BIR: Trash collector evaded P300-M in taxes

By Ina Reformina, ABS-CBN News

Posted at Oct 07 2010 01:14 PM | Updated as of Oct 08 2010 09:53 AM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has filed tax evasion charges against a garbage collection and disposal contractor of 4 local government units in Metro Manila for a total tax delinquency of nearly P300 million.

Charged before the Department of Justice (DOJ) were Ren Transport Corporation and its responsible corporate officers - Reynaldo Pazcoguin III, president; Edwina Pazcoguin, corporate secretary; Nenita Biag, treasurer; and Edson Fernandez, accountant.

BIR Commissioner Kim Henares said that based on documents obtained from the cities of San Juan, Muntinlupa, Malabon and Caloocan, the revenue department found that Ren Transport was paid P150,474,855 in 2006; P186,407,019 in 2007; and P85,126,542 in 2008.

However, in its income tax returns (ITR), it was found to have underdeclared its income by P96,385,401 in 2006 or an under-declaration of 178.20%; P120,871,381 in 2007 or an under-declaration of 184.44%; and, P66,535,345 in 2008 or an under-declaration of 357.89%.

Under the tax code, an under-declaration of taxable income of more than 30% is considered a substantial under-declaration to warrant prima facie evidence of a false return.

As for taxable year 2009, the BIR has found out that Ren Transport failed to file its ITR as well as the corresponding income tax due despite having been paid by the cities of San Juan and Caloocan P27,582,362 for its services.

The case is the 10th filed by the BIR under the Aquino administration.