Faustino and Gloria Chingkoe have been indicted before the Sandiganbayan for their alleged part in the tax credit scam in connivance with officials of the Department of Finance (DOF).
Documents obtained by The STAR show that two Chingkoe-owned firms — Diamond Knitting Corp. and Filstar Textile Industrial Corp. — owe the government some P101.9 million and P176.1 million in unpaid taxes, respectively.
Tax fraud investigators from the Bureau of Internal Revenue (BIR) discovered that Diamond had declared "no income" for four years, from 1994 to 1997, when it was able to acquire tax credit certificates that were eventually sold to Pilipinas Shell Petroleum Corp. and Petron Corp.
Records showed Filstar also sold tax credit certificates to Shell and Petron.
Investigators said the Chingkoes, along with accountant Benick Soriano and general manager Reynaldo Andaya, had "willfully evaded" taxes by making "untruthful statements" via a "gross misdeclaration" of Diamond’s P128-million total income.
The DOJ is now conducting a preliminary investigation of the case, along with the Filstar’s alleged under-declaration of P46.3 million in "gross sales" for two years — P38.8 million in 1996 and P7.5 million in 1997.
The BIR said a review of Filstar’s financial records showed that the firm earned P55.3 million in 1996 and P120.8 million the following year — a total of P176.1 million, or 30 percent more than the income it declared.
Apart from the Chingkoes, the BIR will charge Filstar accountants Marife Reyes and Loretta Padre and general managers Rodrigo Garcia and Rodel Rodriguez with tax evasion. — Delon Porcalla