(Photo from BIR Facebook page)
The court’s third division said the prosecutors of the BIR failed to establish beyond reasonable doubt that the accused willfully or deliberately neglected to pay the tax incurred in 2009.
In a 43-page decision, the court stressed that tax evasion connotes willful attempt not to pay the tax, a condition prescribed in the Tax Code.
Cleared of the criminal charges were Arturo Zapata and Jacob Valeriano, Jr. president and treasurer, respectively, of Cross Country Oil and Petroleum, of Binondo, Manila.
The court also noted that the final assessment notice (FAN) and the final decision on disputed assessment (FDDA) sent to the taxpayers did not mention the exact amount of the tax liabilities, but only computations that could still be adjusted.