G.R. N . 182399. Ma 12, 2014.

*
CS GARMENT, INC.,** pe i ioner, s. COMMISSIONER OF
INTERNAL REVENUE, responden .

Ta a ion; Ta Amne ; In he con e of a amne , he igh

efe ed o a e ho e a i ing o of he i ilege and imm ni ie g an ed
nde he a licable a amne la . A caref l scr in of he 2007 Ta
Amnes La o ld ell s ha he la con ains o pes of condi ions
one s spensi e, he o her resol or . Borro ing from he concep s nder o r
Ci il Code, a condi ion ma be classi ed as en i e hen he f l llmen
of he condi ion res l s in he acq isi ion of righ s. On he o her hand, a
condi ion ma be considered e ol o hen he f l llmen of he
condi ion res l s in he e ing ishmen of righ s. In he con e of a
amnes , he righ s referred o are hose arising o of he pri ileges and
imm ni ies gran ed nder he applicable a amnes la .
Same; Same; While a amne , imila o a a e em ion, m be
con ed ic l again he a a e and libe all in fa o of he a ing
a ho i , i i al o a ell- e led doc ine ha he le-making o e of
admini a i e agencie canno be e ended o amend o e and a o
e i emen o o emb ace ma e no o iginall encom a ed b he la .
While a amnes , similar o a a e emp ion, m s be cons r ed s ric l
agains he a pa er and liberall in fa or of he a ing a hori , i is also a
ell-se led doc rine ha he r le-making po er of adminis ra i e agencies
canno be e ended o amend or e pand s a or req iremen s or o
embrace ma ers no originall encompassed b he la . Adminis ra i e
reg la ions sho ld al a s be in accord i h he pro isions of he s a e
he seek o carr in o effec , and an res l ing inconsis enc

* FIRST DI ISION.

** T C .A
, A I CS G ,I .
CS G , I ., C T
A . See P R 1, . . 1 ( 23 M 2008), R ll , . 10.

615

shall be resol ed in fa or of he basic la . We h s de ni i el declare ha

he e cep ion [i]ss es and cases hich ere r led b an co r (e en
i ho nali ) in fa or of he BIR prior o amnes a ailmen of he
a pa er nder BIR RMC 19-2008 is in alid, as he e cep ion goes be ond
he scope of he pro isions of he 2007 Ta Amnes La .
PETITION for re ie on cer iorari of he decision and resol ion of
he Co r of Appeals.
The fac s are s a ed in he opinion of he Co r .
Sa ad & A cia e for pe i ioner.
C a B. O i special co nsel for responden .

SERENO, CJ.:
Before he Co r is a R le 45 pe i ion for re ie on ce i a i,
assailing he respec i e Decision 1 and Resol ion 2 of he Co r of
Ta Appeals (CTA) e ba c in EB Case No. 287. These j dgmen s
in rn af rmed he Decision 3 and he Resol ion 4 of he CTA
Second Di ision, hich ordered he cancel-

_______________
1 CS Ga e , I c. . C e f I e a Re e e, EB Case No. 287
(CTA e ba c, 14 Januar 2008), slip op., R , at pp. 40-62 (hereinafter CTA e
ba c Decision).
2 CS Ga e , I c. . C e f I e a Re e e, EB Case No. 287
(CTA e ba c, 2 April 2008), slip op., R , at pp. 37-39 (hereinafter CTA e ba c
Resolution). Both the Decision and the Resolution of the CTA e ba c were penned
b CTA Associate Justice Caesar A. Casanova and concurred in b Justices Ernesto
D. Acosta, Juanito C. Casta eda, Jr., Lovell R. Bautista, Erlinda P. U , and Olga
Palanca-Enrique .
3 CS Ga e , I c. . C e f I e a Re e e, CTA Case No. 6520
(CTA 2nd Div., 4 Januar 2007), slip op., R , at pp. 63-94 (hereinafter CTA 2nd Div.
Decision).
4 CS Ga e , I c. . C e f I e a Re e e, CTA Case No. 6520
(CTA 2nd Div., 25 Ma 2007), slip op., R , at pp. 95-97 (hereinafter CTA Sec. 2nd
Div. Resolution). Both the Decision and

616

la ion of cer ain i ems in he 1998 a assessmen s agains pe i ioner

CS Garmen , Inc. (CS Garmen or pe i ioner). Accordingl ,
pe i ioner as direc ed o pa he B rea of In ernal Re en e (BIR)
he remaining por ion of he a assessmen s. This por ion as
comprised of he o s anding de cienc al e-added a (VAT) on
CS Garmen s ndeclared local sales and on he inciden al sale of a
mo or ehicle; de cienc doc men ar s amp a (DST) on a lease
agreemen ; and de cienc income a as a res l of he disallo ed
e penses and ndeclared local sales. Ho e er, hile he presen
case as pending before his Co r , CS Garmen led a
Manifes a ion and Mo ion s a ing ha he la er had a ailed i self of
he go ernmen s a amnes program nder Rep blic Ac No.
(R.A.) 9480, or he 2007 Ta Amnes La .

