BIR vs. Court of Appeals and Spouses Manly Summary

BUREAU OF INTERNAL REVENUE, AS REPRESENTED BY THE COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. COURT OF APPEALS, SPOUSES ANTONIO VILLAN MANLY, AND RUBY ONG MANLY, RESPONDENTS.

G.R. No. 197590 | 2014-11-24

A deficiency assessment is not required in a criminal prosecution for tax evasion, but proof that a tax is due is still required
'Expenditure method' as a technique used by the BIR to determine a taxpayer's undeclared income
Tax evasion

SECOND DIVISION

D E C I S I O N

DEL CASTILLO, J.:

There is grave abuse of discretion when the determination of probable cause is exercised in an arbitrary or despotic manner, due to passion or personal hostility, so patent and gross as to amount to an evasion of a positive duty or a virtual refusal to perform a duty enjoined by law.¹

This Petition for Certiorari² under Rule 65 of the Rules of Court assails the Decision³ dated October 28, 2010 and the Resolution⁴dated May 10, 2011 of the Court of Appeals (CA) in CA-G.R. SP No. 112479.

Factual Antecedents

Respondent Antonio Villan Manly (Antonio) is a...