Royale Business Club faces tax evasion charges

ABS-CBN News

Posted at Mar 12 2015 12:36 PM | Updated as of Mar 13 2015 01:03 AM

MANILA, Philippines - A popular multi-level marketing club has been accused of tax evasion before the Department of Justice.

The Bureau of Internal Revenue (BIR) filed a criminal complaint against Royale Business Club International for willful attempt to evade or defeat tax, and deliberate failure to supply correct information in its annual income tax returns and quarterly value added tax returns in 2011, 2012 and 2013.

Charged were Royale's president Julius Allan G. Nolasco, vice president for finance and treasurer Isa Angela C. Bautista and assistant treasurer Jeanette R. Maghirang, assistant treasurer Imelda P. Pedron, and assistant accounting manager Marjorie G. Molina.

Royale is a company involved in the marketing consumer products and distributorship of food supplements, cosmetics, pharmaceutical products and beverages. Its registered address is at 1363 A. Quezon Avenue, West Triangle, Quezon City.

The BIR had requested banks for records of Royale's payments to them. BPI, Metrobank, and Banco de Oro certified that they paid Royale P141.60 million, P468.55 million, and P171.07 million, respectively.

In total, Royale received income payments from the said banks amounting to P190.79 million in 2011, P236.38 million in 2012, and P354.06 million in 2013.

However, the BIR investigators discovered that Royale declared in its ITR gross sales of only P39.14 million in 2011, P106.69 million in 2012, and P196.68 in 2013. This meant the company underdeclared its correct taxable sales by 387 percent in 2011, 122 percent in 2012 and 80 percent in 2013.

The BIR sued Royale for an aggregate deficiency tax liability amounting to P359.75 million, inclusive of surcharges and interests, broken down into.