Bureau of Internal Revenue v. Samuel B. Cagang

 Bureau of Internal Revenue v. Samuel B. Cagang 

GR No. 230104 

March 16, 2022 

 

Whether CEDCO is entitled to avail of the tax amnesty under RA 9480. 

 

With respect to the deficiency taxes pertaining to CEDCO’s income tax and VAT for taxable years 2000 and 2001, CEDCO is entitled or qualified to avail of the tax amnesty considering that it had submitted the necessary documents and complied with the requirements under RA 9480. However, the tax amnesty does not extend to CEDCO’s existing withholding tax liabilities as explicitly provided in RA 9480. It is crystal clear that withholding taxes are not covered by the amnesty program. 

 

Tax amnesty refers to the “absolute waiver by a sovereign of its right to collect taxes and power to impose penalties on persons or entities guilty of violation of a tax law. Tax amnesty aims to grant a general reprieve to tax evaders who wish to come clean by giving them an opportunity to straighten out 

their records.”