BIR files P415-M tax evasion cases

MANILA, Philippines – The Bureau of Internal Revenue (BIR) filed Thursday, May 16 tax evasion cases worth P414.82 million before the Department of Justice against a trading company and a resident of the posh Ayala Alabang village.

In a statement, BIR said it charged Megapack Container Corp. for evading taxes and failing to supply the bureau with correct and accurate information in its tax returns for 2009 and 2010. Also named in the complaint was its president, Salvador Lara.

Megapack is a buyer and seller of corrugated boxes in Caloocan City. Its clients include Nestle and Handyware.

The company was subjected to an audit by the BIR after the tax bureau found inconsistencies in its returns. During the audit, Megapack did not present its books as required by law.

Investigation showed Megapack’s sales amounted to least P943.28 million for 2009 and 2010, but it declared only P457.38 million. The underdeclaration was more than 30% and was prima facie evidence of fraud, BIR said.

Alabang resident 

BIR also sued Napoleon Villapando, a resident of Ayala Alabang who bought a P20-million Lamborghini 2-door coupe sports car in 2007, way more than what he earned for 8 years.

BIR said Villapando declared an income of only P225,078.60 that year, and total income of P718,575.78 from 1999 to 2007.

Norsophil Metal Resources Inc., his employer in 2003, 2004, 2006 and 2007, withheld and remitted his income taxes these years. He did not file income tax returns from 1999 to 2002, and in 2005.

BIR computed Villapando’s deficiency tax liability, including surcharge and interest, at P15.84 million.

“Based on the expenditure theory, if a person’s expenses in a given year exceeds his income and the source of funds from the excess spending is unexplained, it is considered as unreported income that should be taxed,” BIR said. – Rappler.com