Garganera complains to BIR: 'Tax fraud' eyed vs. towing firm

CEBU, Philippines – Tinago barangay councilman Joel Garganera, one of the most vocal critics of the city government, yesterday requested the Bureau of Internal Revenue (BIR) to investigate the possible tax fraud committed by the registered proprietor of One-Stop Towing Services.

In his one-page complaint-affidavit that he submitted to BIR regional director Rodita Galanto, the barangay official said he was surprised to learn that Wilfredo G. Evardome had acquired millions of pesos worth of assets to operate his towing business but the latter “has no tax history with the BIR.”

Garganera, who criticized the personnel of One-Stop Towing Services on how they operate, said the records showed that Evardome did not file any income tax return for the past five years before he engaged in a business with the Cebu City government.

“Evardome must be investigated to find out if he is just being used as a business dummy of a person or a syndicate who wants to defraud government of taxes,” Garganera said.

The office and impounding area of One-Stop Towing Services that owns at least three tow vehicles and one cargo-type truck is situated along L. Bacayo Street in barangay Guadalupe.

Garganera said the barangay clearance for business issued by barangay Guadalupe to the towing company showed that One-Stop Towing Services has a P1 million capital investment and its gross revenue for 2008 is only P238,294.

But Garganera said the taxes paid by Evardome last year for his towing business may not be reflective of the real and correct taxes he should pay to government, because the company’s receipts alone showed that he has earned millions of pesos from towing operations.

He asked the BIR’s Special Investigation Division to immediately conduct the probe of the possible tax fraud committed by Evardome.

Another issue raised by Garganera is that One-Stop Towing Services was registered by Evardome as a Non-VAT (Value Added Tax) business, but in reality the tow company earns more than the Non-VAT ceiling of P1.5 million in annual gross sales or income.

“There is a clear intent on his part to defraud the government of taxes by intentionally registering it as Non-VAT when it should be a VAT business on account of its gross sales,” he added.

The Freeman contacted the office of the towing firm yesterday afternoon, but one of its staff who answered the phone said Evardome was not around and they cannot comment about the issue yet until they receive a copy of the complaint.

Garganera refused to believe that the towing firm’s capital investment is only P1 million as reflected on its business application in barangay Guadalupe because the company owns three tow trucks and one cargo truck.

Aside from the One-Stop Towing Services, the city is also hiring the services of Road Warriors Towing Services to assist the CITOM in pulling out illegally-parked vehicles, including motorcycles, in the sidewalks or roadsides.

The towing firms will collect P1,500 fees for motorcycles and P2,500 for the four-wheeled vehicles. The vehicle owners will also pay additional P100 for the traffic violation for illegal parking.

Based on the ordinance, the city will only collect 25 per cent from the towing fees collected.

City Ordinance 2172 empowered the mayor to enter into a contract with any towing company upon the recommendation of the Citom Board and upon a favorable resolution of the City Council.

The Office of the Ombudsman-Visayas had already announced that it is conducting investigation into the controversial towing operations in Cebu City.

Garganera and his friend Atty. Ramsey Quijano, the president of the Integrated Bar of the Philippines (IBP) Cebu City Chapter, have been accused of intervening in the operations of One-Stop Towing Services by preventing its personnel from pulling out an illegally parked vehicle last April 8.

The staff of One Stop Towing Services filed criminal charges against Garganera and Quijano for direct assault, grave threats, and theft, but the two also said they will file counter-charges. –/NLQ (THE FREEMAN)