Cebu City gold trader panned with P2.67B tax evasion case

08 December 2011

Cebu City gold trader panned with P2.67B tax evasion case

The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a criminal complaint against a Cebu City gold trader – JUNRIE DAITOL TENORIO - for five (5) counts of willful attempt to evade or defeat tax, fifteen (15) counts of willful failure to file Quarterly Income Tax Returns (ITRs), and five (5) counts of willful failure to file Annual ITRs for taxable years 2005, 2006, 2007, 2008 and 2009, in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (NIRC).

TENORIO is a resident of 2170 Tambis St., Guadalupe, Cebu City (South). He is registered with Revenue District Office No. 82, South Cebu City, as a taxpayer earning purely compensation income.

Sometime in May 2011, the Bangko Sentral ng Pilipinas (BSP) sent to the BIR a list of individuals who had gold transactions with the BSP, together with the Letter of Authorization executed by TENORIO and Letters of Delivery and Sales (LDS) relative to the said gold transactions. The said documents disclosed that TENORIO sold gold to BSP amounting to P3.95 billion during the five (5) year period in question.

Despite receiving taxable income from his gold transactions with the BSP, however, TENORIO failed to file his Annual ITRs for taxable years 2005 to 2009. Not only did he fail to file the required tax returns, he also did not pay his income taxes due on the said taxable years.

TENORIO was assessed deficiency income tax for taxable years 2005 to 2009 in the estimated aggregate amount of P2.67 billion, inclusive of surcharges and interests.

The case against JUNRIE DAITOL TENORIO is the eighty-second (82nd) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

BIR sues supplier of popular giant food chain

05 January 2012

BIR sues supplier of popular giant food chain

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against GREAT WALL PROMOTIONALS CO. LTD., CARLITO N. PANCHO, FLORDELIZA M. CASIMIRO, GEORGE T. CO, JR. and ROBERTO T. CO - for willful attempt to evade or defeat tax and for deliberate failure to supply correct and accurate information in its Income Tax Return (ITR) for taxable year 2008, in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

GREAT WALL is a partnership duly registered with the Securities and Exchange Commission (SEC) whose principal office is located at National Road, Sta. Cruz, Zambales.

Results of investigation showed that although the partners indicated in the Articles of Partnership are Pancho and Casimiro, they are mere dummies of George T. Co, Jr. and Roberto T. Co, who are the real principals of GREAT WALL as shown in the 2007 Mayor’s Permit issued by the Municipality of Sta. Cruz, Zambales and the SEC Registration Data Sheet obtained by the BIR.

Information gathered in the course of the investigation also disclosed that GREAT WALL had reported total sales of P1.47 million in its ITR and Quarterly Value Added Tax (VAT) returns for taxable year 2008. Verification of its reported income with Jollibee Foods Corporation, however, revealed that GREAT WALL received from the former income payment amounting to P266.48 million.

Comparing the information received from Jollibee with its declarations with the BIR, investigators discovered that GREAT WALL deliberately failed to declare its correct tax base by substantially underdeclaring its income for 2008 by 18,076.26% or by P265.01 million.

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

For taxable year 2008, GREAT WALL was slapped with a total deficiency tax assessment of P240.31 million, inclusive of surcharges and interests, broken down into: P173.81 million – Income Tax; and P66.50 million - VAT.

The case against GREAT WALL PROMOTIONALS CO. LTD., CARLITO N. PANCHO, FLORDELIZA M. CASIMIRO, GEORGE T. CO, JR. and ROBERTO T. CO is the eighty-fifth (85th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)