Facts
We reprod ce he narra ion of fac s c lled b he CTA e ba c 5
as follo s:
 Pe i ioner [CS Garmen ] is a domes ic corpora ion d l organi ed and
e is ing nder and b ir e of he la s of he Philippines i h principal
of ce a Road A, Ca i e Eco one, Rosario, Ca i e. On he o her hand,
responden is he d l appoin ed Commissioner of In ernal Re en e of he
Philippines a hori ed nder la o perform he d ies of said of ce,
incl ding, in e alia, he po er o assess a pa ers for [alleged] de cienc
in ernal re en e a liabili ies and o ac pon adminis ra i e pro es s or
req es s for reconsidera ion/rein es iga ion of s ch assessmen s.

R CTA S D CTA A J J C.
C ,J. J E P. U O P -E .
5 CTA e ba c D , a 1, . 2-5, R ll , . 41-44.

617

Pe i ioner is regis ered i h he Philippine Economic Zone A hori

(PEZA) nder Cer i ca e of Regis ra ion No. 89-064, d l appro ed on
December 18, 1989. As s ch, i is engaged in he b siness of man fac ring
garmen s for sale abroad.
On No ember 24, 1999, pe i ioner [CS Garmen ] recei ed from
responden [CIR] Le er of A hori No. 00012641 da ed No ember 10,
1999, a hori ing he e amina ion of pe i ioner s books of acco n s and
o her acco n ing records for all in ernal re en e a es co ering he period
Jan ar 1, 1998 o December 31, 1998.
On Oc ober 23, 2001, pe i ioner recei ed e (5) formal demand le ers
i h accompan ing Assessmen No ices from responden , hro gh he
Of ce of he Re en e Direc or of Re en e Region No. 9, San Pablo Ci ,
req iring i o pa he alleged de cienc VAT, Income, DST and
i hholding a assessmen s for a able ear 1998 in he aggrega e amo n
of P2,046,580.10 broken do n as follo s:

618
 On No ember 20, 2001, or i hin he 30-da period prescribed nder
Sec ion 228 of he Ta Code, as amended, pe i ioner led a formal ri en
pro es i h he responden assailing he abo e assessmen s.
On Jan ar 11, 2002, or i hin he si -da period af er he ling of he
pro es , pe i ioner s bmi ed o he Assessmen Di ision of Re en e Region
No. 9, San Pablo Ci , addi ional doc men s in s ppor of i s pro es .
Responden failed o ac i h nali on he pro es led b pe i ioner
i hin he period of one h ndred eigh (180) da s from Jan ar 11, 2002
or n il J l 10, 2002. Hence, pe i ioner appealed before [ he CTA] ia a
Pe i ion for Re ie led on A g s 6, 2002 or i hin hir (30) da s from
he las da of he aforesaid 180-da period.
The case as raf ed o he Second Di i ion of [ he CTA] for decision.
Af er rial on he meri s, he Second Di i ion rendered he Assailed Decision
on Jan ar 4, 2007 pon hich he Second Di ision cancelled responden s
assessmen agains CS Garmen s for de cienc e panded i hholding a es
for CY 1998 amo n ing o P47,880.00, and par iall cancelled he
de cienc DST assessmen amo n ing o P1,963.00. Ho e er, he Second
Di i ion pheld he alidi of he de cienc income a assessmen s b
s bjec ing he disallo ed e penses in he amo n of P14,851,478.83 and a
por ion of he ndeclared local sales P1,541,936.60 (amo n ing o
P1,500,000.00) o income a a he special ra e of 5%. The remainder of
ndeclared local sales of P1,541,936.06 (amo n ing o P41,936.60) as
s bjec ed o income a a he ra e of 34%. The Second Di i ion fo nd ha
o al a

619

liabili of CS Garmen s amo n ed o P2,029,570.12, pl s 20% delinq enc

in eres p rs an o Sec ion 249(C)(3), and comp ed he same as follo s:

On Jan ar 29, 2007, CS Garmen s filed i s Mo ion for Par ial

Reconsidera ion of he said decision. On Ma 25, 2007, in a resol ion, he
Second Di ision denied CS Garmen s mo ion for lack of meri . (Ci a ions
omi ed)
 Pe i ioner appealed he case o he CTA e ba c and alleged he
follo ing: (1) he Formal Assessmen No ices (FAN) iss ed b he
Commissioner of In ernal Re en e (CIR) did no compl i h he
req iremen s of he la ; (2) he income genera ed b CS Garmen
from i s par icipa ion in he Ca i e E por Processing Zone s rade
fairs and from i s sales o emplo ees ere no s bjec o 10% VAT;
(3) he sale of he compan ehicle o i s general manager as no
s bjec o 10% VAT; (4) i had no ndeclared local sales in he
amo n of P1,541,936.60; and (5) R le XX, Sec ion 2 of he PEZA
R les and Reg la ions allo ed ded c ions from he e penses i had
inc rred in connec ion i h ad er ising and represen a ion; clinic
and of ce s pplies; commissions and professional fees;
ranspor a ion, freigh and handling, and e por fees; and licenses
and o her a es.
The CTA e ba c af rmed he Decision and Resol ion of he
CTA Second Di ision. As regards he rs iss e, he ba c r led ha
he CIR had d l apprised CS Garmen of he fac al and legal bases
for assessing he la er s liabili for

