Tax raps filed vs Makati City Hall birthday cake supplier

MANILA, Philippines - The Makati City Hall birthday cake supplier, linked to the family of Vice President Jejomar Binay, is among those facing P46.6 million in tax evasion charges filed yesterday by the Bureau of Internal Revenue (BIR) before the Department of Justice.

According to ABS-CBN News, Cups & Mugs, also food service provider of the Ospital ng Makati and Makati City Hall, was included in the list of delinquent corporations and individuals published by the BIR in major dailies recently.

The company is listed under the name of Kimtun Chong who allegedly “willfully attempted to evade tax and deliberately failed to supply correct information in his annual income tax return for years 2009, 2010 and 2011.”

Cups and Mugs Kitchenette had supplied the birthday cakes distributed by Makati City Hall to senior citizens and had a contract to manage the cafeteria at Makati City Hall and Ospital ng Makati from 2009 to 2011, the report said.

The birthday cakes were the subject of a controversy earlier this year, after it was alleged that the cakes were priced not lower than P1,000 and are linked to alleged corruption of the Binay family in Makati City, it added.

Former Makati City vice mayor Ernesto Mercado claimed that the incorporators of Cups & Mugs Kitchenette are fronts for the Binay family.

The BIR said a preliminary investigation showed that Cups & Mugs was paid by Makati City government a total of P107.64 million over the three-year period – P35.94 million in 2009, 2010 - P42.11 million in 2010 and P29.59 million in 2011.

However, Chong under declared his correct income and did not pay the correct taxes.