Quirico Ungab vs Vicente Cusi, Jr.

G.R. No. L-41919-24 – 186 Phil. 604 – 97 SCRA 877 – Taxation Law – NIRC Rules of Procedure – Tax Evasion – Protest – Criminal Case Against Taxpayer May Be Filed Sans A Final Assessment

In July 1974, Quirico Ungab filed his income tax return. He was subjected to a tax audit and the tax examiner was convinced that Ungab filed a fraudulent return. He was issued an assessment demanding payment of P104k in taxes. At the same time, the tax examiner recommended the filing of criminal cases of tax evasion against Ungab. Meanwhile, Ungab filed a protest with the Commissioner of Internal Revenue (CIR).

Acting on the recommendation of the tax examiner, a state prosecutor filed 6 informations against Ungab for various violations of the National Internal Revenue Code. The informations were filed with Court of First Instance of Davao presided by Judge Vicente Cusi, Jr. Ungab filed a motion to quash the informations on the ground that his pending protest with the CIR has not yet been acted upon hence the assessment is not yet final and executory and therefore the trial court has no jurisdiction yet over the criminal cases.

ISSUE: Whether or not Ungab is correct.

HELD: No. What is involved here is not the collection of taxes where the assessment of the Commissioner of Internal Revenue may be reviewed by the Court of Tax Appeals, but a criminal prosecution for violations of the National Internal Revenue Code (NIRC) which is within the cognizance of courts of first instance (regional trial courts). While there can be no civil action to enforce collection before the assessment procedures provided in the NIRC have been followed, there is no requirement for the precise computation and assessment of the tax before there can be a criminal prosecution under the Code. In fact, there is not even a requirement that an assessment first be issued before a criminal case for violation of the NIRC be filed.

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