NLEX big man Asi Taulava acquitted in P9.55-M tax deficiency case

The Court of Tax Appeals (CTA) has acquitted NLEX Road Warriors big man Pauliasi Mateaki "Asi" Taulava of tax deficiency charges due to the prosecution's failure to prove his guilt beyond reasonable doubt.

In a 41-page decision promulgated on November 3, the tax court's First Division found fault in the absence of a Formal Letter of Demand (FLD) from the Bureau of Internal Revenue to Taulava, saying it shows he has no liability to pay for alleged dues to the government of as much as P9.55 million.

"The absence of competent proof that the FLD was duly transmitted to the taxpayer and that he was informed of the subject tax assessment, gives rise to the conclusion that the accused is under no obligation to pay for the subject taxes," the decision read.

"In light of the foregoing considerations, accused Pauliasi Mateaki Taulava is hereby acquitted for failure of the prosecution to prove his guilt beyond reasonable doubt," it added.

The 44-year-old Philippine Basketball Association (PBA) veteran is accused of refusing to pay his tax deficiency covering taxable year 2004 in the amount of P9.55 million, which resulted in the deprivation of revenues for the government and the BIR.

Taulava has been enjoying his provisional liberty after posting a bail bond in July 2013. He later pleaded not guilty of violation of the National Internal Revenue Code of 1997.

Prosecution witness Revenue Officer III Noel Bihasa said an FLD and First Notice Before Issuance of Warrant of Distraint and Levy were issued in 2009 and addressed to Taulava's home in Acropolis, Quezon City.

A Final Notice Before Seizure and a Preliminary Collection Notice were also issued by the BIR and addressed to Taulava's registered address in Ortigas, Pasig City.

The prosecution had asserted that the tax deficiency became final and demandable due to Taulava's failure to protest the Final Assessment Notice (FAN) of the BIR, forcing Bihasa to inform the PBA and Taulava's former team, the Coca Cola Tigers, of his tax liabilities from 2009 to 2010.

Taulava's wife, Anna May, offered a compromise in December 2010, requesting to pay 40 percent of the total basic deficiency income tax and value added tax amounting to P1.68 million. No formal payment, however, was made.

In its decision, the CTA said the prosecution failed to establish that the FLD and other assessment notices were successfully served to Taulava.

The 6'9" center also denied he received such notices from the BIR, saying he only learned of his tax deficiency case after his former team manager at the Meralco Bolts showed a request letter.

"Thus, since the prosecution failed to present the registry receipt issued by the Bureau of Posts or the Registry return card in connection with the mailing of the subject Formal Letter of Demand and Assessment Notices, or a Bureau of Posts Certification to the effect that the same Formal Letter of Demand and Assessment Notices were mailed, there can be no other conclusion than that the said documents were not mailed and hence, has not been received by the accused," the CTA said.

The CTA cited a Supreme Court ruling which said that non-delivery of an FAN "never attains finality when the taxpayer never receives it."

"The case underscored the significance of due process in the collection of taxes, ensuring that taxpayers will be accorded due process by the BIR, before they can be held liable for deficiency tax assessments," the CTA said.

The tax court ordered the cancellation of Taulava's P24,000 bail bond.

Associate Justice Erlinda Uy penned the decision, with the concurrence of Presiding Justice Roman Del Rosario and Associate Justice Cielito Mindaro-Grulla. — BM, GMA News