Businesses sued for billion-peso tax evasion
THE BUREAU of Internal Revenue (BIR) yesterday sued the country’s exclusive distributor of Kopiko products, and several other businesses, for allegedly evading billions of pesos worth of taxes.
• P3.17 billion in income taxes;
• P1.3 billion in value added taxes (VAT);
• P2.73 million in withholding tax on compensation;
• P2.24 million in expanded withholding tax; and
• P870,000 in documentary stamp taxes.
The bureau’s investigation showed TMC’s list of purchases baring a P4.94-billion payment to Etheria Trading, its big-ticket supplier.
TMC, BIR said, managed to evade the payment of taxes by underdeclaring its income and overstating its expenses.
“An evaluation and comparison of TMC’s declared total net income before tax per its 2010 ITR (income tax return) of P211.44 million versus its actual amount of income subject tax for 2010 of P5.296 billion disclosed a substantial underdeclaration of 2,404.85%,” BIR said.
Mailene Sigue-Bisnar, an independent accountant who audited TMC’s books, and corporate officers Rene D. Dela Calzada (president), Michael U. Lu (treasurer) and Ramona Marie C. Tan (general manager) were also included in the rap sheet.
The proprietor of Etheria Trading, TMC’s big-ticket supplier, was likewise sued for alleged tax evasion.
Carlos A. Ching was sued for a tax liability totaling P5.28 billion in 2009 and 2010, consisting of P4.75 billion in income taxes and P530-million value added tax (VAT) inclusive of surcharge and interest.
Based on information obtained from TMC, BIR said Mr. Ching received income payments from the latter amounting to P1.8 billion in 2009 and P4.94 billion in 2010.
Mr. Ching, BIR said, underdeclared his taxable sales by P1.8 billion in 2009 and by P4.94 billion in 2010 for income taxes.
Sales covered by VAT were likewise underdeclared by P1.8 billion in 2009 and P1.45 billion in 2010, BIR added.
Two other companies, which had likewise failed to declare payments made by TMC, were sued for tax evasion.
Global Hills Philippines, BIR said, failed to declare P144.05 million of payments by TMC in 2010. Further BIR investigation showed that Global Hills underdeclared its taxable income by 128.62 million in 2010.
“As a consequence of its acts and omissions, Global was sued for a total deficiency income tax liability for taxable year amounting to P82.96 million, inclusive of surcharges and interests,” the BIR said.
Cadense Unlimited, Inc., BIR said, also failed to declare P346.45 million in payments received from TMC. BIR’s probe likewise showed it underdeclared its income by P309.33 million in 2010.
“Consequently, Cadense was sued for a total deficiency income tax liability for taxable year 2010 amounting to P199.52 million, inclusive of surcharges and interests,” BIR said.
OTHERS
BIR also sued an importer and two other companies for “willful failure to pay tax”.
Importer Ricardo L. Visbe, proprietor of Bay Specialist Trading, was sued for tax liabilities in 2004 amounting to P94.12 million: P71.69 million in income taxes and P22.43 million in VAT.
Sea Traders Logistics and Warehousing Center Corp., meanwhile, was assessed with a tax liability amounting to P70.08 million: P51.91 million in income taxes and P18.17 million in VAT.
Paladin Protective and Security Services, Inc., on the other hand, was computed with a tax deficiency amounting to P48.26 million: P26.75 million in income taxes and P21.51 million in VAT.
BIR said the three businesses were sued for allegedly failing to pay the appropriate taxes despite repeated demands from the bureau.
“The respondent’s obstinate failure and continued refusal to pay the long-overdue deficiency tax assessments — despite repeated demands — constitute failure to pay the taxes due to the government,” the BIR said.
The cases are the bureau’s 265th to 271st under its Run After Tax Evaders (RATE) Program. — Mikhail Franz E. Flores
