BIR files tax evasion raps vs Makati cake supplier
MANILA, Philippines – The Bureau of Internal Revenue (BIR) on Thursday, December 18, filed a tax evasion case against a food company that supplies birthday cakes for the city of Makati.
According to the BIR, Kim Tun Chong, who owns Cups and Mugs Kitchenette, owes the government over P46.6 million, including surcharges and interests.
Chong is also the food caterer of the Ospital ng Makati and the Makati City Hall.
Based on the BIR’s computations, the Makati city government paid Chong over P107.64 million from 2009 to 2011 for providing cakes the local government gives to its senior citizens on their birthdays, and for catering food in the two city buildings’ canteens.
However, Chong allegedly under-declared his income during those years.
The BIR alleged that Chong “substantially under-declared his correct income and deliberately failed to pay the correct taxes.”
Chong, who supplied Makati’s cakes until February 2014, is allegedly only a front for Vice President Jejomar Binay, a former mayor of Makati. Another Chong, Erlinda, allegedly also served as Binay’s dummy to acquire over P1 billion in land.
Whistleblowers allege the cakes from the city were really supplied by Binay’s daughter, Senator Nancy Binay. The Binays have denied the allegations.
The cakes are only one of many controversies to hit the Vice President since the Senate blue ribbon sub-committee began its probe into corruption allegations against him.
Binay has been accused of rigging bids for city projects and accepting kickbacks in return, and also of accepting condominium units from developers or contractors in exchange for permits and documents from city hall.
The Vice President and his family supposedly hid their wealth through dummies and foreign bank accounts.
The Binays have denied the allegations against them, insisting that the plunder charges pending before the Ombudsman, the probe, and the allegations of whistleblowers are only tactics to make sure the Vice President does not win the presidency in 2016.
A handful of individuals mentioned in the ongoing probe have found themselves in trouble either legally or in their personal lives. The week prior, the BIR filed tax evasion charges against James Tiu and wife Ann Buencamino, who both donated millions for Binay’s vice presidential campaign in 2010.
Tiu is the brother of businessman Antonio Tiu, who has also been accused of being Binay’s dummy. – Bea Cupin/Rappler.com