January 20, 1995
Ponente: Vitug, J.
FACTS
ROH Auto Products applied for the tax amnesty granted by E.O. 41 issued by then president Cory Aquino following the martial law period. Prior to the application, the CIR already assessed ROH its tax liabilities.
The CIR then denied the amnesty application of ROH, claiming that the same was not covered by the subject E.O. ROH then elevated the case to the CTA, which ruled in its favor. The same was affirmed by the CA.
RULING
The SC ruled in favor of ROH Auto.
By its very nature, a tax amnesty, being a general pardon or intentional overlooking by the State of its authority to impose penalties on persons otherwise guilty of evasion or violation of a revenue or tax law, partakes of an absolute forgiveness or waiver by the Government of its right to collect what otherwise would be due it, and in this sense, prejudicial thereto, particularly to give tax evaders, who wish to relent and are willing to reform a chance to do so and thereby become a part of the new society with a clean slate.
