Toshiba unit, Pagcor concessionaire face tax evasion raps


Posted at Aug 02 2012 12:17 PM | Updated as of Aug 03 2012 01:22 AM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint for tax evasion against against a local unit of Japanese electronics giant Toshiba and a PAGCOR concessionaire.

In a statement, the BIR said it filed a criminal complaint for tax evasion against Toshiba Plant Systems and Services Corp. (Philippines) before the Department of Justice for failing to pay the correct taxes in 2007. The charges were against Toshiba Plant general manager Akio Sugawara, and its resident agent, Rodolfo M. Bausa.

The BIR is seeking the payment of P58.11 million in deficiency taxes from Toshiba for taxable year 2007.

The BIR has already garnished Toshiba’s accounts in five banks, Banco de Oro, the Bank of Philippine Islands, China Banking Corporation, Metropolitan Banking Corporation and United Coconut Planters Bank, to collect on the taxes. However, it was only able to collect 136,364.47 from BPI, since the other banks claimed Toshiba had no existing accounts.

In August 2008, the BIR first asked to examine Toshiba's books for 2007, but it was ignored. The BIR even ignored a subpoena duces tecum issued on February 12, 2009, which prompted the agency to file a criminal case against Toshiba's officers.

During its audit of Toshiba's plant in Better Living, Paranaque, the BIR discovered it had failed to report P20.18 million in sales for 2007. Further examination of its certificates of creditable tax withheld showed an accumulated sales of P58.74 million and unsupported carry-over losses from taxable year 2006 in the amount of P27.7 million.

The BIR assessed Toshiba's total tax liability at P58.74 million, which the company did not contest nor pay.

"Despite such repeated demands and lapse of considerable length of time, Toshiba has obstinately failed and adamantly refused to pay its long overdue deficiency tax assessments for 2007 to the prejudice of government," the BIR said.

Meanwhile, the BIR also filed tax evasion charges against Lilia Gonzales, who owns Yasiok Dimsum Food, for tax deficiencies worth P41.42 million for 2008 to 2010.

Gonzales is a concessionaire of Philippine Amusement and Gaming Corp.'s (PAGCOR) Casino Filipino, but she failed to declare her income when she did not file income tax returns for the taxable years 2008 to 2010.