620

de cienc income a , as sho n in he a ached Sched le of

Discrepancies pro ided o pe i ioner; and in he s bseq en
reference of he CIR o R le XX, Sec ion 2 of he R les and
Reg la ions of R.A. 7916. Wi h respec o he second iss e, he CTA
prono nced ha he income genera ed b CS Garmen from he
rade fairs as s bjec o in ernal re en e a es, as hose
ransac ions ere considered domes ic sales nder R.A. 7916,
o her ise kno n as he Special Economic Zone Ac . Wi h respec o
he hird iss e, he CTA e ba c declared ha he sale of he mo or
ehicle b CS Garmen o he la er s general manager in he amo n
of P1.6 million as s bjec o VAT, since he sale as considered an
inciden al ransac ion i hin he meaning of Sec ion 105 of he
NIRC. On he fo r h iss e, he CTA fo nd ha CS Garmen had
failed o declare he la er s o al local sales in he amo n of
P1,541,936.60 in i s 1998 income a re rn. The a co r hen
calc la ed he income a liabili of pe i ioner b s bjec ing P1.5
million of ha liabili o he preferen ial income a ra e of 5%.
This amo n represen ed he e en of he a hori of CS Garmen ,
as a PEZA-regis ered en erprise, o sell in he local marke . The
normal income a ra e of 34% as hen charged for he e cess
amo n of P41,936.60. Finall , as regards he f h iss e, he CTA
r led ha Sec ion 2, R le XX of he PEZA R les hich
en mera es he speci c ded c ions for ECOZONE E por
En erprises does no men ion cer ain claims of pe i ioner as
allo able ded c ions.
Aggrie ed, CS Garmen led he presen Pe i ion for Re ie
assailing he Decision of he CTA e ba c. Ho e er, on 26
Sep ember 2008, hile he ins an case as pending before his
Co r , pe i ioner led a Manifes a ion and Mo ion s a ing ha i had
a ailed i self of he go ernmen s a amnes program nder he
2007 Ta Amnes La . I h s pra s ha e ake no e of i s
a ailmen of he a amnes and con rm ha i is en i led o all he
imm ni ies and pri ileges nder he la . I has s bmi ed o his
Co r he follo ing doc men s, hich ha e allegedl been led
i h Eq i able PCI

621

Bank Ca i e EPZA Branch, a s pposed a hori ed agen -bank of

he BIR: 6
1. No ice of A ailmen of Ta Amnes nder R.A. 9480
2. S a emen of Asse s, Liabili ies, and Ne or h (SALN)
3. Ta Amnes Re rn (BIR Form No. 2116)
4. Ta Amnes Pa men Form (Accep ance of Pa men Form
or BIR Form No. 0617)
5. Eq i able PCI Bank s BIR Pa men Form indica ing ha CS
Garmen deposi ed he amo n of P250,000 o he acco n of
he B rea of Treas r BIR
On 26 Jan ar 2009, he Of ce of he Solici or General (OSG)
led i s Commen objec ing o he Manifes a ion and Mo ion of CS
Garmen . 7 The OSG asser s ha he ling of an applica ion for a
amnes does no b i self en i le pe i ioner o he bene s of he la ,
as he BIR m s s ill assess he her pe i ioner as eligible for hese
bene s and he her all he condi ions for he a ailmen of a
amnes had been sa is ed. Ne , he OSG claims ha he BIR is
gi en a one- ear period o con es he correc ness of he SALN led
b CS Garmen , h s making pe i ioner s mo ion prema re. Finall ,
he OSG con ends ha p rs an o BIR Re en e Memorand m
Circ lar No. (RMC) 19-2008, pe i ioner is disq ali ed from
enjo ing he bene s of he Ta Amnes La , since a j dgmen as
alread rendered in fa or of he BIR prior o he a amnes
a ailmen . The OSG poin s o ha CS Garmen s bmi ed i s
applica ion for a amnes onl on 6 March 2008, hich as
almos o mon hs af er he CTA e ba c iss ed i s 14 Jan ar 2008
Decision and more

_______________
6 Annexes A to E of CS Garment s Manifestation and Motion dated 25
September 2008, R , at pp. 171-175.
7 Comment (on Petitioner s Manifestation and Motion dated September 25,
2008) of the OSG ( led on 26 Januar 2009), R , at pp. 212-220.

