BIR files 4 new tax evasion cases

MANILA, Philippines - Several people with businesses ranging from dog registration and advertising to retail and construction face tax evasion charges in separate cases that the Bureau of Internal Revenue (BIR) filed yesterday. Accused of attempting to evade taxes from 2006 to 2011 are the Philippine Canine Club Inc. and its past officers Augusto Santos III, Ronnie Natividad, Bernardito Jalandoni Repaldor, Danny Ramillano, Johnny Filart and Emmanuel Santos.

Tax evasion charges were also filed against advertising firm PHD Media Network 2006 Inc. and its officers for tax liabilities amounting to P532 million from 2009 to 2011. Among the firm officers sued were Herminia de Leon, president; and Rowena Nardo, CFO.

Two separate criminal complaints were also filed against Edelberto Endozo, sole proprietor of Emendozo Trading, for failing to pay P107 million in taxes; and construction firm MASTER C RE-DE, INC. for a tax liability of P9.7 million.

The case against Philippine Canine arose from a complaint of an informant who accused it of evading the payment of taxes and the required VAT (value-added tax) since 2004.

A BIR investigation showed that Philippine Canine declared gross sales of P34.24 million, P31.73 million, P32.92 million, P42.54 million, P37.69 million, and P42.66 million during the six-year period.

Based on BIR records, Philippine Canine failed to file VAT returns and pay VAT liabilities for taxable years 2006 to 2011. 

“Since Philippine Canine is engaged in the sale of services in the course of a business pursuit, it is liable to pay VAT,” the BIR said.

Philippine Canine, along with its responsible corporate officers, was assessed an aggregate VAT liability of P68.08 million, inclusive of increments.

BIR investigation showed that PMNI deliberately underdeclared its taxable income by P223.73 million or 315 percent in 2009, 260.15 percent in 2010 and 123 percent in 2011.

Based on records, PMNI received payments amounting to P294.82 million from its withholding agents/payors.

Section 248 (B) of the Tax Code states that an under-declaration of taxable income by more than 30 percent is considered substantial and constitutes a prima facie case of fraud tantamount to tax evasion.   

The BIR has so far filed 256 cases under the Run After Tax Evaders program.