616

SUPREMECOURTREPORTSANNOTATED Lim, Sr. vs. Court of Appeals G.R.Nos.4813437.October18,1990.

*

EMILIOE.LIM,SR.andANTONIASUNLIM,petitioners, vs. COURT OF APPEALS and PEOPLE OF THE PHILIPPINES,respondents.

Taxation; Income Tax; Prescription; The 5year prescriptive period provided for under Sec. 354 of the Tax Code should be reckoned from the date the final notice and demand was served on the taxpayer.Relative to Criminal Cases Nos. 1788 and 1789 which involved petitioners' refusal to pay the deficiency income taxesdue,againbothpartiesareinaccordthatbytheirnature,the violationsaschargedcouldonlybecommittedafterserviceofnotice and demand for payment of the deficiency taxes upon the taxpayers. Petitioners maintain that the fiveyear period of limitationunderSection354shouldbereckonedfromApril7,1965, the date of the original assessment while the Government insists thatitshouldbecountedfrom
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* THIRDDIVISION.

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VOL.190,OCTOBER18,1990 Lim, Sr. vs. Court of Appeals

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July 3, 1968 when the final notice and demand was served on petitioners' daughterinlaw. We hold for the Government. Section 51 (b) of the Tax Code provides: "(b) Assessment and payment of

deficiency tax.After the return is filed, the Commissioner of InternalRevenueshallexamineitandassessthecorrectamountof the tax. The tax or deficiency in tax so discovered shall be paid upon notice and demand from the Commissioner of lnternal Revenue." (Italics supplied) Inasmuch as the final notice and demand for payment of the deficiency taxes was served on petitionersonJuly3,1968,itwasonlythenthatthecauseofaction onthepartoftheBIRaccrued.Thisissobecausepriortothereceipt oftheletterassessment,noviolationhasyetbeencommittedbythe taxpayers.Theoffensewascommittedonlyafterreceiptwascoupled with the wilful refusal to pay the taxes due within the alloted period. The two criminal informations, having been filed on June 23, 1970, are wellwithin the fiveyear prescriptive period and are nottimebarred. Same; Same; Same; Fraudulent Returns; In addition to the fact of discovery, there must be a judicial proceeding for the investigation and punishment of the tax offense before the fiveyear limiting period begins to run.On behalf of the Government, the Solicitor General counters that the crime of filing false returns can beconsidered"discovered"onlyafterthemannerofcommission,and thenatureandextentofthefraudhavebeendefinitelyascertained. It was only on October 10, 1967 when the BIR rendered its final decision holding that there was no ground for the reversal of the assessment and therefore required the petitioners to pay P1,237,190.55 in deficiency taxes that the tax infractions were discovered.Notonlythat.TheSolicitorGeneralstressesthatSection 354speaksnotonlyofdiscoveryofthefraudbutalsoinstitutionof judicial proceedings. Note the conjunctive word "and" between the phrases "the discovery thereof' and "the institution of judicial proceedings for its investigation and proceedings." In other words, in addition to the fact of discovery, there must be a judicial proceedingfortheinvestigationandpunishmentofthetaxoffense before the fiveyear limiting period begins to run. It was on September 1,1969 that the offenses subject of Criminal Cases Nos. 1790 and 1791 were indorsed to the Fiscal's Office for preliminary investigation. Inasmuch as a preliminary investigation is a proceedingforinvestigationandpunishmentofacrime,itwasonly onSeptember1,1969thattheprescriptiveperiodcommenced.xxx TheCourtisinclinedtoadopttheviewoftheSolicitorGeneral.For whilethatparticularpointmighthavebeenraisedintheChingLak case,theCourt,atthattime,didnotgiveadefinitiverulingwhich would have settled the question once and for all. As Section 354 standsinthestatutebook(andtothis
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SUPREMECOURTREPORTSANNOTATED Lim, Sr. vs. Court of Appeals

