BIR sues Malampaya contractor for tax evasion

MANILA, Philippines – The Bureau of Internal Revenue (BIR) filed a tax evasion complaint with the Department of Justice Thursday, November 28 against the owner of a company tapped by the Palawan provincial government for projects financed by Malampaya funds.

In a statement, BIR said it charged Bella Tiotangco with “willful attempt to evade or defeat tax and willful failure to supply correct and accurate information” in her income tax return (ITR) and her 2nd, 3rd, and 4th quarterly value-added tax (VAT) returns for the 2008 tax year.

Tiotangco owns BCT Trading and Construction, which was contracted in 2008 by the Palawan provincial government to build a number of projects paid for using Malampaya funds.

According to BIR, Tiotangco earned P401.48 million that year, but declared only P167.77 million in her ITR. “She substantially underdeclared her income by P233.71 million or by 139%,” BIR’s statement read.

BIR added that Tiotangco “also underdeclared her VAT declaration for the 2nd, 3rd and 4th quarters of 2008 by P71.55 million (224%), P123.66 million (318%) and P123.11million (246%), respectively.”

Tiotangco’s total deficiency tax liability for 2008 was computed at P277.21 million, including surcharges and interest.

BIR noted this was the 119th case the agency has filed under the Run After Tax Evaders program. – Rappler.com