3 traders face raps over tax violations


Posted at Apr 24 2014 03:00 PM | Updated as of Apr 24 2014 11:00 PM

MANILA, Philippines – Three businesses were slapped with criminal complaints by the Bureau of Internal Revenue (BIR) over tax violations.

A businesswoman engaged in wholesale and retail goods, Michelle Sabino, is facing charges for Willful Failure to Pay Taxes under the National Internal Revenue Code of 1997.

Sabino was sued for having deficiency tax liabilities amounting to P41.59 million, inclusive of increments, for taxable year 2006 consisting of P30.25 million in Income Tax (IT) and P11.34 million in Value Added Tax (VAT).

Security service Kintanar Detective Associated Inc., its president Gloria Kintanar and treasurer Maria Victoria Jopson were slapped with the same charges for deficiency tax liabilities for taxable year 2006 of P21.42 million, inclusive of increments, consisting P14.79 million in IT and P6.63 million in VAT.

BIR said its investigation showed that the respondents were served the corresponding Letter Notice (LN), Letters of Authority (LOA), Preliminary Assessment Notices (PAN), Final Assessment Notices (FAN) and Formal Letters of Demand (FLD) with Details of Discrepancies but failed to protest said assessments, hence making the same final, executory, and demandable.

The subsequent issuance of Preliminary Collection Letters, Final Notices Before Seizure, Warrants of Distraint and/or Levy and Garnishment, and Demands Before Suit were also ignored, as the said tax assessments remained unpaid, the BIR said.

Their failure and continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government.

A manufacturer of metal products under the name Buildcraft Fabrication is also facing charges for several tax violations.

Its owner, Myra Santiago, is facing complaints for Willful Attempt to Evade or Defeat Tax for taxable years 2009, 2010 and 2011, Deliberate Failure to Supply Correct and Accurate Information in her Annual Income Tax Returns (ITR) for taxable years 2009 and 2010 and in her Percentage Tax Return (PTR) for the 1st quarter of taxable year 2009, Deliberate Failure to File Annual ITR for taxable year 2011, Deliberate Failure to File Value Added Tax (VAT) Returns for the 2nd, 3rd and 4thquarters of taxable year 2009 and the entire taxable years 2010 and 2011, and Failure to Register for VAT, all in violation of Sections 254, 255 and 275 in relation to Section 236 (C) and (G) of the National Internal Revenue Code of 1997, as amended (Tax Code).

She was sued by the BIR for an aggregate deficiency tax liability amounting to P22.25 million, including surcharges and interests, broken down into: 2009 – P5.05 million (IT – P3.71 million; Percentage Tax – P0.12 million; VAT – P1.22 million); 2010 - P9.92 million (IT – P6.76 million; VAT – P3.16 million); and 2011 – P7.28 million (IT – P5.14 million; VAT – P2.14 million).