Philrem Service Corp., the controversial remittance firm embroiled in the alleged laundering of $81 million stolen from Bangladesh’s central bank, on Thursday was slapped a P35.6-million tax evasion case by the Bureau of Internal Revenue (BIR), which found that the company did not pay taxes for a decade.
In a statement, the BIR said the case it filed before the Department of Justice against the Makati City-based company as well as two officers—president Salud R. Bautista and treasurer Michael S. Bautista—was for non-payment of gross receipts tax (GRT) alongside failure to file percentage tax returns (PTRs), a violation of the Tax Code.
“In its registration with the BIR, Philrem’s line of business is ‘other land transport operation not elsewhere classified.’ Philrem thereafter amended its primary purpose with the Securities and Exchange Commission which is to engage in the business of remittance of money/currency from abroad to be delivered to the different parts of the Philippines. Despite the change in its primary purpose, it did not update its registration with the BIR,” the country’s biggest tax-collection agency said.
READ: Philrem runs into more trouble with taxes
“Philrem is likewise registered with the Bangko Sentral ng Pilipinas (BSP) to act as a remittance agent for the period 2005 to present. As a money remittance corporation and classified by the BSP as a non-banking financial institution (NBFI), it is subject and should be taxed for its gross receipts. NBFI are a diverse group of financial entities regulated by the BSP composed of private remittance companies, money transfer operators or remittance agents. Philrem filed value-added tax (VAT) returns and paid the tax due thereon instead of filing PTRs and paying the 5-percent GRT,” the BIR said.
“The gross failure of Philrem to register, declare and pay the GRT showed a clear intent and purpose on its part to evade the payment of the correct amount of taxes. Further, its failure to update its registration with the BIR made it liable for unlawful pursuit of business,” according to the BIR.
The BIR said Philrem failed to pay the following amounts of GRT: P3.33 million in 2005, P6.61 million in 2006, P6.27 million in 2007, P5.46 million in 2008, P3.17 million in 2009, P2.59 million in 2010, P2.07 million in 2011, P1.85 million in 2012, P1.94 million in 2013, and P2.32 million in 2014. CDG
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