BIR to question ruling as tax court clears Juday

Show-biz couple Judy Ann “Juday” Santos and Ryan Agoncillo arrive at the Court of Tax Appeals in Quezon City for the promulgation of her tax evasion case on Wednesday. MARIANNE BERMUDEZ

The Bureau of Internal Revenue is questioning the decision of the Court of Tax Appeals that cleared actress Judy Ann “Juday” Santos of tax deficiency.

“We will be filing a petition for certiorari questioning the decision on the criminal aspect,” the BIR said in a statement Wednesday.

“It has always been the BIR’s position that the tax code provides the presumption of fraud in cases of underdeclaration of 30 percent,” it added.

Santos’ camp, however, welcomed the tax court’s decision. Alfie Lorienzo, the actress’s manager, said in a text message:

“Justice delayed is justice denied, they say, but eventually true justice will prevail. Nagtagal nga lang ng 8 years at ’yun ang pinagdarasal sa araw-araw na misa for Juday ng mga Carmelite nuns, kaya sobrang tuwa ni Juday ngayon kaya nag-iiyak at mugto pa till now ang mga mata (It lasted, however, for eight years and that’s what we have been praying for in the daily Masses for Juday by the Carmelite nuns, so Juday was so happy she cried and her eyes are still swollen until now). Thank you Lord thank you Lord!”

According to the BIR, it had ordered Santos to settle P3.418 million in unpaid income tax for 2002, excluding a 20-percent interest on such arrears.

“Santos’ underdeclaration exceeds 100 percent and the defense never submitted any evidence to disprove such presumption,” the BIR said.

The BIR also noted that the CTA’s decision ran counter to the so-called “willful blindness” doctrine that the CTA itself had espoused and which the Supreme Court had affirmed.

This doctrine was crucial in the BIR’s winning the landmark tax evasion case against Gloria Kintanar last year.

Under the “willful blindness” ruling, taxpayers can no longer blame their accountants for not meeting their tax obligations.

Kintanar, who was convicted for not paying P15 million in taxes on her income as a distributor of Forever Living Products, has evaded arrest.

Her husband, Benjamin Kintanar, has also been convicted in a related but separate case.