MANILA, Philippines ? The Bureau of Internal Revenue today filed a tax complaint against officials of DSM Construction and Development Corporation (DSM) for failure to supply correct information in their income tax return and for their tax deficiency worth over P52 million.

Slapped with the complaint are Dennis Masigan and Natalie Ng Masigan as President and Corporate Secretary of DSM. Both are residents of Corinthian Gardens. Also included as co-respondent is Eldrin Masigan, Vice President for Operations of the Corporation.

They were charged at the DoJ for their failure to supply correct and accurate information in the 2006 income tax return and to pay the correct income tax therefore as well as failure to file value-added tax returns and pay VAT in 2006.

DSM is a domestic corporation registered with the Securities and Exchange Commission engaged in the business of general construction. Assessment of tax deficiency worth P52,473,951.02 and P16,064,142.97 inclusive of increments as civil liability.

The case stemmed from the failure of DSM to report to the BIR the P80 million compromise settlement it received in full from mega World Globus Asia, Inc (Mega World) in 2006. The settlement was at the time considered as the ?construction industry?s largest arbitration award? for unpaid billings claimed by DSM against Mega World on construction contracts with the latter corporation.

BIR said, despite the receipt of the settlement payment of Mega World, DSM failed to declare the payment as part of its gross income/receipts or sales in taxable year 2006. Investigation showed that the status of DSM in 2006 was ?no operation? hence no income taxes were paid.

?The deliberate and willful failure of DSM to supply correct and accurate information in its 2006 ITR and pay the correct income tax therefore as well as willful failure to file VAT return and pay VAT for 2006 are patent violations of the pertinent provisions of Section 255 of the Tax Code of 1997,? BIR said.