BIR slaps tax evasion raps vs construction firm, others

By Ina Reformina, ABS-CBN News

Posted at Nov 15 2012 02:19 PM | Updated as of Nov 15 2012 10:20 PM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) filed tax evasion charges on Thursday against construction firm 515 Builders Corp. and its responsible officers for non-payment of income tax returns (ITR) amounting to P16.44 million for taxable years 2009, 2010 and 2011.

BIR Commissioner Kim Henares bared that the Mandaluyong City-based firm "willfully failed" to file its annual ITRs for said years, resulting in the non-payment of the correct taxes.

Charged were Winston C. Dy, 515 Builders' president, and chief financial officer Olivia S. Dy.

The firm was investigated for tax liabilities for 2009. The probe showed that it filed a fictitious ITR. As for taxable years 2010 and 2011, the firm's ITRs were found to be non-existent, Henares added.

2 individuals and the Registrar of Deeds of Manila were also charged separately in connection with the sale of a residential condominium unit and a parking lot.

Charged were Stephen Lee Keng and Elvinario A. Valenzuela for 2 counts of willful attempt to evade taxes, 1 count of willful failure to file Capital Gains Tax Returns, and 1 count of willful failure to file Documentary Stamp tax Returns.

Atty. Marissa E. Timones, Registrar of Deeds of Manila was also charged for allowing the transfer of the titles despite the non-payment of appropriate taxes.

BIR Commissioner Kim Henares bared that Keng sold to Valenzuela a condominium unit and a parking lot located at 1503-B 15th floor Tower B and U2P-08, Upper 2nd Flr., respectively, of Alpha Grandview Condominium in M.H. del Pilar., Malate, Manila, for P3.2 million as shown by a Deed of Absolute Sale dated June 23, 2010.

The transaction did not go through the BIR, Henares said. No capital gains tax and documentary stamp tax returns were filed and paid for.

Keng was assessed capital gains tax amounting to P461,433, including surcharges and interests, while Valenzuela was assessed unpaid documentary stamp tax in the amount of P115,953.

The cases against 515 Builders, and Keng, et al. are the 134th and 135th filed by the BIR under its Run After Tax Evaders (RATE) program under the Aquino administration.