The issue in this case is whether the accused, in his capacity as President of Pic N’
Pac Mart Inc., should be held liable for the civil liability arising from the assessment of
Pic N’ Pac Mart Inc.
Here, the CTA En Banc ruled in the negative. According to the CTA, when a corporation is charged for violation of the provisions of the Tax Code, and, subsequently, found liable thereon, the penalty of imprisonment is lodged upon its responsible officers by virtue of section 253(d) of the Tax Code. However, such is not the case in the imposition of payment of deficiency tax in the form of a civil action instituted in the criminal action. The liability of the corporation is itself the very obligation covered by the assessment addressed to the very corporate taxpayer and not to the accused. Moreover, it must be stressed that the actual taxpayer in this case is Pic N’ Pac Mart Inc., which is a corporate entity separate from the incorporators. The one required by the Tax Code to pay the tax is the corporation, and it merely acts through its officers. The assessment is against the corporate entity in connection with its tax liability to the government, and not the accused. Hence, the accused is exonerated. (People of the Philippines vs. Wong Yan Tak, CTA EB Crim. Case No. 024, December 18, 2013)
Here, the CTA En Banc ruled in the negative. According to the CTA, when a corporation is charged for violation of the provisions of the Tax Code, and, subsequently, found liable thereon, the penalty of imprisonment is lodged upon its responsible officers by virtue of section 253(d) of the Tax Code. However, such is not the case in the imposition of payment of deficiency tax in the form of a civil action instituted in the criminal action. The liability of the corporation is itself the very obligation covered by the assessment addressed to the very corporate taxpayer and not to the accused. Moreover, it must be stressed that the actual taxpayer in this case is Pic N’ Pac Mart Inc., which is a corporate entity separate from the incorporators. The one required by the Tax Code to pay the tax is the corporation, and it merely acts through its officers. The assessment is against the corporate entity in connection with its tax liability to the government, and not the accused. Hence, the accused is exonerated. (People of the Philippines vs. Wong Yan Tak, CTA EB Crim. Case No. 024, December 18, 2013)
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