COMMISIONER OF INTERNAL REVENUE v. COURT OF TAX APPEALS (FIRST DIVISION) and PILIPINAS SHELL PETROLEUM CORPORATION G.R. No. 210501:G.R. No. 211294:G.R. No. 212490, March 15, 2021
appellee, vs. GREGORIO BALAGTAS, defendant and appellant.
Appeal from a decision of the Court of First Instance of
Manila finding appellant guilty of violation of Section 51 of the 1363
National Internal Revenue Code. The information filed by
the government on August 17, 1954, alleged that the said appellant failed to pay his income taxes for the years 1946, 1947, 1948 and 1949, in the total amount of P10,431.22. Upon his plea of guilty, he was sentenced to pay a fine of P300, with subsidiary imprisonment in case of insolvency, to indemnify the Republic the sum of P10,431.22, also with subsidiary imprisonment in case of insolvency. Despite appellant's plea of guilty, he appealed on the ground that the lower court erred (1) in not holding that the violation alleged in the information has already prescribed, and (2) in imposing subsidiary imprisonment relative to his civil liability. Held: Section 51, paragraphs (b) and (c) of the Internal Revenue Code provide that the tax imposed by that title shall be paid on or before the 15th day of May following the close of the calendar year, and in case of installment payments, the second installment shall be paid on or before the 15th day of August of the following year. On the other hand, Section 354 of the same Code provides that violations of any provision thereof shall prescribe after five years. With respect, therefore, to appellant's failure to pay his income taxes for 1946, 1947 and 1948 on or before May 15th or August 15th, as the case may be, of the year 1947, 1948 and 1949, respectively, the same could not have been prosecuted by reason of prescription, as the information was filed on August 17, 1954, or after more than five years have elapsed counted from August 16, 1949. With respect to his tax for 1949 which should have been paid on or before May 15th or August 15th, as the case may be, of 1950, the violation has not yet prescribed, it appearing that only 4 years and a few days have elapsed when the information was filed. Relative to the imposition of subsidiary imprisonment in case of insolvency, Section www.central.com.ph/sfsreader/session/0000017881838ca7f4e9c9e7003600fb002c009e/t/?o=False 1/2 3/30/2021 PHILIPPINE REPORTS ANNOTATED VOLUME 105
353 is clear that the subsidiary penalty provided therein
refers only to non-payment of the fine and not of the taxes due. For want of express provision of law, subsidiary imprisonment cannot be imposed in this case.
COMMISIONER OF INTERNAL REVENUE v. COURT OF TAX APPEALS (FIRST DIVISION) and PILIPINAS SHELL PETROLEUM CORPORATION G.R. No. 210501:G.R. No. 211294:G.R. No. 212490, March 15, 2021