CA affirms decision against trader in tax evasion case

MANILA, Philippines - The Bureau of Internal Revenue (BIR), the government’s main revenue agency, has scored in its fight against tax evaders after the Supreme Court affirmed a Court of Tax Appeals’ decision against a businesswoman found to have evaded payment of P6.3 million in taxes from 2000 to 2001.

The Supreme Court’s third division has affirmed an earlier decision of the Court of Tax Appeals finding Gloria Kintanar, a distributor of Forever Living products.

In its decision, the appellate court found Kintanar guilty of two counts of violating section 255 of the National Internal Revenue Code.

As such the Court of Appeals sentenced her to two to four years imprisonment and ordered her to pay a fine of P20,000 and P6.3 million in taxes to the BIR.

In a statement yesterday, the BIR said it received the notice from the Supreme Court on Jan. 24, 2012, “denying with finality” Kintanar’s motion.

“No compelling reason exists and no substantial arguments were raised to warrant its reconsideration,” the Supreme Court said.

In its decision on criminal cases no 0-033 and 0-034 promulgated on Dec. 3, 2010, the CTA found Kintanar guilty of two counts of violation of section 255 of the NIRC “or failing to supply the BIR with correct and accurate information.”

The case against Kintanar goes as far back as 2005 after she failed to file her income tax return for 2000 and 2001.

According to the BIR, Kintanar earned substantial income as independent contractors of Forever Living Products Philippines Inc. but has not been paying taxes.

Since 2005, the BIR has filed 215 cases of tax evasion worth a total of P43.4 billion.

The case against Kintanar is among the first to have reached the Supreme Court and decided with “finality.”

The agency continues to file cases against tax evaders under its Run After the Tax Evaders (RATE) program as part of efforts to raise revenues.

This year, the BIR is tasked to collect P1.066 trillion.

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