dayithasremainedunchanged)itwouldindeedseemthatthetax cases,suchasthepresentones,arepracticallyimprescriptibleforas long as the period from the discovery and institution of judicial proceedingsforitsinvestigationandpunishment, up tothefilingof theinformationincourtdoesnotexceedfive(5)years. Same; Same; Presidential Decree 69; PD 69 provides that judgment in the criminal case shall not only impose the penalty but shall order payment of the taxes subject of the criminal case. This decree, however, cannot be applied to criminal cases filed prior to the effectivity thereof i.e. January 1, 1973.The petition, however, is impressed with merit insofar as it assails the inclusion in the judgmentofthepaymentofdeficiencytaxesinCriminalCasesNos. 17881789. The trial court had absolutely no jurisdiction in sentencing the Lim couple to indemnify the Government for the taxesunpaid.ThelowercourterredinapplyingPresidentialDecree No. 69, particularly Section 316 thereof, which provides that "judgmentinthecriminalcaseshallnotonlyimposethepenaltybut shall order payment of the taxes subject of the criminal case", because that decree took effect only 011 January 1, 1973 whereas thecriminalcasessubjectofthisappealwereinstitutedonJune23, 1970.Saveintwospecificinstances,PresidentialDecreeNo.69has noretroactiveapplication.

PETITIONforcertioraritoreviewthedecisionoftheCourt ofAppeals. ThefactsarestatedintheopinionoftheCourt. Santiago, Fornier, Tinga & Associatesforpetitioners. FERNAN,C.J.: The instant petition for review on certiorari seeks the reversaloftheCourtofAppealsdecisiondatedSeptember1, 1977whichaffirmedin totothejudgmentsofthethenCourt ofFirstInstanceofManila,BranchVIinfour(4)Criminal casesinstitutedbytheBureauofInternalRevenueagainst 1 petitioners. Thefactsasfoundbythetrialcourtandaffirmedbythe AppellateCourtaresubstantiallyasfollows: Petitioner spouses Emilio E. Lim, Sr. and Antonia Sun Lim, with business address at No. 336 Nueva Street,

Manila,were
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1Rollo,p.118.

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VOL.190,OCTOBER18,1990 Lim, Sr. vs. Court of Appeals

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engagedinthedealershipofvarioushouseholdappliances. Theyfiledincometaxreturnsfortheyears1958and1959. On October 5, 1959, a raid was conducted at their business address by the National Bureau of Investigation byvirtueofasearchwarrantissuedbyJudgeWenceslaoL. Cornejo of the City Court of Manila. A similar raid was made on petitioners' premises at 111 12th Street, Quezon City. Seized from the Lim couple were business and accounting records which served as bases for an investigation undertaken by the Bureau of Internal Revenue(BIR). On October 14,1960, the Chief of the Investigation Division of the BIR informed petitioners that revenue examiners had been authorized to examine their books of account. On September 30, 1964 Senior Revenue Examiner Raphael S. Daet submitted a memorandum with the findingsthattheincometaxreturnsfiledbypetitionersfor the years 1958 and 1959 were false or fraudulent. Daet recommended that an assessment of P835,127.00 be made againstthepetitioners. Accordingly,onApril7,1965,thenActingCommissioner of the BIR, Benjamin M. Tabios informed petitioners that there was due from them the amount of P922,913.04 as deficiency income taxes for 1958 and 1959, giving them untilMay7,1965topaytheamount. On April 10, 1965, petitioner Emilio E. Lim, Sr. requested for a reinvestigation. The BIR expressed willingness to grant such request but on condition that withintendaysfromnotice,Limwouldaccomplishawaiver of defense of prescription under the Statute of Limitations and that one half of the deficiency income tax would be deposited with the BIR and the other half secured by a surety bond. If within the tenday period the BIR did not

hear from petitioners, then it would be presumed that the requestforreinvestigationhadbeenabandoned. PetitionerEmilioE.Lim,Sr.refusedtocomplywiththe above conditions and reiterated his request for another investigation. On January 31, 1967, the BIR Commissioner informed petitioners that their deficiency income tax liabilities for 1958and1959hadbeenassessedatP934,000.54including interest and compromise penalty for late payment. PetitionersweregivenuntilMarch7,1967tosubmittheir objectionswiththeadmonitionthatiftheyfailedtodoso,it wouldbeassumedthatthey
620

