MANILA, Philippines — The Bureau of Internal Revenue (BIR) on Wednesday filed tax evasion complaints against dismissed Bamban, Tarlac Mayor Alice Guo and two other individuals allegedly linked to the Baofu Land Development Inc.
The tax bureau's complaint stemmed from the dismissed mayor's transfer of her shares in Baofu, the property developer that owns the land where Hongsheng Gaming and Zun Yuan Technology Inc. are located, to Jack Uy, a co-accused in the case.
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According to tax commissioner Romero Lumagui Jr., Guo did not file or pay the capital gains tax and documentary stamp tax worth P500,000 in connection to this transfer.
“The tax is low because the value of the shares she claimed to have sold is small, amounting to only around P500,000.,” Lumagui said in Filipino, during an ambush interview with reporters.
“It's in the law, that before you transfer shares and corporate books and report to the SEC, the taxes must first be paid,” he added.
This is the second case lodged against the embattled suspended mayor before the Department of Justice. Guo is also facing a non-bailable trafficking in persons complaint before the agency.
Aside from Guo and Uy, Baofu corporate secretary Rachelle Carreon Is also included in the respondents.
Guo, Uy and Carreon will be facing the following violations of the National Internal Revenue Code:
- Section 254 - Attempt to evade or defeat tax
- Section 255- Failure to file capital tax gains and documentary stamp tax
Meanwhile, violation of Section 250 of the tax code or the failure to file/supply certain information is also filed against Carreon.
“Carreon, as the Corporate Secretary of Baofu Inc., will also face the same criminal case for tax evasion due to her deliberate failure to report the non-payment and non-filing of Capital Gains Tax and Documentary Stamp Tax returns to the BIR. She even verified under oath the General Information Sheet reflecting the transfer even if no taxes were paid and no returns were filed," Lumagui said in a separate statement.
The tax chief also said that the bureau might file another case against Guo depending on the result of the agency’s audit of her business operations.
On Monday, the Office of the Ombudsman removed Guo from office due to her alleged links to involvement in the illegal activities of a Philippine offshore gaming operation hub in her locality.
Despite her removal from office, the quo warranto petition filed by the Office of the Solicitor General will still proceed to ensure that the embattled mayor cannot run for office in future elections, according to Solicitor General Menardo Guevarra.
On the other hand, the material misrepresentation case filed by the Commission on Elections (Comelec) will continue despite the dismissed mayor’s dismissal.
“Our case shall proceed no matter what,” Comelec chairman George Garcia said in a message to reporters.
In a message to reporters, one of Guo's counsel, Stephen David, said that the mayor's camp has yet to receive any subpoena.
"When we receive it, we will file our answer," he said.