BIR files 10 more tax evasion cases at the DOJ

The Bureau of Internal Revenue (BIR) on Thursday announced it had slapped tax evasion cases against one company and nine individuals—among them five Filipino employees of the Manila-based multilateral lender Asian Development Bank (ADB) as well as the owner of a well-known bar and restaurant in Makati City.

In a statement, the BIR said it had filed separate criminal complaints before the Department of Justice against the following people: Andren Ruby Dizon (owner of Society Lounge and Resto Bar); ADB employees Donalita T. Balagtas, Rhodora Concepcion, Noel S. Gamo, Jose Frasier Gomez and Anna Marie E. Siquian; Christopher John Junio Coronel (owner of dental equipment retailer Equipdent Trading); Rebecca S. Tiotangco (owner of Puerto Princesa, Palawan-based Malampaya project contractor Anilos Trading and Construction); and certified public accountant (CPA) Edencio M. Cervantes.

Also brought to court was drinks manufacturer Alternative Beverages Co. Inc., including its president Alfredo Ramon M. Herrera.

The nine individuals and the lone firm were charged mainly for willful attempt to evade or defeat tax in violation of the National Internal Revenue Code of 1997, as amended, or the Tax Code.

In the case of bar and restaurant owner Dizon, the BIR alleged the respondent did not pay correct taxes from 2010 to 2012. Citing documents such as access letters as well as alphalists from Dizon’s clients, he was found to have had underdeclared his taxable income by P0.46 million in 2010, P2.89 million in 2011, by P1.28 million in 2012—an aggregate deficiency tax liability worth P3.88 million, including surcharges and interests.

The five ADB employees, meanwhile, had income tax liabilities for taxable year 2013, as follows: P1.06 million for Balagtas, P2.20 million for Concepcion, P0.78 million for Gamo, P0.72 million for Gomez, and P0.89 million for Siquian.

“The agreement between ADB and the government of the Republic of the Philippines states that only officers and staff of the ADB who are not Philippine nationals shall be exempt from Philippine income tax. Thus, [the five respondents], being ordinary employees of ADB and Philippine nationals, are subject to income tax. However, they all refused to pay any income tax due on their respective ITRs [income tax returns],” the BIR said.

“The willful failure of the respondents to pay their income tax liability was further emphasized by their obstinate refusal to pay their taxes despite notification and assistance from the BIR to ADB Filipino employees to file their returns and pay the corresponding tax dues. The BIR through its ADB task force briefed ADB officials and ADB’s Filipino employees and answered concerns and issues on the taxability of the compensation income of Filipino ADB employees,” the agency added.

The BIR pointed out that it had put up a kiosk at the lobby of the ADB headquarters wherein Filipino ADB personnel can transact business and accommodate registration, transfer of registration and updating of records, filing of ITRs and payment of taxes. The agency had also extended by two months the deadline for payment of taxes by local ADB personnel.

In the case of Coronel, the tax deficiency for taxable year 2007 totaled P12.9 million, comprised of P7.3 million in income and P5.6 million in value-added tax (VAT).

Tiotangco’s tax liabilities, meanwhile, amounted P82.36 million for the period 2008 and 2010. Cervantes was included in the charge sheet for certifying Tiotangco’s financial statements.

For Alternative Beverages, whose facility is in Pasig City, the BIR computed unpaid taxes worth a total of P28.7 million in 2006.

These 10 new cases brought up to 292 the cases filed under the BIR’s Run After Tax Evaders (RATE) program, which is spearheaded by Commissioner Kim S. Jacinto-Henares.