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

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

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

Reported by: Clavel A. Tuason

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

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;

Reported by: Clavel A. Tuason

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

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

Reported by: Clavel A. Tuason

Page 4

SO ORDERED.