THE Court of Tax Appeals on Wednesday dismissed the P2.9-billion income tax case filed against former President and Manila Mayor Joseph Estrada and his wife Dr. Loi for violating the right to due process of the accused.
The CTA en banc affirmed the November 2015 ruling of the Second Division to clear the Estradas from violation of the tax code.
According to the CTA, the tax assessment made by the Bureau of Internal Revenue was void and unlawful, and that the bureau violated the rights to due process of the Estrada couple.
Moreover, the court said the BIR anchored its tax assessment and case filed against the Estradas on a Sandiganbayan decision convicting the ex-President of plunder.
The bureau also failed to submit to the court a copy of the Sandiganbayan decision in the plunder case.
In addition, the CTA said BIR was not able to conduct a separate tax audit, therefore there was no ground to accuse the Estradas of failure to declare their earnings, the basis of their income taxes.
The tax case stemmed from the accusations of BIR that the Estradas did not pay taxes on a combo account in the Equitable PCI Bank in the name of one Jose Velarde.
Businessman Jaime Dichavez claimed the Velarde account was his, but public prosecutors insisted the account belonged to Estrada and filed an impeachment complaint and a plunder case against him.