MANILA, Philippines – The Bureau of Internal Revenue (BIR) has filed P54.35 million worth of tax evasion cases against a Manila City contractor and property owners in Puerto Galera, Mindoro.
The first case was filed against Oscar Repuyan Badillo, sole proprietor of Royal Trust Construction, which won a P54.26 million contract with the City of Manila to build a 3-storey building in an elementary school in 2009.
BIR Commissioner Kim Henares said Badillo did not file income tax returns that year and avoided paying the right amount of taxes by securing several tax identification numbers from various BIR revenue district offices.
Badillo’s tax liability stood at P30.35 million.
The BIR also filed charges against First Flemming Properties Inc. and a certain Lerma Lasala over the sale of two parcels of land in Puerto Galera.
The tax bureau said in its complaint that Lasala misdeclared the value of the transaction.
According to the BIR’s investigation, Lasala sold two parcels of land with a total area of 1,700 square meters to First Flemming in 2008.
The BIR said Lasala allegedly declared the transaction at P100,000 and paid only P71,400 capital gains tax and P17,650 documentary stamp tax.
But the BIR said transaction was actually worth P13.8 million.
Furthermore, the BIR also found out that the properties were treated as capital assets and not ordinary assets, and that First Flemming also failed to report the sale in its audited financial statement.
Henares said First Flemming “is being charged for attempting to evade taxes, failing to file value added tax and expanded withholding tax returns and failing to supply the BIR with correct and accurate information.”
Lasala owed the government P8.92 million taxes, while First Flemming’s deficiency tax was P15.08 million.
The filing of the cases was part of the BIR’s Run After Tax Evaders or RATE program, a name-and-shame campaign to help the agency boost its collection. – Rappler.com