622

han one ear af er he CTA Second Di ision iss ed i s 4 Jan ar

2007 Decision.
On 8 Febr ar 2010, he Co r req ired bo h par ies o prepare
and le heir respec i e memoranda i hin 30 da s from no ice.
Af er his Co r gran ed he mo ions for e ension led b he
par ies, he OSG e en all led i s Memorand m on 18 Ma 2010,
and CS Garmen on 7 J ne 2010. I is or h o no e ha in i s
Memorand m, he OSG did no raise an arg men i h respec o
pe i ioner s a ailmen of he a amnes program. Nei her did he
OSG den he a hen ici of he doc men s s bmi ed b CS
Garmen s or men ion ha a case had been led agains he la er for
a ailing i self of he a amnes program, aking in o acco n he
considerable lapse of ime from he momen pe i ioner led i s Ta
Amnes Re rn and S a emen of Asse s, Liabili ies, and Ne Wor h
in 2008.
On 17 J l 2013, he par ies ere ordered o mo e in he
premises 10 b informing he Co r of he s a s of he a amnes
a ailmen of pe i ioner CS Garmen , incl ding an s per ening
e en ha ma be of help o he Co r in i s immedia e disposi ion of
he presen case. F r hermore, he par ies ere direc ed o indica e
i e a ia (a) he her CS Garmen had complied i h he
req iremen s of he 2007 Ta Amnes La , aking no e of he
aforemen ioned doc men s s bmi ed; (b) he her a case had been
ini ia ed agains pe i ioner, i h respec o i s a ailmen of he a
amnes program; and (c) he her responden CIR as s ill
in eres ed in

_______________
Order dated 8 Februar 2010, R , at pp. 229-230.
Order dated 17 Jul 2013, R , at pp. 321-323.
10 To clarif , an order to move in the premises, which is a term of art
emplo ed in this Court, simpl means that the parties are obliged to inform the Court
of pertinent developments that ma help in the immediate disposition of the case. See
O ea .L e , G.R. No. L-29727, 14 December 1988, 168 SCRA 431.

623

p rs ing he case. Pe i ioner e en all led i s Compliance 11 on

27 A g s 2013, and he OSG on 29 No ember 2013. 12
According o he OSG, 13 CS Garmen had alread complied
i h all doc men ar req iremen s of he 2007 Ta Amnes La . I
also s a ed ha he BIR Li iga ion Di ision had no ini ia ed an
case agains pe i ioner rela i e o he la er s a amnes
applica ion. Ho e er, he OSG rei era ed ha he CIR as s ill
in eres ed in p rs ing he case.

Issue

The hreshold q es ion before his Co r is he her or no CS

Garmen is alread imm ne from pa ing he de cienc a es s a ed
in he 1998 a assessmen s of he CIR, as modi ed b he CTA.

Discussion

Ta amnes refers o he ar ic la ion of he absol e ai er b a

so ereign of i s righ o collec a es and po er o impose penal ies
on persons or en i ies g il of iola ing a a la . 14 Ta amnes
aims o gran a general reprie e o a e aders ho ish o come
clean b gi ing hem an oppor ni o s raigh en o heir records.
15 In 2007, Congress enac ed R.A. 9480, hich gran ed a a
amnes co ering all na ional in ernal re en e a es for he a able
ear 2005 and prior ears, i h or i ho assessmen s d l iss ed
herefor,

_______________
11 R , at pp. 324-352.
12 Id., at pp. 366-374.
13 Compliance ( led on 29 November 2013) at p. 2, R , at p. 367.
14 Me a Ba a dT C . .C e f I e a Re e e, G.R.
No. 178797, 4 August 2009, 595 SCRA 234; and P e Ba g C a
(N : G ba B e Ba , I c.) . C e f I e a Re e e, G.R. No.
170574, 30 Januar 2009, 577 SCRA 366.
15 Id.

624

ha ha e remained npaid as of December 31, 2005. 16 These

na ional in ernal re en e a es incl de (a) income a ; (b) VAT; (c)
es a e a ; (d) e cise a ; (e) donor s a ; (f) doc men ar s amp a ;
(g) capi al gains a ; and (h) o her percen age a es. 17 P rs an o
Sec ion 6 of he 2007 Ta Amnes La , hose ho a ailed
hemsel es of he bene s of he la became imm ne from he
pa men of a es, as ell as addi ions here o, and he app r enan
ci il, criminal or adminis ra i e penal ies nder he Na ional In ernal
Re en e Code of 1997, as amended, arising from he fail re o pa
an and all in ernal re en e a es for a able ear 2005 and prior
ears.

Amnest ta pa ers ma immediatel

enjo the pri ileges and immunities
under the 2007 Ta Amnest La , as
soon as the ful ll the suspensi e
conditions imposed therein

A caref l scr in of he 2007 Ta Amnes La o ld ell s

ha he la con ains o pes of condi ions one s spensi e, he
o her resol or . Borro ing from he concep s nder o r Ci il Code,
a condi ion ma be classi ed as e i e hen he f l llmen of
he condi ion res l s in he acq isi ion of righ s. On he o her hand, a
condi ion ma be considered e hen he f l llmen of he
condi ion res l s in he e ing ishmen of righ s. In he con e of
a amnes , he righ s referred o are hose arising o of he
pri ileges and imm ni ies gran ed nder he applicable a amnes
la .
The imposi ion of a s spensi e condi ion nder he 2007 Ta
Amnes La is e iden from he follo ing pro isions of he la :

