BIR files P959.9-M tax evasion charges vs STL operator

MANILA, Philippines – The Bureau of Internal Revenue (BIR) on Thursday, November 24, filed a P959.9-million tax evasion complaint against a small town lottery (STL) operator in Batangas.

The complaint filed before the Department of Justice – the first tax evasion case under the Duterte administration – is against Batangas Enhanced Technology Systems, Incorporated (BETSI), former presidents Benedicto Bulatao and Rolando Montecillo, and treasurer Jessie Cantos, covering the period 2007-2015.

The investigation was prompted by confidential information received by the agency regarding BETSI and its officers. BETSI, a domestic corporation registered with the Securities and exchange Commission, is an authorized STL agent of the Philippine Charity Sweepstakes Office.

Based on its investigation, BETSI and the officials named in the complaint allegedly violated provisions of the National Internal Revenue Code which punishes willful attempt to evade tax payment, deliberate failure to supply correct and accurate information in its income tax return, wilfull failure to file value added tax returns, failure to register as a VAT taxpayer, and failure to pay documentary stamp tax for taxable years 2007 to 2015.

The BIR discovered that BETSI substantially underdeclared its correct taxable income by P3.61 million in 2007, P10 million in 2008, P14.05 million in 2009, P25.54 million in 2010, P52.03 million in 2011, P45.73 million in 2012, P28.38 million in 2013, P58.75 million in 2013, and P128.38 million in 2014 for a total amount of P367.11 million.

As a result of the underdeclaration, BETSI and its officers were held liable to pay P959.96 million, inclusive of surcharges and interests. 

The total amount represents P199.02 million unpaid income tax, P136.55 value-added tax, and P624.39 million documentary stamp tax. – Rappler.com