MANILA, Philippines – The Bureau of Internal Revenue (BIR) has filed a criminal complaint against Philippine Canine Club Inc. (PCCI), the country's first dog registration body, for allegedly evading taxes from 2006 to 2011 amounting to P68 million.
BIR said charges were filed against the company and its past officers Augusto Santos III, Ronnie Natividad, Bernardito Jalandoni Repaldor, Danny Ramillano, Jonny Filart, and Emmanuel Santos.
Acting on a complaint from an informant, BIR investigated PCCI’s tax records and discovered that PCCI declared gross sales of P34 million, P31 million, P32 million, P42 million, P37.69 million, and P42.66 million for taxable years 2006, 2007, 2008, 2009, 2010 and 2011, respectively.
However, BIR said its records showed that PCCI failed to file its value added tax (VAT) returns and pay its VAT liabilities for taxable years 2006 to 2011.
PCCI is a local firm that aims to advance the study, breeding, exhibiting, running and maintenance of purebred dogs through the maintenance of a registry.
Tax evasion charges were also filed against advertising company PHD Media Network 2006 Inc. (PMNI) and its officers for tax liabilities amounting to P532 million from 2009 to 2011.
The officers facing charges for willful attempt to evade or defeat tax, and for deliberate failure to supply correct and accurate information in its income tax returns (ITRs) and VAT returns are Herminia de Leon and Rowena Nardo.
BIR said investigations showed that PMNI deliberately failed to declare its correct taxable base by underdeclaring its taxable income by 314.69 percent in 2009, by 260.15 percent in 2010, and by 123.16 percent in 2011.
An underdeclaration of taxable income by more than 30 percent is considered substantial and constitutes a prima facie case of fraud tantamount to tax evasion under Sec. 248 (B) of the Tax Code.
Meanwhile, two separate criminal complaints were also filed against Edelberto Marasigan Endozo, the sole proprietor of retail business Emendozo Trading for failing to pay P107 million in taxes, and construction business Master C Re-De Inc. for a P9.7 million tax deficiency.
Also charged were Master’s president Teodoro Chua and treasurer Beatriz Chua. - With report from Ina Reformina, ABS-CBN News