Sabroso Lechon faces tax evasion raps

Rappler.com
Sabroso Lechon faces tax evasion raps
The bureau also slaps tax evasion charges versus Joseph Calata, who was earlier embroiled in alleged stock market manipulation

 

MANILA, Philippines – A day before the April 15 income tax return (ITR) deadline, the Bureau of Internal Revenue (BIR) announced that it filed a criminal complaint against Sabroso Lechon.

The lechon (roasted pig) chain with business address at No. 95 E. Araullo Street, Addition Hills, San Juan City is one of the favorites in the metro. It now faces a tax evasion complaint for willful attempt to evade or defeat taxes, BIR Commissioner Kim Henares announced in a press conference, Tuesday, April 14.

Sabroso Lechon was also cited for deliberate failure to supply correct and accurate information in its ITR for taxable year 2010 and willful failure to file ITR for 2011, 2012, and 2013.

Sabroso Lechon president Charlie Dy Gaw and treasurer Enrico Gaw were charged in the complaint.

The company’s gross sales should be P2.91 million ($65,253.51) in 2010; P5.08 million ($113,912.94) in 2011; P3.51 million ($78,707.50) in 2012; and P16.43 million ($368,419.97) in 2013.

But Sabroso Lechon only declared gross sales of P640,000 ($14,351.09) in 2010, and did not file any ITR in 2011, 2012, and 2013.

“We’re assessing them P15.15 million ($339,795.75), inclusive of surcharge and interest,” Henares said.

Raps vs self-made billionaire

BIR also announced Tuesday that it slapped a tax evasion complaint before the Department of Justice (DOJ) against self-made billionaire Joseph H. Calata, the president and CEO of Calata Corporation and sole proprietor of Zeon Paint Service Center.

Calata’s agribusiness firm was previously investigated for alleged manipulation of the firm’s share price.  

The Securities and Exchange Commission (SEC) alleged that the individuals, who include former owners of Calata before its maiden market offer and the firm’s financial adviser, all conspired to artificially raise the price of Calata shares by as high as 226%. (READ: 13 face charges for ‘manipulating’ Calata share price)

The bureau found out that Calata only declared with BIR gross sales/receipts of only P2,756,533.33 ($61,826.39) for the period 2005 to 2011.

BIR said in a statement that Calata’s annual income tax return for taxable years 2009 to 2010 showed that he only paid P10,000 ($224.29) for each year and P100,000 ($2,242.89) for taxable year 2011.

Henares said that they look at all companies that went public.

BIR is now dodging complaints against its order for taxpayers to electronically file their ITRs, with Henares even telling taxpayers that they go to an Internet café so they could complete the e-filing.

BIR extended the deadline for electronically filed “No Payment” ITRs to June 15, but the April 15 deadline for the manual filing for “No Payment” ITRs will still be in effect. (READ: Why the BIR e-filing system is not feasible – for now) – Rappler.com

 

$1 = P44.58

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