People v. Kintanar Case Digest

DOCTRINES IN TAXATION: Escape from Taxation (Willful Blindness Doctrine)
People of the Philippines vs. Gloria V. Kintanar

C.T.A. EB CRIM. NO. 006
(C.T.A. CRIM. CASE NOS. 0-033 & 0-034)
December 3, 2010
On August 31, 2004 the husband of Gloria

Kintanar filed a protest to the Letter of Demand and
Assessment notices sent by the BIR. Photocopies of the
NATURE OF THE CASE: A Petition for Review

of the decision rendered by the Former Second
Division of the CTA which found Gloria Kintanar guilty
of failure to file her Income Tax returns for years 2000
and 2001.
spouses joint income tax returns for the years 2000-
FACTS: Spouses Benjamin Kintanar and Gloria
days. Again, the spouses failed to comply with the said
V.
Kintanar
were
distributors
or
2002 were attached to the protest.

In response thereto,
the BIR required the
spouses to submit additional documents within 60
independent
request;
contractors of Forever Living Products Phils. Inc.
demand
(FLPPI). It all began when the Investigation Division of
demandable.
consequently,
letter
the
became
assessment
final,
and
executory
the
and
the BIR received confidential information of an alleged

tax evasion scheme of the Spouses Kintanar. As a
The prosecution proved that Gloria Kintanar
result thereof, BIR issued a Letter of Authority to
failed to file her ITRs for the years 1999-2001 and
examine the books of accounts and other accounting
found her liable for deficiency income taxes arising
records for taxable years 1999 to 2002. The LOA was
from income earned from FLPPI.
received by Mr. Kintanar on April 3, 2003. Gloria

Kintanar failed to submit the required documents.
Gloria Kintanar testified that she filed her ITRs

for taxable years 2000-2001. She denied having
Thereafter, several notices and a subpoena were
willfully, unlawfully and feloniously failed to file her ITR
sent to her, by the BIR but the she remained
on said years as she has no personal knowledge of the
uncompliant.
actual filing of the said returns because it was her

husband who filed the ITRs. Her husband on the other
hand testified that he filed the ITRs for the years
Reported by: Clavel A. Tuason
Page 1

1997-2004
through
their
hired
accountant
who
prepared and filed their returns. Because he relied
Section
four
different
1. To pay any tax;
therefore, he has no knowledge to the amount stated
2. To make a return;
thereon and to the address which their accountant
3. To keep any record; and
filed their returns to.

Former
contemplates
situations punishable by law, for failure to:
upon his accountant, he only browsed the returns;
The
255
4. To supply correct and accurate information.

Second
Division
found
Gloria
Kintanar guilty beyond reasonable doubt of Violation of

Section 255 of the NIRC of 1997. Hence, Gloria
Kintanar filed this instant petition before the CTA En
Petitioner Gloria Kintanar is charged with failure

to make or file a return. The elements of which are the
following:
Banc.
a. the accused is a person required to make or

ISSUES: Did Petitioner Gloria Kintanar violate
Sec. 255 of the NIRC for failure to make or file her

returns? Was her failure to make or file a return willful?
ANSWER/RATIONALE/HELD:
Yes,
Gloria
Kintanar is guilty beyond reasonable doubt for failure

to make or file a return under Section 255 of the NIRC .
Yes, she the Court found her to have willfully
and deliberately failed to file her returns for the
taxable years 2000-2001.
file a return;
b. the accused failed to make or file a return at
the time
required by law; and
c. That failure to make or file a return was

willful.
All of the aforementioned elements are present
in this case.
As to the 1st element, Gloria Kintanar is duty
bound to make or file a return under Section 51 of the
NIRC. Considering that the she earned a substantial
income as distributor of FLPPI; she is therefore
Page 2

required to make or file her annual income tax return
and lastly, the signatory of the certificate was not
pursuant to Sec. 51 of the NIRC.
presented nor was there an attempt to present him to
As to 2nd element, she failed to make or file her
attest the veracity of the certificates.

As regards the 3rd element of "willfulness", it
ITRs for the taxable years 2000-2001. Gloria Kintanar

had no record that she filed the required ITRs within
was sufficiently
proven
the reglementary period to any of the Rev. District
that petitioner
deliberately failed to make or file a
Offices of the BIR. The only record the BIR has was
return.
when she was registered as a one-time transaction tax

payer for capital gains and documentary stamp in
Cavite. The petitioner presented 2 ITRs allegedly filed
in the RDO of Novaliches. However, the court did not
give credence to the authenticity of the document as it
contained material flaws. The ITRs were in itself
incomplete, filed in an RDO having no jurisdiction over
the place of residence of Mrs. Kintanar and even her
husband admitted that he did not even read the
contents of the ITR and does not know where these
ITRs were supposedly filed by their accountant. The 2
Willful
in the
beyond
tax
reasonable
crimes
statutes
doubt
means
voluntary, intentional violation of a known legal duty,

and bad faith or bad purpose
need not be shown
[Mertens' Law of Federal Income Taxation,
Chapter
47.05, page 28, Volume 13, see U.S. v. Green, 757

