30 bus firms cheat gov’t of P406-M using tax credits

Thirty bus companies have defrauded the government of P406.2 million by claiming tax credits based on fraudulent documents.

According to a report submitted by the Department of Finance (DOF) last week to the House committee on good government, the 30 transport companies were among 64 firms responsible for the P5.3-billion tax scam that Rep. Oscar Moreno (Lakas, Misamis Oriental) exposed two months ago.

The committee, chaired by Rep. Ruy Elias Lopez of Davao City, opened an inquiry into the scam and Moreno’s accusation that Ombudsman Aniano Desierto has been deliberately trying to whitewash the fraud. Desierto has denied the accusation.

The DOF report surprised committee members since they thought all along that the fraud was perpetrated only by textile firms, the biggest of which were 12 companies belonging to the Chingkoe group which claimed, and were granted, a total of P2.541 billion in tax credits.

Big profitable bus firms operating between Metro Manila and other parts of Luzon are among those listed in the report.

They are Baliwag Transit, with 28.3 million in "fraudulently obtained" tax credits; BLTB Co., P18.9 million; Dagupan Bus Co., P9.6 million; JAM Transit, P43 million; JAM Liner, P11.8 million; Philtranco Service Ent. Inc., P10.6 million; Saulog Transit, P6.4 million; Superlines, P10.2 million; and Viva Transit (P7.5 million).

The other bus companies on the reports are AMA Transport, P4.4 million; Columbus Bus Corp., P15.1 million; Davao Reyes Transport, P33 million; De Guia Enterprises, P9.4 million; E & J Transport, P8.1 million; Executive Carriers, P1 million; Florida Liner, P14.1 million; Juaymah Maureen Transport, P9.2 million; Lamborghini Transit, P18.2 million; Land Car Inc., P25.6 million; Liberty Transport (Taxicab) Inc., P12.1 million; Maglalang Lines, P14.7 million; Philippine Hawk Transport, P1.8 million;

R. Transport Corp., P12.8 million; R.A. Rodriguez Bus Line, P17.8 million; Reolsyl Liner, P9.4 million; St. Anthony Liner, P10.2 million; St. Rose Transit, P1.8 million; and Triftman Liner, P4.1 million.

Reacting to the report, Moreno said apparently, the government is not interested in recovering its lost revenues.

"Its recovery efforts have not been successful. I wonder who is milking those behind this scam," he said.

In addition to the Chingkoe group, the textile firms with the biggest amount of fraudulently claimed tax credits are Victory Textile, P251 million; Integrated Multi-Cotton Mills, P260.4 million; Filipino Way Industries, P202.4 million; Copeland Industrial Corp., P159.5 million; Mannequin Intl. Corp., P131 million; Evergreen Weaving Mills, P110.2 million; Precision Garments Intl., P104.3 million; and Circular Knitting Inds. Corp., P100.9 million.