_______________
16 R.A. 9480, Sec. 1.
 17 BIR Revenue Memorandum Circular (RMC) No. 19-2008, 22 Februar 2008.

625

2007 Tax Amnesty Law – Republic Act No. 9480

SECTION 2. A ailmen of he Amne . Any person, natural or
juridical, who wishes to avail himself of the tax amnesty a hori ed and
gran ed nder his Ac shall file i h he B rea of In ernal Re en e (BIR) a
notice and Tax Amnesty Return accompanied by a Statement of Assets,
Liabilities and Networth (SALN) as of December 31, 2005, in s ch form as
ma be prescribed in he implemen ing r les and reg la ions (IRR) of his Ac ,
and pay the applicable amnesty tax i hin si mon hs from he effec i i of
he IRR.
SECTION 4. P e m ion of Co ec ne of he SALN. The SALN
as of December 31, 2005 shall be considered as true and correct except
where the amount of declared networth is understated o he e en of
hir percen (30%) or more as may be established in proceedings
initiated by, or at the instance of, parties other than the BIR or its
agents: P o ided, Tha s ch proceedings m s be ini ia ed i hin one ear
follo ing he da e of he ling of he a amnes re rn and he SALN.
Findings of or admission in congressional hearings, o her adminis ra i e
agencies of go ernmen , and/or co r s shall be admissible o pro e a hir
percen (30%) nder-declara ion.
SECTION 6. Imm ni ie and P i ilege . Those who availed
themselves of the tax amnesty under Section 5 hereof, and ha e f ll
complied i h all i s condi ions shall be en i led o he follo ing imm ni ies
and pri ileges:
(a) The taxpayer shall be immune from the payment
of taxes, as well as additions thereto, and he
app r enan ci il, criminal or adminis ra i e penal ies
nder he Na ional In ernal Re en e Code of 1997, as
amended, arising from he fail re o pa an and all
in ernal re en e a es for a able ear 2005 and prior
ears.
(b) The taxpayer s Tax Amnesty Return and the
SALN as of December 31, 2005 shall

626

not be admissible as evidence in all proceedings ha

per ain o a able ear 2005 and prior ears, insofar as
s ch proceedings rela e o in ernal re en e a es,
before j dicial, q asi-j dicial or adminis ra i e bodies
in hich he is a defendan or responden , and e cep
for he p rpose of ascer aining he ne or h beginning
Jan ar 1, 2006, the same shall not be examined,
inquired or looked into by any person or
government of ce. However, the taxpayer may use
this as a defense, whenever appropriate, in cases
brought against him.
 (c) The books of accounts and other records of the
taxpayer for the years covered by the tax amnesty
availed of shall not be examined: P o ided, Tha he
Commissioner of In ernal Re en e ma a hori e in
ri ing he e amina ion of he said books of acco n s
and o her records o erif he alidi or correc ness
of a claim for an a ref nd, a credi (o her han
ref nd or credi of a es i hheld on ages), a
incen i es, and/or e emp ions nder e is ing la s.
All these immunities and privileges shall not apply where the person
failed to le a SALN and the Tax Amnesty Return, or where the amount
of networth as of December 31, 2005 is proven to be understated o he
e en of hir percen (30%) or more, in accordance i h he pro isions of
Sec ion 3 hereof.
SECTION 7. When and Whe e o File and Pa . The ling of he Ta
Amnes Re rn and he pa men of he amnes a for hose a ailing
hemsel es of he a amnes shall be made i hin si mon hs s ar ing from
he effec i i of he IRR. I shall be led a he of ce of he Re en e
Dis ric Of cer hich has j risdic ion o er he legal residence or principal
place of b siness of he ler. The Revenue District Of cer shall issue an
acceptance of payment form authorizing an au-

627

thorized agent bank, or in the absence thereof, the collection agent or

municipal treasurer concerned, to accept the amnesty tax payment.
Department of Finance Order No. 29-07: Rules and Regulations to
Implement R.A. 9480

SECTION 6. Me hod of A ailmen of Ta Amne .

3. Pa men of Amne Ta and F ll Com liance. Upon ling of the

Tax Amnesty Return in accordance i h Sec. 6 (2) hereof, he taxpayer
shall pay the amnesty tax to the authorized agent bank or in he absence
hereof, he Collection Agent or duly authorized Treasurer of he ci or
m nicipali in hich s ch person has his legal residence or principal place
of b siness.
The RDO shall issue suf cient Acceptance of Payment Forms, as ma
be prescribed b he BIR for the use of or to be accomplished by he
bank, he collection agent or he Treasurer, showing the acceptance of
the amnesty tax payment. In case of he a hori ed agen bank, he branch
manager or he assis an branch manager shall sign he accep ance of
pa men form.
The Acceptance of Payment Form, the Notice of Availment, the
SALN, and the Tax Amnesty Return shall be submitted to the RDO,
which shall be received only after complete payment. The completion of
these requirements shall be deemed full compliance with the provisions
of R.A. 9480. (Emphases s pplied)
 In a ailing hemsel es of he bene s of he a amnes
program, a pa ers m s rs accomplish he follo ing forms and
prepare hem for s bmission: (1) No ice of A ailmen of Ta
Amnes Form; (2) Ta Amnes Re rn Form (BIR Form No. 2116);
(3) S a emen of Asse s, Liabili ies and Ne or h (SALN) as of
December 31, 2005; and (4) Ta Amnes Pa -