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SUPREMECOURTREPORTSANNOTATED Lim, Sr. vs. Court of Appeals

were agreeable to the assessment and a formal demand wouldissue. OnMarch15,1967,petitionerswrotetheBIRtoprotest the latest assessment and repeated their request for a reinvestigation, On October 10, 1967, the BIR rendered a final decision holding that there was no cause for reversal of the assessment against the Lim couple. Petitioners were requiredtopaydeficiencyincometaxesfor1958and1959 amounting to P1,237,190.55 inclusive of interest, surcharges and compromise penalty for late payment. The final notice and demand for payment was served on petitionersthroughtheirdaughterinlawonJuly3,1968. Still, no payment was forthcoming from the delinquent taxpayers. Accordingly on September 1, 1969, the matter was referred by the BIR to the Manila Fiscal's Office for investigation and prosecution. On June 23, 1970, four (4) separate criminal informations were filed against petitioners in the then Court of First Instance of Manila, BranchVIforviolationofSections45and51inrelationto 2 Section 73 of the National Internal Revenue Code. Trial ensued.OnAugust19,1975,thetrialcourtrenderedtwo(2) joint decisions finding petitioners guilty as charged. The dispositiveportionsread:InCriminalCasesNos.1789and 1788:
'WHEREFORE, in view of the foregoing considerations, the Court

findstheaccusedEmilioE.Lim,Sr.andAntoniaSunLimguiltyof aviolationofSection51penalizedunderSection73oftheNational Internal Revenue Code and each is hereby sentenced in each case to pay a fine of P2,000.00 and to pay the government pursuant to Presidential Decree No. 69 the amounts of P580,588.75 and P656,601.80 as deficiency income taxes for the years 1958 and 3 1959,respectively,andthecostsoftheproceedings."

InCriminalCasesNos.1790and1791:
"WHEREFORE, in view of the foregoing considerations, the Court findstheaccusedEmilioE.Lim,Sr.andAntoniaSunLimguiltyof a
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2CommonwealthActNo.466. 3Rollo,p.228.

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VOL.190,OCTOBER18,1990 Lim, Sr. vs. Court of Appeals

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violation of Section 45 in relation to Section 332 of the National InternalRevenueCodeasamended,penalizedunderSection73of thesameCodeandherebysentenceseachtopayafineofP4,000,00 4 ineachcaseandthecostsoftheproceedings."

PetitionersappealedtheforegoingdecisionstotheCourtof 5 Appeals. In its judgment dated September 1, 1977, the CourtofAppealsaffirmed in toto the twin decisions of the lower court. Twentythree days (23) later or on September 24,1977,petitionerEmilioE.Lim,Sr.died. On September 26, 1977, petitioners moved for a reconsiderationofthedecisiondatedSeptember1,1977.On April 4, 1978, the Court of Appeals promulgated a resolutionasfollows:
"WHEREFORE, pursuant to Article 89 of the Revised Penal Code, bythedeathofappellantEmilioE.Lim,Sr.hiscriminalliabilityis totally extinguished; but his counsel is hereby required to inform the Court as to who are the heirs of the deceased following which the caption should be modified so as to reflect the civil aspect and substitution of the heirs, as defendants. In all other respects, the 6 decisionofthisCourtpromulgatedSeptember1,1977,stands."

Hencethepresentpetitionforreviewbycertiorari. In their Brief, petitioners contend that the Appellate Court erred in holding that the offenses charged in Criminal Case Nos. 1790 and 1791 prescribed in ten (10) years,insteadoffive(5)years;thattheprescriptiveperiod in Criminal Cases Nos. 1788 and 1789 commenced to run onlyfromJuly3,1968,thedateofthefinalassessment;that Section 316 of the Tax Code as amended by Presidential DecreeNo.69wasapplicabletothecaseatbar;andthatthe civilobligationofpetitionerEmilioE.Lim,Sr.arisingfrom 7 thecrimeschargedwasnotextinguishedbyhisdeath. Preliminarily, it must be made clear that what we are dealing
________________
4Rollo,p.233. 5CAG.R.Nos.1881418817CR. 6Rollo,p.163. 7

Brief of the Petitioners, pp. 12, in relation to the Motion for

Correction,Rollo,p.346. 622

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SUPREMECOURTREPORTSANNOTATED Lim, Sr. vs, Court of Appeals

hereare criminal prosecutionsforfilingfraudulentincome tax returns and for refusing to pay deficiency taxes. The governingpenalprovisionoftheNationalInternalRevenue 8 Code is Section 73 in conjunction with Section 354. The disputecentersontheinterpretationofSection354because inanefforttoexculpatethemselves,petitionershaveraised the defense of prescription. On the fiveyear prescriptive period,bothpartiesareinagreement.Theydifferhowever in the manner of computation, specifically as to when the periodshouldcommence.Thus:
"Section73.Penaltyforfailuretofilereturnortopaytax.Anyone liable to pay the tax, to make a return or to supply information required under this Code, who refuses or neglects to pay such tax, to make such return or to supply such information at the time or timeshereinspecificedineachyear,shallbepunishedbyafineof notmorethantwothousandpesosorbyimprisonmentfornotmore thansixmonths,orboth.