F2d 116,85-1
USTC 9178 (CA7 1985), in which the
Court, Citing U.S. v. Moore, 627 F2d 830 (CA7 1980)

and U.S. v. Verkuilen, 690 F2d 6-18, 82-2 USTC 9618
(CA7
1982),
upheld
the
conviction
of
tax
protester for willful failure to file returns.
certifications submitted by Kintanar were likewise
An act or omission is "willfully" done if done
tainted with various defects to wit; a) the certificates
voluntarily and intentionally and with specific intent
are undated; the certificates were issued by the RDO
to do something the law forbids, or with specific
in Novaliches which has the jurisdiction over the
intent to fail to do something the law requires to be
address reflected on the accuseds ITR. However, the
done; that is, with bad purpose to either disobey or
ITRs were stamped received by the RDO in Cubao;

Page 3

disregard the law. A willful act may be described as
founded by the Former Second Division, is tantamount
one done intentionally, knowingly and purposely,
to "deliberate ignorance or "conscious avoidance".
without justifiable excuse (Black's Law Dictionary,

51ed. p.1434).
Under
Likewise, Gloria Kintanar was duly informed that

no ITRs were filed, nor recorded under her name.
the law, Gloria and
her
husband
are
There were several notices sent to her by the BIR to
obliged to file their ITRs for taxable years 2000 and
comply with her tax obligations, but she opted not to
2001. Thus, Glorias sole reliance on her husband to
comply. Evidently,
file their ITRs is not a valid reason to justify her non-
BIRs notices clearly shows her intent not to file her
filing. Being an experienced businesswoman and
ITRs.
having been an independent distributor of FLPPI since

1996,
she
matters
ought
to know
and understand all the
concerning her business. This
includes
knowledge and awareness of her tax obligation in

connection
with
her business.
She should
know
such
non-compliance with the
Finding no reversible error, the Court En Banc

affirms
the
assailed decision and Resolution of the
Former Second Division of this Court.

RULING: WHEREFORE, premises considered,
how much are her tax dues, the details stated on
the present Petition for Review is hereby DENIED.
The
the ITRs,
assailed
and
where the same are filed, and other
Decision
dated
August
26,
2009
important facts related to the filing of her ITRs; after
Resolution dated November 26, 2009 of the Former
all, these matters concern her finances. There were
Second Division are hereby AFFIRMED.
no affirmative acts on the part of Gloria Kintanar to

make sure that her obligation to file her ITRs had been
fully complied with. Such neglect or omission, as aptly
Page 4
SO ORDERED.

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What was Gloria Kintanar charged with?

What was Gloria Kintanar charged with?

What were the elements required to prove failure to file a return?

What were the elements required to prove failure to file a return?

DOCTRINES IN TAXATION: Escape from Taxation (Willful Blindness Doctrine)

People of the Philippines vs. Gloria V. Kintanar

On August 31, 2004 the husband of Gloria

NATURE OF THE CASE: A Petition for Review

spouses joint income tax returns for the years 2000-

FACTS: Spouses Benjamin Kintanar and Gloria

days. Again, the spouses failed to comply with the said

2002 were attached to the protest.

the BIR required the

spouses to submit additional documents within 60

contractors of Forever Living Products Phils. Inc.

(FLPPI). It all began when the Investigation Division of

the BIR received confidential information of an alleged

The prosecution proved that Gloria Kintanar

result thereof, BIR issued a Letter of Authority to

failed to file her ITRs for the years 1999-2001 and

examine the books of accounts and other accounting

found her liable for deficiency income taxes arising

records for taxable years 1999 to 2002. The LOA was

from income earned from FLPPI.

received by Mr. Kintanar on April 3, 2003. Gloria

Gloria Kintanar testified that she filed her ITRs

Thereafter, several notices and a subpoena were

willfully, unlawfully and feloniously failed to file her ITR

sent to her, by the BIR but the she remained

on said years as she has no personal knowledge of the

actual filing of the said returns because it was her

Reported by: Clavel A. Tuason

DOCTRINES IN TAXATION: Escape from Taxation (Willful Blindness Doctrine)

prepared and filed their returns. Because he relied

1. To pay any tax;

therefore, he has no knowledge to the amount stated

thereon and to the address which their accountant

3. To keep any record; and

filed their returns to.

situations punishable by law, for failure to:

upon his accountant, he only browsed the returns;

4. To supply correct and accurate information.

Kintanar guilty beyond reasonable doubt of Violation of

Petitioner Gloria Kintanar is charged with failure

a. the accused is a person required to make or

Sec. 255 of the NIRC for failure to make or file her

Kintanar is guilty beyond reasonable doubt for failure

required by law; and

c. That failure to make or file a return was

Reported by: Clavel A. Tuason

DOCTRINES IN TAXATION: Escape from Taxation (Willful Blindness Doctrine)

and lastly, the signatory of the certificate was not

pursuant to Sec. 51 of the NIRC.

presented nor was there an attempt to present him to

As to 2nd element, she failed to make or file her

attest the veracity of the certificates.

ITRs for the taxable years 2000-2001. Gloria Kintanar

the reglementary period to any of the Rev. District

deliberately failed to make or file a