Ad agency faces P70.78 million tax evasion case

ABS-CBN News

Posted at Jan 31 2013 01:04 PM | Updated as of Jan 31 2013 09:04 PM

MANILA, Philippines - Officials of an advertising agency are facing a P70.78 million tax evasion case filed by the Bureau of Internal Revenue.

In a statement, the BIR said it filed a criminal complaint with the Department of Justice against Adformatix Inc, its president Liane E. Veragara and vice-president Nestor Reantaso for their failure to pay taxes in 2007.

Adformatix is a marketing communications agency with an office at the Republic Glass Building in Makati City.

The BIR investigation showed tha Adformatix was issued a letter of authority for the examination of its books and accounts for 2007. However, the agency did not submit the documents.

The BIR said Adformatix's total deficiency tax liabilities amount to P70.78 million -- including P10.205 million in income tax;  P59.638 million in value-added tax;  P0.548 million in expanded withholding tax and P0.386 million in withholding tax on compensation.

Adformatix protested the assessment but this was denied by the BIR. The tax liabilities remain unsettled.

"Despite such repeated demands and the lapse of a considerable length of time, Adformatix has obstinately failed and adamantly refused to pay its long overdue deficiency tax assessments for 2007, to the prejudice of government," the BIR said.