"Any individual or any officer of any corporation, or general copartnershipxxx,requiredbylawtomake,render,signorverify any return or to supply any information, who makes any false or fraudulent return or statement with intent to defeat or evade the assessmentrequiredbythisCodetobemade,shallbepunishedby afineofnotexceedingfourthousandpesosorbyimprisonmentfor notexceedingoneyear,orboth." "Section354. Prescription for violations of any provisions of this Code.All violations of any provision of this Code shall prescribe afterfiveyears. "Prescription shall begin to run from the day of the commission of the violation of the law, and if the same be not known at the time, from the discovery thereof and the institution of judicial proceedings for its investigation and punishment. 'The prescription shall be interrupted when proceedings are institutedagainsttheguiltypersonsandshallbegintorunagainif theproceedingsaredismissedforreasonsnotconstitutingjeopardy. "The term of prescription shall not run when the offender is absentfromthePhilippines."(Italicssupplied)

Indubitably, petitioners had filed false and fraudulent income tax returns for the years 1958 and 1959 by nondisclosure
________________
8CommonwealthActNo.466.

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VOL.190,OCTOBER18,1990 Lim, Sr. vs. Court of Appeals

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ofsalesintheaggregateamountofP2,197,742.92,thereby deprivingtheGovernmentintheamountofP1,237,190.55, representing deficiency income taxes inclusive of interest, surcharges and compromise penalty for late payment. Considering that this occurred in the late 1950's, the defraudationwasonamassivescale. Relative to Criminal Cases Nos. 1788 and 1789 which involved petitioners' refusal to pay the deficiency income taxes due, again both parties are in accord that by their nature, the violations as charged could only be committed after service of notice and demand for payment of the deficiency taxes upon the taxpayers. Petitioners maintain

that the fiveyear period of limitation under Section 354 should be reckoned from April 7, 1965, the date of the original assessment while the Government insists that it shouldbecountedfromJuly3,1968whenthefinalnotice anddemandwasserved011petitioners'daughterinlaw. We hold for the Government. Section 51 (b) of the Tax Codeprovides;
"(b)Assessmentandpaymentofdeficiencytax.Afterthereturnis filed, the Commissioner of Internal Revenue shall examine it and assessthecorrectamountofthetax. The tax or deficiency in tax so discovered shall be paid upon notice and demand from the Commissioner of lnternal Revenue."(Italicssupplied)

Inasmuchasthefinalnoticeanddemandforpaymentofthe deficiencytaxeswasservedonpetitionersonJuly3,1968,it wasonlythenthatthecauseofactiononthepartoftheBIR accrued. This is so because prior to the receipt of the letterassessment, no violation has yet been committed by thetaxpayers.Theoffensewascommittedonlyafterreceipt was coupled with the wilful refusal to pay the taxes due within the alloted period. The two criminal informations, havingbeenfiledonJune23,1970,arewellwithinthefive yearprescriptiveperiodandarenottimebarred. With regard to Criminal Cases Nos. 1790 and 1791 which dealt with petitioners' filing of fraudulent consolidated income tax returns with intent to evade the assessmentdecreedbylaw,petitionerscontendthatthesaid crimeshavelikewisepre
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SUPREMECOURTREPORTSANNOTATED. Lim, Sr. vs. Court of Appeals

scribed. They advance the view that the fiveyear period shouldbecountedfromthedate of discoveryofthealleged fraud which, at the latest, should have been October 15, 1964, the date stated by the Appellate Court in its resolutionofApril4,1978asthedatethefraudulentnature 9 ofthereturnswasunearthed. On behalf of the Government, the Solicitor General counters that the crime of filing false returns can be considered "discovered" only after the manner of commission, and the nature and extent of the fraud have

