View full case

POTENCIANA M. EVANGELISTA v. PEOPLE

FACTS:

On September 17, 1987, Tanduay Distillery, Inc. applied for tax credit with the Bureau of Internal Revenue (BIR) for alleged erroneous payments of ad valorem taxes. Tanduay claimed that as a rectifier of alcohol and other spirits, it was only liable to pay specific taxes and not ad valorem taxes. The BIR sent a memorandum to the Revenue Accounting Division (RAD), headed by the petitioner, requesting verification of Tanduay's claim. The RAD prepared a certification, signed by the petitioner, stating the amounts claimed by Tanduay as tax payments. Meanwhile, another BIR officer certified that Tanduay was not liable for ad valorem tax. Based on these certifications, the BIR approved Tanduay's application for tax credit. However, a complaint was filed alleging irregularities in the grant of tax credit, leading to the conviction of the petitioner and her co-accused for violation of the Anti-Graft and Corrupt Practices Act. The petitioner filed a motion for reconsideration, arguing that her certification did not endorse approval of the tax credit application, and that she was not properly informed of the accusation against her. The Solicitor General supported the petitioner's motion and recommended her acquittal. Upon re-examination of the records, the Court granted the motion for reconsideration.

ISSUES:

  1. Did the petitioner commit the offense of violation of Section 268 (4) of the National Internal Revenue Code?

  2. Did the petitioner commit the offense of violation of Section 3 (e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act?

RULING:

  1. The petitioner was acquitted of the charge of violation of Section 268 (4) of the National Internal Revenue Code.

  2. The petitioner was found guilty of violation of Section 3 (e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act.

PRINCIPLES:

  • A certification can be considered false if it contains information that is misleading or contrary to the truth.

  • Conviction for an offense different from that alleged in the information violates the right to due process.

  • The presentation of false memoranda, certification, or official communications that lead to the approval of an application for tax credit can constitute undue injury to the government and result in the giving of unwarranted benefits.