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Engineer charged with tax evasion for substantial underdeclaration of income

Engineer charged with tax evasion for substantial underdeclaration of income

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ENGR. NORBERTO ELISTERIO FEDELICIO for acts or omissions constituting willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information for taxable years 2009 and 2010, in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

ENGR. FEDELICIO is a contractor engaged in the construction business. He owns SETTLERS BUILDER with principal office address at Malandog, Hamtic, Antique.

Investigation showed that ENGR. FEDELICIO received income payments amounting to P46.43M for taxable year 2009 and P28.73M for taxable year 2010. The said amounts were summed up from information gathered from various government offices, departments and local government units with which the subject engineer contracted business with.

A verification of the Income Tax Returns of the engineer covering the same taxable years showed, however, that he only declared sales/receipts/revenue/income amounting to P12.89M and P10.09M for taxable years 2009 and 2010, respectively.

Investigators compared the amounts gathered from third party information with declarations by the subject engineer with the BIR and found a great discrepancy in sales of more than 30% amounting to P33.54M in 2009 and P18.64M in 2010.

Under the Section 248 (B) of the Tax Code, a substantial underdeclaration of more than thirty percent (30%) constitutes prima facie evidence of fraud.

Total deficiency tax assessment against ENGR. FEDELICIO for the two-year period 2009-2010 is 26.41M – Income Tax.

The case against ENGR. NORBERTO ELISTERIO FEDELICIO is the seventy-sixth (76th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise the first (1st) RATE case of Revenue Region No. 11, Iloilo City.

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