beendefinitelyascertained.ItwasonlyonOctober10,1967 whentheBIRrendereditsfinaldecisionholdingthatthere was no ground for the reversal of the assessment and therefore required the petitioners to pay P1,237,190.55 in deficiencytaxesthatthetaxinfractionswerediscovered. Notonlythat.TheSolicitorGeneralstressesthatSection 354 speaks not only of discovery of the fraud but also institution of judicial proceedings. Note the conjunctive word"and"betweenthephrases"thediscoverythereof'and "the institution of judicial proceedings for its investigation andproceedings."Inotherwords,inadditiontothefactof discovery, there must be a judicial proceeding for the investigationandpunishmentofthetaxoffensebeforethe fiveyearlimitingperiodbeginstorun.ItwasonSeptember 1,1969thattheoffensessubjectofCriminalCasesNos.1790 and1791wereindorsedtotheFiscal'sOfficeforpreliminary investigation.Inasmuchasapreliminaryinvestigationisa proceeding for investigation and punishment of a crime, it wasonlyonSeptember1,1969thattheprescriptiveperiod commenced. But according to the Lim spouses, that argument had preciselybeenraised,consideredandfoundwithoutmeritin 10 thecaseof People vs. Ching Lak which had perfunctorily dismissedtheGovernment'spositioninthiswise:
"Anentthetheorythatinthepresentcasetheperiodofprescription shouldcommencefromthetimethecasewasreferredtotheFiscal's Office, suffice it to state that the theory is not supported by any provision of law and we need not elucidate thereon." (Italics supplied).
________________
9BriefforthePetitioners,pp.22and133. 10No.L10609,May23,1958.

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VOL.190,OCTOBER18,1990 Lim, Sr. vs. Court of Appeals

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The Court is inclined to adopt the view of the Solicitor General. For while that particular point might have been raised in the Ching Lak case, the Court, at that time, did not give a definitive ruling which would have settled the

question once and for all. As Section 354 stands in the statutebook(andtothisdayithasremainedunchanged)it wouldindeedseemthattaxcases,suchasthepresentones, arepracticallyimprescriptibleforaslongastheperiodfrom thediscovery and institution of judicial proceedings for its investigation and punishment, up to the filing of the informationincourtdoesnotexceedfive(5)years. 11 In the case of People vs. Tierra, the same argument cameupbeforetheCourtbutitsconclusionsontheissueof prescription did not bring us any closer to a categorical ruling.Itopined:
"Evidence was adduced to show, and the trial court so found, that the falsity of the returns filed by the appellant and his failure to preservehisbooksofaccountsforatleastfiveyearsfromthedateof thelastentryineachbookwerealldiscoveredonlyonDecember16, 1950.SincetheinformationswerefiledonDecember12,1955,the trial court correctly ruled that the actions were all within the five yearperiodoflimitation. "Appellantargues,however,thatsincetheinformationsmakeno allegation that the offenses were not known at the time of the commission as to bring them within the exception to the statute of limitations,thentheinformationswerenecessarilydefectiveforthat reason,andthisfataldefectcannotbecuredbytheintroductionof evidence. Prescription is a matter of defense and the information does not need to anticipate and meet it. The defendant could, at most, object to the introduction of evidence to defeat his claim of prescription;buthedidnot. Anyway, the law says that prescription begins to run from x x x 'the institution of judicial proceedings for 12 its xx x punishment.' (Italicssupplied).

UnlessamendedbytheLegislature,Section354staysinthe Tax Code as it was written during the days of the Commonwealth.Andasitis,mustbeappliedregardlessof its apparent onesidedness in favor of the Government. In criminalcases,
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11Nos.Ll717780,December28,1964,12SCRA667,671. 12SeeaboveSection354cited.

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SUPREMECOURTREPORTSANNOTATED Lim, Sr. vs. Court of Appeals