628

men Form (Accep ance of Pa men Form or BIR Form No. 0617).
1
The a pa ers m s hen comp e he amnes a d e in
accordance i h he ra es pro ided in Sec ion 5 of he la , 1 sing
as a base heir ne or h as of 31 December 2005 as declared in
heir SALNs. A heir op ion, he re en e dis ric of ce (RDO) of
he BIR ma assis hem in accomplishing he forms and comp ing
he a able base and he amnes a d e. 20 The RDO, ho e er, is
disallo ed from looking in o, q es ioning or e amining he eraci
of he en ries con ained in he Ta Amnes Re rn, SALN, and
o her doc men s he ha e s bmi ed. 21 Using he Ta Amnes
Pa men Form, he a pa ers m s make a comple e pa men of he
comp ed amo n o an a hori ed agen bank, a collec ion agen , or
a d l a hori ed reas rer of he ci or m nicipali . 22
Thereaf er, he a pa ers m s le i h he RDO or an a hori ed
agen bank he (1) No ice of A ailmen of Ta Amnes Form; (2)
Ta Amnes Re rn Form (BIR Form No.

_______________
1 See R.A. 9480, Sec. 2; Department of Finance Department Order No. (DOF
D.O.) 29-07, Rule II, Sec. 6(1) (Implementing Rules and Regulations of R.A. 9480);
BIR RMC No. 19-2008, 22 Februar 2008; and BIR RMC No. 69-2007, 5 November
2007.
1 R.A. 9480, Sec. 5 provides: G a f Ta A e . Except for the persons or
cases covered in Section 8 hereof, an person, whether natural or juridical, ma avail
himself of the bene ts of ta amnest under this Act, and pa the amnest ta
due thereon, based on his networth as of December 31, 2005 as declared in the
SALN as of said period, in accordance with the following schedule of amnest ta
rates and minimum amnest ta pa ments required: x x x x
20 DOF D.O. 29-07, Rule II, Sec. 6(2)(c); BIR RMC No. 19-2008, 22 Februar
2008.
21 DOF D.O. 29-07, Rule II, Sec. 6(2)(c). See R.A. 9480, Sec. 6.
22 DOF D.O. 29-07, Rule II, Sec. 6(3); R.A. 9480, Secs. 2 & 7; and BIR RMC
No. 69-2007, 5 November 2007.

62

2116); (3) SALN; and (4) Ta Amnes Pa men Form. 23 The

RDO shall onl recei e hese doc men s af er comple e pa men is
made, as sho n in he Ta Amnes Pa men Form. 24 I m s be
no ed ha he comple ion of hese req iremen s shall be deemed
f ll compliance i h he pro isions of R.A. 9480. 25 In o r
considered ie , his r le means ha amnes a pa ers ma
immedia el enjo he pri ileges and imm ni ies nder he 2007 Ta
Amnes La as soon as he aforemen ioned doc men s are d l
recei ed.
The OSG has alread con rmed 26 o his Co r ha CS
Garmen has complied i h all of he doc men ar req iremen s of
he la . Conseq en l , and con rar o he asser ion of he OSG, no
f r her assessmen b he BIR is necessar . CS Garmen is no
en i led o in oke he imm ni ies and pri ileges nder Sec ion 6 of
he la .
Similarl , e rejec he con en ion of OSG ha he BIR as
gi en a one- ear period o con es he correc ness of he SALN led
b CS Garmen , h s making pe i ioner s mo ion prema re. Nei her
he 2007 Ta Amnes La nor Depar men of Finance (DOF) Order
No. 29-07 (Ta Amnes La IRR) imposes a ai ing period of one
ear before he applican can enjo he bene s of he Ta Amnes
La . I can be s rmised from he ci ed pro isions ha he la
in ended he immedia e enjo men of he imm ni ies and pri ileges
of a amnes pon f l lmen of he req iremen s. F r her, a
reading of Sec ions 4 and 6 of he 2007 Ta Amnes La sho s
ha Congress has adop ed a no q es ions asked polic , so long as
all he req iremen s of he la and he r les

_______________
23 See R.A. 9480, Sec. 2; DOF D.O. 29-07, Rule II, Sec. 6(1); BIR RMC No. 19-
2008, 22 Februar 2008; and BIR RMC No. 69-2007, 5 November 2007.
24 DOF D.O. 29-07, Rule II, Sec. 6(3).
25 DOF D.O. 29-07, Rule II, Sec. 6(3); P e Ba g C a .
C e f I e a Re e e, a note 14. See R.A. 9480, Sec. 2 in relation to
Sec. 6.
26 Compliance (filed on 29 November 2013) at p. 2, R , at p. 367.

