________
550
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 5/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 6/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
Hence, this
7
Petition for Review under Rule 45 of the Rules
of Court.
___________________
552
The Issues
“I
II
___________________
553
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 8/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
__________________
554
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 9/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
___________________
555
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 10/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
______________________
1991 ed.; and Ruben E. Agpalo, Statutory Construction, p. 227, 2nd ed.
(1990).
13 Aznar v. Court of Tax Appeals, 58 SCRA 519, 541, August 23, 1974.
The word “false” is defined as an adjective which means not true or not
correct (Dictionary of Law, 2nd ed., Peter Collin Publishing [1997]).
556
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 11/13
1/7/2018 SUPREME COURT REPORTS ANNOTATED VOLUME 303
________________________
557
——o0o——
558
http://www.central.com.ph/sfsreader/session/00000160d11dffd9cf993860003600fb002c009e/t/?o=False 13/13