statutes of limitations are acts of grace, a surrendering by thesovereignofitsrighttoprosecute.Theyreceiveastrict constructioninfavoroftheGovernmentandlimitationsin such cases will not be presumed in the absence of clear 13 legislation. Thepetition,however,isimpressedwithmeritinsofaras it assails the inclusion in the judgment of the payment of deficiency taxes in Criminal Cases Nos. 17881789. The trialcourthadabsolutelynojurisdictioninsentencingthe Lim couple to indemnify the Government for the taxes unpaid. The lower court erred in applying Presidential Decree No. 69, particularly Section 316 thereof, which providesthat"judgmentinthecriminalcaseshallnotonly impose the penalty but shall order payment of the taxes subjectofthecriminalcase",becausethatdecreetookeffect onlyonJanuary1,1973whereasthecriminalcasessubject ofthisappealwereinstitutedonJune23,1970.Saveinthe two specific instances, Presidential Decree No. 69 has no retroactiveapplication. 14 InthecaseofPeople vs, Tierra, wereiteratedtheruling 15 inPeople vs. Arnault, thatthereisnolegalsanctionforthe imposition of payment of the civil indemnity to the Governmentinacriminalproceedingforviolationofincome taxlaws.Thus:
"x x x While Section 73 of the National Internal Revenue Code provides for the imposition of the penalty for refusal or neglect to pay income tax or to make a return thereof, by imprisonment or fine, or both, it fails to provide for the collection of said tax in criminal proceedings. As well contended by counsel for appellant, ChaptersIandIIofTitleIXoftheNationalInternalRevenueCode providesonlyforcivilremediesforthecollectionoftheincometax, and under Section 316, the civil remedy is either by distraint of goods,chattels,etc.,orbyjudicialaction.Itisacommonlyaccepted principle of law that the method prescribed by statute for the collection of taxes is generally exclusive, and unless a contrary intentbegatheredfromthestatute,itshouldbefollowedstrictly.(3 Cooley,LawonTaxation,Section1326,pp.621623)."
________________
13Peoplevs.Ross,156N.E.303,304citedinBlack'sLawDictionary,

FourthEdition,p.1077;Mertens,TheLawonFederalTaxationvol.10, p.144.
14 Supra.

1592Phil.252(1952).

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Under the cited Tierra and Arnault cases, it is clear that criminalconvictionforaviolationofanypenalprovisionin the Tax Code does not amount at the same time to a decision for the payment of the unpaid taxes inasmuch as 16 thereisnospecificprovisionintheTaxCodetothateffect. ConsideringthatunderSection316oftheTaxCodeprior to its amendment the trial could not order the payment of the unpaid taxes as part of the sentence, the question of whether or not the supervening death of petitioner Emilio E. Lim, Sr. has extinguished his tax liability need not concernus.However,withregardtothepecuniarypenalty of fine imposed on the deceased Lim, this is necessarily extinguishedbyhisdeathinaccordancewithSection89of theRevisedPenalCode. Inresume,wethereforerule: 1. Criminal Cases Nos. 17881789 and 17901791, havingbeeninstitutedbytheGovernmentonJune 23, 1970, are not timebarred pursuant to Section 354oftheNationalInternalRevenueCode; 2. ThethenCourtofFirstInstanceofManila,Branch 6isdevoidofjurisdictiontodirectthecollectionand paymentoftheunpaiddeficiencytaxesinCriminal Case Nos. 17881789 because prior to the amendment introduced by Presidential Decree No. 69, such imposition was not sanctioned under Section316; 3. The fine imposed in the four (4) aforementioned criminal cases is hereby affirmed in the case of petitionerAntoniaSunLiminaccordancewiththe provisionofSection73oftheTaxCode.Thefineis deemed extinguished in the case of the deceased petitionerEmilioE.Lim,Sr.pursuanttoSection89 oftheRevisedPenalCode. WHEREFORE, conformably with the abovestated ruling, thedecisionoftheCourtofAppealsunderreviewisdeemed MODIFIED,Nocosts.

_______________
16SeealsoPeoplevs.Patanao, No. L22356, July 21, 1967, 20 SCRA

712. 628

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SUPREMECOURTREPORTSANNOTATED Lim, Sr. vs. Court of Appeals

SOORDERED. BidinandCorts, JJ.,concur. Gutierrez, Jr., J.,Pleseseeconcurringopinion. Feliciano, J.,Onleave. GUTIERREZ,JR., J.,Concurring Opinion Iconcurintheresults. I feel that certain issues need further clarification. I, therefore, reserve my definitive vote on these issues. For instance,tosaythatnoviolationoftheIncomeTaxLawhas been committed until after receipt of the letter assessment overlooksthefactthattheassessmentisonlyevidenceofa priorviolation.Itisnottherefusaltocomplywiththelatter thatcreatestheviolation.Itisthefailuretopaytaxesinthe years that they were due. Again, to make discovery of the fraud and institution of judicial proceedings conjunctive seems to me illogical because the judicial proceedings alwayscomeafterdiscovery.Thedateofdiscoverybecomes meaningless under our decision. Perhaps, the law needs amendmenttomakeitclearer. Decision modified. Note.The Court of Appeals is now vested with exclusive appellate jurisdiction over the Court of Tax Appeals and other quasijudicial agencies, instrumentalities, boards or commissions. (Development Bank of the Philippines vs. Court of Appeals, 180 SCRA 609.) o0o
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