The Bureau of Internal Revenue (BIR) filed yesterday eight new tax evasion cases, seven of which involved the fraudulent sale and use of tax credit certificates (TCCs) and one under its Run After Tax Evaders (RATE) program.
The total amount of lost revenues from the tax cases is estimated at P67.7 million, BIR deputy commissioner for legal and enforcement Gregorio Cabantac said.
The BIR filed before the Office of the State Prosecutor charges against businessman Faustino Chingkoe and his wife Gloria, the couple at the center of the multibillion-peso tax credit scam unearthed in the early 1990s.
The BIR has again found evidence linking three other companies of the Chingkoes to the P5.3-billion tax credit scam. The companies are Jibtex Industrial Corp., All Star Spinning, Inc. and Alliance Thread Co., Inc.
The task credit scam involves the use of fraudulent TCCs. A TCC serves as a company’s claim for tax credits, which are given to firms that import raw materials for processing and then export the finished products. Holders may use TCCs in paying taxes or sell them at a discount. Fraud is committed when companies acquire the TCCs illegally, or when companies not entitled to TCCs use them.
“The charges are not just centered on the Chingkoes, who are the principal accused in these cases. Others who are continuing to do illegal business with the Chingkoes are also being investigated by the BIR for possible laundering and tax evasion activities,” Cabantac said.
Also charged with the Chingkoes were Jibtex general manager Fernando Orendez, All Star Spinning general manager Roy Alindayu and Alliance Thread general manager Virgilio Pinon, all of whom allegedly connived with the Chingkoes to illegally transfer tax credit certificates to oil refiners Pilipinas Shell Petroleum Corp. and Petron Corp.
As this developed, the BIR also charged with tax evasion officials of import and export firm R. Urra Philippines, Inc. which is now known as Euphil Import & Export Inc.
According to the filing, the BIR charged the company’s president, Raul Urra Sr., vice president Raul Urra Jr. and treasurer Ma. Sara Urra.
The BIR filed the charges under its RATE program, for the company’s failure to pay income and value-added tax for the years 2000 and 2001, amounting to P8.2 million.