Case Digest (G.R. No.

208310-11 & 208662)

Facts:
 Joel C. Mendez, a medical doctor and businessman, was charged with violation of
Section 255 of the National Internal Revenue Code (NIRC) for failure to file
income tax returns for the taxable years 2002 and 2003, as well as failure to
supply correct and accurate information in the ITR for the taxable year 2003.
 The Bureau of Internal Revenue (BIR) conducted an investigation and found that
Mendez had unreported income for the said years.
 The Court of Tax Appeals (CTA) Division found Mendez guilty of the charges, and
this decision was affirmed by the CTA En Banc.

Issue:
 Whether an assessment for deficiency taxes is a prerequisite for the collection of
the taxpayer's civil liability for unpaid taxes in a criminal prosecution for tax law
violations.

Ruling:
 The court affirmed Mendez's conviction for tax evasion and held that the CTA
had jurisdiction over the criminal cases.
 The court also ruled that the use of estimates in the Amended Informations was
valid and that a final assessment is not necessary for the imposition of civil
liability for unpaid taxes in a criminal action.

Ratio:
 The CTA Division held that the notices sent to Mendez were deemed received by
him since he authorized his accountant to receive documents on his behalf.
 The BIR conducted an investigation and used the net worth and expenditures
method to determine Mendez's unreported income.
 The CTA Division found Mendez guilty of willful failure to file ITR for the taxable
year 2002 and willful failure to supply correct and accurate information in the
ITR for the taxable year 2003.
 Mendez argued that the CTA did not have jurisdiction over the criminal cases
because the amounts of taxes alleged in the Amended Informations were mere
estimates.
 However, the court held that the CTA had jurisdiction over the cases since the
amounts claimed in the Amended Informations exceeded P1,000,000.
 The court also ruled that the use of estimates in the Amended Informations did
not divest the CTA of jurisdiction.
 The court further held that the issuance of subpoena duces tecum is not
mandatory before the BIR can resort to third-party information and best
obtainable evidence.
 The court found that Mendez was aware of his duty to file ITR and willfully failed
to do so.
 The court also ruled that a final assessment issued by the Commissioner of
Internal Revenue is not a condition precedent to the imposition of civil liability
for taxes in a criminal action for violation of the tax laws.