BIR files tax evasion case vs. Mozcom

By: - Reporter / @bendeveraINQ
/ 02:21 PM November 29, 2018

Main office of the Bureau of Internal Revenue (File photo AFP)

The Bureau of Internal Revenue (BIR) has filed a tax evasion case against Mozcom Inc., regarded as the country’s first commercial internet service provider (ISP).

While Mozcom already closed down and its customers transferred to another ISP, TRI.ph, in 2015, the BIR was running after P301.1 million in allegedly unpaid taxes from 2011 to 2012.


In a statement Thursday, the BIR said Mozcom had deficiency tax liabilities worth P69.9 million in 2011 on top of a bigger P231.2 million in 2012.

The BIR said the agency has charged for violation of the National Internal Revenue Code of 1997 or the Tax Code the following former Mozcom executives: chairman Richard B. Gan, president Robertson S. Chiang, as well as treasurers Leeca V. Austria and Xelynne Q. de Lara.


Austria was company treasurer in 2011, while de Lara took over the post the following year.

“BIR Makati City records of investigation showed that the abovementioned respondents were served the corresponding letters of authority, requests for presentation of records, preliminary assessment notices, formal assessment notices/formal letters of demand with details of discrepancies, and final decision on disputed assessments with details of discrepancies but failed to either pay or protest and submit relevant supporting documents to either substantiate their claims or to refute said assessments or to file an appeal with the Court of Tax Appeals, hence making the said assessments final, executory, and demandable,” the country’s biggest tax-collection agency said.

“The BIR conducted collection and enforcement strategies with the issuance of the preliminary collection letters and final notices before seizure that proved futile as the afore-cited assessments remained unpaid. Likewise, warrants of distraint and/or levy were issued and served but the respondents had no properties which may be distrained or levied,” it added.

“The respondents’ obstinate failure and continued refusal to pay their long overdue deficiency taxes, despite repeated demands, constitute willful failure to pay the taxes due to the government,” according to the BIR.

The case was filed before the Department of Justice (DOJ) under the BIR’s Run After Tax Evaders (Rate) program. /jpv

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