MANILA, Philippines - The Bureau of Internal Revenue (BIR) filed yesterday two tax cases at the Department of Justice against a construction firm and a Valenzuela City-based salon.
In a press briefing after the filing, BIR Commissioner Kim Henares said business establishments and taxpayers have been warned repeatedly that the tax agency would be going after tax evaders.
The BIR filed the first case against Lucena City-based DQT Builders Corp. for allegedly evading taxes by failing to provide the BIR with correct and accurate information in 2007.
The company has allegedly been reporting fictitious transactions worth P70.27 million as expenses or purchases in 2007, Henares said.
However, based on its investigation on the supposed suppliers, these companies had no transactions with the construction firm.
Furthermore, the BIR said the three suppliers denied that they had such transactions with the firm, even attesting to the inaccuracies of the information provided by the construction firm.
The allegedly fictitious expenses effectively reduced its taxable income as well as its VAT liability by claiming fictitious input tax.
Based on the BIR’s computation, the firm’s total tax liability is at P76.4 million, of which surcharges and interest amount to P20.77 million while deficiency value added tax and income tax amount to P55.75 million.
If found guilty, the construction company faces a fine of P30,000 to P100,000 and imprisonment of two to 10 years.
Aside from the construction firm, the BIR also filed charges against Joaquin Ignacio Moreno, owner of Valenzueal City-based Juan Carlo Salon for Men and Women.
The BIR said the salon did not issue receipts to its customers and thus face penalties of P1,000 to P50,000 and imprisonment of two to four years.
In conducting its investigation, the BIR utilized two poseur customers to seek hair treatment services from the salon to verify compliance with the regulation on issuance of official receipts.