Cellphone trader slapped with P163-M tax evasion case

By Ina Reformina, ABS-CBN News

Posted at May 26 2011 03:24 PM | Updated as of May 27 2011 08:56 PM

MANILA, Philippines (UPDATE) - A telecommunications trader was charged before the Department of Justice (DOJ) by the Bureau of Internal Revenue (BIR) for willful attempt to evade or defeat tax, deliberate failure to file income and value-added tax returns (ITR), and failure to register as VAT taxpayer.

BIR Commissioner Kim Henares told reporters Danilo C. Robles of Urdaneta City, Pangasinan, engaged in buying and selling handsets, simpacks, electronic load (eLoad) and prepaid cards, substantially under-declared his income and purchases for the first quarter of 2007 and deliberately failed to report the rest of his income for said year and his entire income for 2008.

The estimated tax liability of Robles is P162.71 million, inclusive of surcharges and interests. This is broken down into: P23.90 million income tax, and P138.81 million VAT.

Henares said the BIR discovered discrepancies between certifications for list of sales issued by Pilipino Telephone Corporation (PTC) and SMART Communications Inc. on Robles' purchases from them, and the list of purchases made by Robles.

PTC and SMART certified Robles made purchases from them amounting to P332.44 million in 2007, and P164.15 million in 2008. Robles, however, declared "a meager income" of P680,000 for the first quarter of 2007 and failed to declare income for the rest of 2007 and the whole of 2008.

"With the failure of Robles to report his purchases from PTC and SMART and to file his ending inventory lists with the BIR, the subject purchases necessarily were all sold and disposed of resulting in under-declared sales of P357.23 million and P176.39 million for 2007 and 2008, respectively," the BIR said.

Robles also failed to register as VAT taxpayer as required by the Tax Code, while the BIR said "there exist reasonable grounds to believe that his gross sales in 2007 will exceed the P1.5 million threshold for VAT registration" based on his initial purchases of P21.1 million for said year.

The case against Robles is the 48th filed by the BIR under its revitalized Run After Tax Evaders (RATE) program under the Aquino administration.