BIR files charges vs. 9 companies over tax evasion

Mike Navallo, ABS-CBN News

Posted at Oct 19 2018 05:30 PM

MANILA - The Bureau of Internal Revenue on Friday filed tax evasion charges against 9 companies and their officers for failing to pay income, withholding, value-added and other taxes cumulatively amounting to around P439 million.

Among those charged before the Department of Justice for violation of Sec. 255 of the Tax Code were:
-transport company Citistar Transport for tax deficiencies amounting to P3.66 million for 2011;
- business process outsourcing company GCS Agents for tax deficiencies amounting to P92.34 million for 2011;
- computer software company I.T. Citi Services for tax deficiencies amounting to P3.06 million for 2008;
- general building contractor MAVIMA Group for tax deficiencies
amounting to P54.01 million for 2012;
- janitorial service-provider Sparrow Integrated for tax deficiencies
amounting to P21.50 million for 2008;
- retailer and wholesaler Uniwide Sales for tax deficiencies amounting to P84.27 million for 2012;
- wholesaler and distributor Wye Marketing for tax deficiencies
amounting to P71.74 million for 2009; and
- textile manufacturer, importer and exporter Yarntech for tax
deficiencies amounting to P104.98 million for 2013.

The BIR also filed tax evasion charges under section 254 and 255 of the Tax Code against wholesaler and retailer Hadrian International for tax deficiencies amounting to P3.29 million due for the period of March to April 2018.

Hadrian International allegedly failed to pay or remit withholding
taxes on compensation and expanded withholding taxes from 2016 to 2018 on the same day it filed its electronic return. The agency implements a “pay-as-you file” principle requiring tax payers to pay their taxes on the day of the filing of their electronic tax returns.

Section 254 of the Tax Code penalizes attempts to evade taxes with fines of up to P100,000 and between 2 to 4 years imprisonment.

Section 255, on the other hand, punishes acts such as the failure to file tax returns or the failure to pay, withhold or remit taxes to the government, with up to 10 years imprisonment and a fine of at least P10,000.

These penalties will be imposed on the responsible officers of the companies who were also impleaded in the complaints.

If found liable, the company could also be ordered to pay fines ranging from P50,000 to P100,000.