06-02-2019, 02:53 PM
An illegal means of escaping taxation. It connotes fraud through the use of pretenses and forbidden devices to lessen or defeat taxes (Yutivo Sons Hardware vs CTA, G.R. No. L-13203, January 28, 1961). Hence, it subjects the taxpayer to further or additional civil or criminal liabilities.
Tax evasion is sometiimes referred to as tax dodging.
A scheme used outside of those lawful means and when availed of, it usually subjects the taxpayer to further of additional civil or criminal liabilities (CIR vs Estate of Benigno Toda, Jr., GR No. 147188, September 14, 2004).
Factors of Tax Evasion
1. The end to be achieved, i.e., payment of less than that known by the taxpayer to be legally due or paying no tax when it is shown that the tax is due.
2. An accompanying state of mind which is described as being evil, in bad faith, willful, or deliberate and not coincidental; and
3. A course of action that is unlawful (CIR vs Estate of Benigno Toda, Jr., GR No. 147188, September 14, 2004).
Proof of Tax Evasion
1. Failure to declare for taxation purposes true and actual income derived from business for two (2) consecutive years (Republic vs. Gonzales, GR No. L-17962, April 30, 1965).
2. Substantial under declaration of income in the tax returns of the taxpayer for four (4) consecutive years coupled with intentional overstatement of deductions (CIR vs. Reyes, GR No. L-11534 and L-11558, November 25, 1958).
Tax evasion is sometiimes referred to as tax dodging.
A scheme used outside of those lawful means and when availed of, it usually subjects the taxpayer to further of additional civil or criminal liabilities (CIR vs Estate of Benigno Toda, Jr., GR No. 147188, September 14, 2004).
Factors of Tax Evasion
1. The end to be achieved, i.e., payment of less than that known by the taxpayer to be legally due or paying no tax when it is shown that the tax is due.
2. An accompanying state of mind which is described as being evil, in bad faith, willful, or deliberate and not coincidental; and
3. A course of action that is unlawful (CIR vs Estate of Benigno Toda, Jr., GR No. 147188, September 14, 2004).
Proof of Tax Evasion
1. Failure to declare for taxation purposes true and actual income derived from business for two (2) consecutive years (Republic vs. Gonzales, GR No. L-17962, April 30, 1965).
2. Substantial under declaration of income in the tax returns of the taxpayer for four (4) consecutive years coupled with intentional overstatement of deductions (CIR vs. Reyes, GR No. L-11534 and L-11558, November 25, 1958).