630

are sa is ed. The one- ear period referred o in he la sho ld h s

be considered onl as a prescrip i e period i hin hich hird
par ie , meaning par ies o her han he BIR or i s agen s, can
q es ion he SALN no as a ai ing period d ring hich he BIR
ma con es he SALN and he a pa er pre en ed from enjo ing he
imm ni ies and pri ileges nder he la .
This clari ca ion, ho e er, does no mean ha he amnes
a pa ers o ld go sco -free in case he s bs an iall nders a e
he amo n s of heir ne or h in heir SALN. The 2007 Ta
Amnes La imposes a resol or condi ion insofar as he
enjo men of imm ni ies and pri ileges nder he la is concerned.
P rs an o Sec ion 4 of he la , hird par ies ma ini ia e
proceedings con es ing he declared amo n of ne or h of he
amnes a pa er i hin one ear follo ing he da e of he ling of
he a amnes re rn and he SALN. Sec ion 6 hen s a es ha All
hese imm ni ies and pri ileges shall no appl here he
amo n of ne or h as of December 31, 2005 is pro en o be
nders a ed o he e en of hir percen (30%) or more, in
accordance i h he pro isions of Sec ion 3 hereof. Accordingl ,
Sec ion 10 pro ides ha amnes a pa ers ho illf ll nders a e
heir ne or h shall be (a) liable for perj r nder he Re ised Penal
Code; and (b) s bjec o immedia e a fra d in es iga ion in order
o collec all a es d e and o criminall prosec e hose fo nd o
ha e illf ll e aded la f l a es d e.
Ne er heless, in his case e no e ha he OSG has alread
indica ed 27 ha he CIR had no led a case rela i e o he a
amnes applica ion of CS Garmen , from he ime he doc men s
ere led in March 2008. Nei her did he OSG men ion ha a hird
par had ini ia ed proceedings challenging he declared amo n of
ne or h of he amnes a pa er i hin he one- ear period.

_______________
27 Compliance (filed on 29 November 2013) at p. 2, R , at p. 367.

631

Ta pa ers ith pending ta cases

are still quali ed to a ail them-
sel es of the ta amnest program.

Wi h respec o i s las asser ion, he OSG q o es he follo ing

g idelines nder BIR RMC 19-2008 o es ablish ha CS Garmen is
disq ali ed from a ailing i self of he a amnes program: 2

A BASIC GUIDE ON THE TAX AMNESTY ACT OF 2007

The follo ing is a basic g ide for a pa ers ho ish o a ail of a
amnes p rs an of Rep blic Ac No. 9480 (Ta Amnes Ac of 2007).
Who may avail of the amnesty?

EXCEPT:
Wi hholding agen s i h respec o heir i hholding a
liabili ies
Those i h pending cases:
Under he j risdic ion of he PCGG
In ol ing iola ions of he An i-Graf and Corr p Prac ices
Ac
In ol ing iola ions of he An i-Mone La ndering La
For a e asion and o her criminal offenses nder he NIRC
and/or he RPC
Issues and cases which were ruled by any court (even
without nality) in favor of the BIR prior to amnesty
availment of the taxpayer. (e.g., Ta pa ers ho ha e failed o
 obser e or follo BOI and/or PEZA r les on en i lemen o
Income Ta Holida Incen i es and o her incen i es)

2 BIR RMC 19-2008, 22 F 2008.

632

Cases in ol ing iss es r led i h nali b he S preme

Co r prior o he effec i i of R.A. 9480 (e.g., DST on Special
Sa ings Acco n )
Ta es passed-on and collec ed from c s omers for remi ance
o he BIR
Delinq en Acco n s/Acco n s Recei able considered as asse s
of he BIR/Go ernmen , incl ding self-assessed a (Emphasis
s pplied)

To resol e he ma er, e refer o he basic e of he Ta

Amnes La and i s implemen ing r les and reg la ions, i .:

Republic Act No. 9480

SECTION 8. E ce ion . The a amnes pro ided in Sec ion 5

hereof shall no e end o he follo ing persons or cases e is ing as of he
effec i i of his Ac :

(f) Tax cases subject of nal and executory judgment

by the courts.
DOF Order No. 29-07: Rules and Regulations to Implement R.A. 9480
SECTION 5. E ce ion . The a amnes shall no e end o he
follo ing persons or cases e is ing as of he effec i i of R.A. 9480:

7. Tax cases subject of nal and executory judgment by

the courts. (Emphases s pplied)

We c ll from he aforemen ioned pro isions ha nei her he la

nor he implemen ing r les s a e ha a co r r ling ha has no
a ained nali o ld precl de he a ailmen of he bene s of he
Ta Amnes La . Bo h R.A. 9480 and DOF Order No. 29-07 are
q i e precise in declaring ha [ ]a cases bjec of nal and
e ec or j dgmen b he

633

co r s are he ones e cep ed from he bene s of he la . In fac ,

e ha e alread poin ed o he erroneo s in erpre a ion of he la
in Phi i i e Ba i g C a i (N : G ba B i e Ba ,
I c.) . C i i e f I e a Re e e, i .:
 The BIR s inclusion of “issues and cases which were ruled by any
court (even without nality) in favor of the BIR prior to amnesty
availment of the taxpayer as one of the exceptions in RMC 19-2008 is
misplaced. RA 9480 is speci call clear ha he e cep ions o he a
amnes program incl de a cases s bjec of nal and e ec or j dgmen
b he co r s. The presen case has no become nal and e ec or hen
Me robank a ailed of he a amnes program. 2 (Emphasis s pplied)

While a amnes , similar o a a e emp ion, m s be cons r ed

s ric l agains he a pa er and liberall in fa or of he a ing
a hori , 30 i is also a ell-se led doc rine 31 ha

