Tax court orders arrest of trader under BIR's rate

MANILA, Philippines - The Court of Tax Appeals (CTA) has ordered the arrest of a certain businessman after finding probable cause in a case filed by the Bureau of Internal Revenue (BIR) for failing to pay his tax obligations to the agency.

In a statement issued during the weekend, the BIR said businessman Richard Santos, owner of a local construction firm, failed to file his income tax return and pay the tax due for calendar years 2001 to 2004 amounting to P8.9 million.

The order was issued by the CTA against Santos as sole proprietor of local construction firm Fast Construction Services.

The BIR said Santos is at large and his whereabouts unknown. His last known address was No. 8 St. Luke St., Bgy. Horseshoe Village District 3, Quezon City.

In the notice of resolution submitted by the court last March 22, the accused was charged for violating provisions of the Tax Code.

BIR deputy commissioner for legal and inspection group Gregorio Cabantac said Santos been charged by the BIR before the Department of Justice for unlawful pursuit of business, issuance of unregistered official receipts and invoices, failure to remit taxes withheld, and for failure to file income tax and value added tax (VAT) returns and failure to pay the income tax and the VAT for taxable years 2001 to 2004.

Santos is the third to have been ordered arrested by the CTA under the BIR’s Run After Tax Evaders (RATE) program. The first two were Jacqueline Marzan, President of 8M Realty Corp. and Clarita De Guzman – singer Claire De La Fuente in real life – for the tax liabilities of Philippine Corinthian Liner Corp., a bus company.

“The order by the CTA for the issuance of the warrant of arrest once again clearly validates the merits of the case filed by the BIR against tax evaders,” Cabantac said.