Digest for Tax 2

This fact need not be proven by an

CIR v. Pascor Realty
DOCTRINE/S: An assessment is not
necessary before a criminal charge can be
filed.
FACTS: The BIR examined the books of
account of Pascor Realty and Devt Corp for
years 1986, 1987 and 1988, from which a
tax liability of 10.5 Million Pesos was
found. Based on the recommendations of the
examiners, the CIR filed an information
with the DOJ for tax evasion against the
officers of Pascor. Upon receipt of the
subpoena, the latter filed an urgent request
for reconsideration/reinvestigation with the
CIR, which was immediately denied upon
the ground that no formal assessment has yet
been issued by the Commisioner. Pascor
elevated the CIR's decision to the CTA on a
petition for review. The CIR filed a Motion
to Dismiss on the ground of lack of
jurisdiction of CTA as there was no formal
assessment made against the respondents.
The CTA dismissed the motion, hence this
petition.
assessment.
The issuance of an assessment must be
distinguished from the filing of a complaint.
Before an assessment is issued, there is, by
practice, a pre-assessment notice sent to the
taxpayer. The taxpayer is then given a
chance to submit position papers and
documents to prove that the assessment is
unwarranted. If the commissioner is
unsatisfied, an assessment signed by him or
her is then sent to the taxpayer informing the
latter specifically and clearly that an
assessment has been made against him or
her. In contrast, the criminal charge need not
go through all these. The criminal charge is
filed directly with the DOJ. Thereafter, the
taxpayer is notified that a criminal case had
been filed against him, not that the
commissioner has issued an assessment. It
must be stressed that a criminal complaint is
instituted not to demand payment, but to
penalize the taxpayer for violation of the
Tax Code.

ISSUE/S: s a formal assessment necessary

in the filing of a criminal complaint

RULING: No. Section 222 of the NIRC

states that an assessment is not necessary
before a criminal charge can be filed. This is
the general rule. Private respondents failed
to show that they are entitled to an
exception. Moreover, the criminal charge
need only be supported by a prima facie
showing of failure to file a required return.

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