_______________
2 S a note 14.
30 Me a Ba a dT C . .C e f I e a Re e e, G.R.
No. 178797, 4 August 2009, 595 SCRA 234 (citing P e Ba gC a ,
a note 14).
31 Pe e . Mace e , G.R. No. L-32166, 18 October 1977, 79 SCRA 450 (citing
Ca a a g . W a , 70 Phil. 726 [1940]; Pe e .R e a , 68 Phil. 328 [1939];
U.S. . T a M a, 29 Phil. 119 [1914]; Sa .E e , 109 Phil. 419 [1960];
Te . Me be f e B a d f Ad a , G.R. No. L-25619, 30 June 1970,
33 SCRA 585; Ma e . Ge e a A d g Of ce, G.R. No. L-28952, 29 December
1971, 42 SCRA 660; De a . Ca ee , G.R. No. L-21906, 29 August 1969, 29
SCRA 350; U e f Sa T a . B a d f Ta A ea , 93 Phil. 376 [1953];
E C ec de Re a I e a .V a , 69 Phil. 319 [1940]; W e & C . . Mee ,
78 Phil. 655 [1947]; and De Ma .P . Ve e a Ad a , G.R. No. L-27299,
27 June 1973, 51 SCRA 340); La d Ba f eP e .C f A ea , G.R.
Nos. 118712 and 118745, 05 Jul 1996, 258 SCRA 404 (citing S e P e , I c.
. Ce a Ba f eP e , 162

634

he r le-making po er of adminis ra i e agencies canno be

e ended o amend or e pand s a or req iremen s or o embrace
ma ers no originall encompassed b he la . Adminis ra i e
reg la ions sho ld al a s be in accord i h he pro isions of he
s a e he seek o carr in o effec , and an res l ing inconsis enc
shall be resol ed in fa or of he basic la . We h s de ni i el
declare ha he e cep ion [i]ss es and cases hich ere r led b
an co r (e en i ho nali ) in fa or of he BIR prior o amnes
a ailmen of he a pa er nder BIR RMC 19-2008 is in alid, as
he e cep ion goes be ond he scope of he pro isions of he 2007
Ta Amnes La . 32
Considering he comple ion of he aforemen ioned req iremen s,
e nd ha pe i ioner has s ccessf ll a ailed i self of he a
amnes bene s gran ed nder he Ta Amnes La . Therefore, e
no longer see an need o f r her disc ss he iss e of he de cienc
a assessmen s. CS Garmen is no deemed o ha e been absol ed
of i s obliga ions and is alread imm ne from he pa men of a es
incl ding he assessed de cienc in he pa men of VAT, DST,
and income a as af rmed b he CTA e ba c as ell as of he
addi ions here o (e.g., in eres s and s rcharges). F r hermore, he
 a amnes bene s incl de imm ni from he app r enan ci il,
criminal, or adminis ra i e penal ies nder he NIRC of 1997, as
amended, arising from he fail re

_______________
SCRA 628 [1988]; P e Pe e C a .M c a fP a, 198
SCRA 82 [1991]; and Ta g R a Ba . Ce a Ba , 146 SCRA 120 [1986]).
32 In P e Ba gC a ( a note 14), we ruled that the BIR was
misplaced in including in RMC 19-2008 as one of the exceptions those issues and
cases which were ruled b an court (even without nalit ) in favor of the BIR prior
to amnest availment of the taxpa er. Since in that case the bank availed itself of the
tax amnest program before the judgment against it had become nal and
executor , we resolved to set aside the CTA Decision; see also Me a Ba
a dT C . .C e f I e a Re e e, G.R. No. 178797, 4 August 2009,
595 SCRA 234.

635

o pa an and all in ernal re en e a es for a able ear 2005 and

prior ears. 33
WHEREFORE, he ins an Pe i ion for Re ie is GRANTED.
The 14 Jan ar 2008 Decision and 2 April 2008 Resol ion of he
Co r of Ta Appeals e ba c in CTA EB Case No. 287 is hereb
SET ASIDE, and he remaining assessmen s for de cienc a es for
a able ear 1998 are hereb CANCELLED solel in he ligh of
he a ailmen b CS Garmen , Inc. of he a amnes program
nder Rep blic Ac No. 9480.
SO ORDERED.

Le a d -De Ca , Be a i , Vi a a a, J . and Re e , JJ.,

conc r.

Pe i i g a ed, j dg e a d e i e a ide.

No e . A a amnes is a general pardon or he in en ional

o erlooking b he S a e of i s a hori o impose penal ies on
persons o her ise g il of iola ion of a a la i par akes of an
absol e ai er b he go ernmen of i s righ o collec ha is d e
i and o gi e a e aders ho ish o relen a chance o s ar i h a
clean sla e; The Doc men ar S amp Ta (DST) is one of he a es
co ered b he Ta Amnes Program nder RA 9480. (Phi i i e
Ba i g C ai [N : G ba B i e Ba , I c.] .
C i i e f I e a Re e e, 577 SCRA 366 [2009])
RA 9480 is speci call clear ha he e cep ions o he a
amnes program incl de a cases s bjec of nal and e ec or
j dgmen b he co r s. (Id.)
o0o

_______________

33 R.A. 9480, Sec. 6(a).

C g 2023 Ce a B S , I c. A g e e ed.