MANILA, Philippines—A supplier of digital cameras in Quezon City and officials of the Benguet Electric Cooperative (Beneco) are facing criminal charges filed with the Department of Justice (DoJ) for allegedly duping the government of millions of pesos in unpaid taxes.
In separate complaints, the Bureau of Internal Revenue (BIR) filed on Thursday tax evasion cases against businessman Michael Chan and Beneco officials for allegedly under-declaring their tax obligations deliberately.
Speaking in a news conference, BIR commissioner Kim Henares said Chan, the registered owner of “New Canary Photo,” owed the government almost P136 million in income tax after he “grossly misdeclared” his earnings by almost 60 percent and 183 percent in 2009 and 2009, respectively.
Citing records culled by the BIR’s Run After the Tax Evaders (RATE) unit, Henares said the businessman declared that he earned P103.58 million in 2008 when documents showed that he actually profited P165 million.
In the following year, she said Chan listed his income as P55.23 million when he actually earned P156.56 million.
She said RATE investigators discovered Chan’s tax liabilities by comparing his income declarations with the taxes paid by his firm’s customers, mainly branches of the SM chain of shopping malls.
“This is classic case where the data that taxpayers submitted to us are matched with those of somebody selling or somebody purchasing from them,” Henares said.
In the case of Beneco officials, the BIR commissioner said the electric cooperative intentionally under-declared the value of two properties it bought from a bank along South Drive, Baguio City.
She said Beneco officials claimed that they bought the lands for P85 million when the actual amount they paid with BDO was P183.45 million.
According to Henares, the cooperative should have paid P14.59 million in creditable withholding taxes to the government.
“I think this is a fair warning to everyone that they should comply with their obligation to pay the correct taxes,” she said.