G.R. No. L-17173. April 30, 1963. REPUBLIC OF THE PHILIPPINES, plaintiff-appellee, vs. THEODORE (TED) LEWIN, defendant-appellant.
FACTS

Defendant Theodore Lewin filed his 1953 income tax return on February 27, 1954, declaring a tax due of P11,870.00. The Bureau of Internal Revenue sent the corresponding assessment notice to his given address, the Bayview Hotel in Manila, with payment deadlines in May and August 1954. His counsel acknowledged receipt of this notice. Subsequently, based on a reinvestigation, a deficiency assessment of P6,834.00 was issued on February 20, 1958, which was also received by his counsel in March 1958. Due to non-payment, the Republic filed a collection suit on February 18, 1959. Lewin pleaded prescription but later paid the principal tax amounts in full in March and September 1959. The trial court, however, ordered him to pay the 5% surcharge and 1% monthly interest on the delinquencies.

ISSUE

Is Theodore Lewin liable for the 5% surcharge and 1% monthly interest on his delinquent income tax payments for 1953?

RULING

Yes, the defendant is liable for the surcharges and interest. The Court rejected Lewin’s defense that he was not in default due to lack of proper notification because he was in the United States from September 1953 to January 1958. The legal logic is clear: an assessment notice sent to the taxpayer’s address as stated in his own return constitutes valid service. Here, the notices for both the original and deficiency assessments were sent to the “Bayview Hotel, Manila,” the address he provided. Furthermore, his counsel’s acknowledgment of receipt for both notices binds him. His physical absence from the country did not invalidate the service or excuse payment, as the tax could have been paid through representatives or remittances. The Court affirmed that his failure to pay on the prescribed dates constituted delinquency, making the surcharge and interest mandatory additions under the tax code. The decision of the trial court was affirmed.