MANILA, Philippines - The Bureau of Internal Revenue (BIR) filed yesterday tax evasion cases against two manufacturing firms.
In a filing at the Department of Justice (DOJ), BIR Commissioner Kim Henares charged that Vintage Fashion Inc. and Best Seller Manufacturing Corp. owe the government a total of P444.8 million combined tax liabilities.
Henares said Vintage Fashion has tax liabilities of P410.6 million for failing to pay income tax for the years 1995, 1996, 2000, 2001, 2002 and 2003.
The filing of the case happened after an investigation by BIR examiners.
The BIR first issued a letter of authority to Vintage Fashion in 2004 to examine its books. In 2005, the agency issued several more requests for the company to present its records but this was ignored.
Vintage Fashion was then issued a preliminary assessment notice in February 2006 for the tax payment deficiencies for the five years, an assessment which the company was unable to dispute.
In 2006, the agency filed a final assessment notice together with a formal demand letter. However, the company still failed to settle its obligations to the BIR or the dispute the assessment.
The BIR also filed tax evasion cases against Best Seller Manufacturing Corp. and its owner, Charlie Yao.
The BIR alleged that the company evaded taxes in 2006 and 2007 and failed to supply the bureau with correct and accurate information.
According to the BIR, Best Seller earned from ChowKing, Olympian Rubber Products Co. Inc., Universal Robina Corp. and Monde M. Y. San Corp. the amount of P23.7 million but underdeclared its gross receipts for the two years.
The BIR said Best Seller declared gross receipts of only P1.9 million and P3.6 million for taxable years 2006 and 2007, respectively, but was found to have underdeclared its sales by P15.2 million and P20.1 million, respectively.
Based on the BIR’s computation, the company owes the agency a total of P34.2 million including surcharge and interest for 2006 and 2007.
Of the amount, P25.62 million represents income tax and P8.6 million represents value added tax.