MANILA, Philippines – The Bureau of Internal Revenue (BIR) has filed charges against Makati Rotary Club Foundation, Inc. and its officers for allegedly evading taxes from 2001 to 2010.
The tax bureau alleged that the socio-civic club’s foundation failed to pay an estimated P23 million in income taxes during the period for its income on property assets.
The bureau said the club has a 20,063-square meter property in Parañaque City that it had been renting out. The club allegedly escaped paying income and value-added taxes by reporting half of its P47 million lease income from this property as donations.
Since splitting the income meant the donated portion was excluded from the computation of its corporate taxes and VAT, the bureau said this was a “clear intention to evade taxes.”
Among the club foundation officials charged were prominent businessmen in the Philippines:
- Felix Amparo
- Jose Bengzon III
- Federico Borromeo, Jr.
- Larry Boyer
- Juan Carlos Jr.
- Ramon Diokno
- Tomas De Leon
- Robert Kuan
- Ricardo Librea
- Conrado Marty
- Alfredo Parungao
- J. Antonio Quila
- Wellington Soong
- Jesus Tambunting
The Rotary Club is a global organization of businessmen who engage in socio-civic activities. Of its many local chapters, Rotary Club Makati is one of the most prestiguous.
Under the Aquino administration, the tax bureau is pursuing a high-profile name and shame campaign against tax evaders under its Run Against Tax Evaders (RATE) program. It hopes to improve tax administration and increase tax collections for the country. Taxes account for over 3/4 of the government’s revenues. – Rappler.com