BIR files tax case vs. metal and semiconductor company

MANILA, Philippines–The Bureau of Internal Revenue (BIR) on Thursday filed with the Department of Justice (DOJ) a case for  tax evasion against a metal product and semiconductor peripherals manufacturing company.

Slapped with a case for willful failure to pay taxes under the National Internal Revenue Code (NIRC) were Vivetech Corporation (Vivetech) and its corporate officers – President/Chairman Edwin B. Lumague and Treasurer Roedel R. Lumague.

Vivetech was likewise charged for unpaid deficiency tax liabilities for taxable year 2009 in the aggregate amount of P32.96 million, inclusive of increments, consisting of: P19.01 million – Income Tax; Income Tax (Minimum Corporate Income Tax) – P170,000; Value Added Tax – P12.49 million; Expanded Withholding Tax -P510,000; Documentary Stamp Tax -P160,000; Income Tax (Improperly Accumulated Earnings Tax)- P580,000; and Compromise Penalty – P35,000.00.

Records from BIR Makati showed that the requisite Electronic Letter of Authority (eLA), Preliminary Assessment Notice (PAN) with Details of Discrepancies, and Formal Assessment Notice (FAN) with Details of Discrepancies were served and received by Vivetech. However, it failed to protest said assessments within the thirty-day reglementary period, hence making the same final, executory, unappealable and demandable.

The BIR added that other issuances that it has sent to Vivetech were also ignored because its tax liability remains unpaid.

“The respondent’s obstinate failure and continued refusal to pay its long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government,” the BIR said in its complaint.