BIR assistant commissioner, 4 others charged with graft

MANILA, Philippines - For allegedly issuing and selling fraudulent tax credit certificates (TCC), the Office of the Ombudsman ordered the filing of graft and estafa charges yesterday against Bureau of Internal Revenue (BIR) Assistant Commissioner Lirio A. Cabsaba.

Four other BIR officials identified as Head Revenue Executive Assistant Carolina P. Pineda; Angelina L. Gatchalian of the Collection Programs Division; Executive Director Ernesto Q. Hiansen; and Tax Credit Certificate Issuance and Application Division (TCCIAD) chief Grace Flaminiano will face the same charges.

Also named respondents to the cases are tax specialist Imelda Ribas and Clerk III Emelita Tizon from the One Stop Processing Center of the Department of Finance (DOF) and private individuals May B. Reyes and Fidel Najera.

The case against them stemmed from a complaint filed by the National Bureau of Investigation represented by former director Nestor M. Mantaring.

Records show that the documents which were used to process the issuances of the TCCs were all falsified which were to be used to consummate the sale of the similarly falsified TCCs to private corporations.

The falsification was allegedly used as an instrument to dupe the buyers of the TCCs to part with their money which means that “the complex crime of estafa through falsification of public documents was clearly committed.”

Graft probers said the fraudulent sale of the TCCs definitely caused undue injury to the government since the supposed revenue that would have been generated by the tax liabilities of the private corporations, were for some time, denied to the government coffers.

It said the perpetration of this injurious act was made possible through the separate but concerted efforts of Pineda, Reyes, Najera and Cabsaba.

As to Cabsaba, it was her approval of the transfer application of the TCCs that was the final act that enabled the perfection of the fraudulent transaction.

Allegedly, her hasty approval on the same day, in itself, manifested a semblance of irregularity as it was Pineda who personally and actively followed up the processing of the transfer application.

“The injury sustained by the government could likewise be traced through the gross negligence of OSS DOF officials, Hiansen, Flaminiano, Ribas and Tizon for they certified that the fake TCCs were authentic and recommended the approval of their transfer application,” graft probers said.

In a 50-page Resolution, the Office of the Ombudsman said there exists probable cause to indict Pineda, Reyes and Najera for estafa while two counts for violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act were ordered filed against Cabsaba, Pineda, Reyes and Najera.

The Office of the Ombudsman explained that tax credit is a rebate of refund of import taxes and duties which a BOI (Board of Investments) registered enterprise, firm or manufacturer has paid beforehand to the government on the raw materials, supplies and semi manufactured products it has earlier imported to the country that will be used in the manufacture, processing or production of its finished product which will be exported later abroad.