Know the latest developments in tax and business law in the Philippines as we dissect current issues affecting the business community, including policy development.
Writers are taken from a pool of business and tax consultants of our firm. These columns regularly appear in the BusinessWorld newspaper.
In an en banc decision on July 30 (CTA En Banc Case No. 1191), the Court of Tax Appeals (CTA) reiterated the legal principle that allegations of falsity or fraud in the filing of tax returns must be proven to exist by clear and convincing evidence and cannot be justified by mere speculation. The fraud or falsity contemplated by law is actual and not constructive in nature. Therefore, it must be intentional i.e. a willful and deliberate act of deception with the sole objective of avoiding tax.