BIR files tax evasion suit vs designer items retailer

MANILA, Philippines - The Bureau of Internal Revenue, the government’s main revenue agency, filed yesterday tax evasion cases against designer items retailer Genevieve Gozum.

In a filing before the Department of Justice (DOJ) yesterday, the BIR charged that Gozum-owned boutiques such as YRYS owe the government at least P226.9 million in taxes accumulated from 2006 to 2010.

BIR Deputy Commissioner Estela Sales said Globe Mallow International Enterprises Corp., which runs the Genevieve Gozum boutiques allegedly bloated their expenses.

Sales said the company claimed false input value added tax (VAT), thereby underdeclaring its income and VAT.

According to the BIR investigation, GMIEC claimed to have bought P223.42 million from Fine & Fancy Fabrics Center.

However, the supplier denied the claims of the company.

Under the value added tax system, the BIR can track purchases between buyers and their suppliers. Through this, the BIR flagged the discrepancy in the submissions of the two companies.

Fine & Fancy Fabrics Center denied having any business dealings with GMIEC.

According to the BIR’s assessment, GMIEC has total tax liability at P226.9 million, including surcharge and interest, that can be broken down to P60.69 million in VAT and P166.3 million in income tax covering the years 2006-2010.

The BIR wants GMIEC charged for violating sections 254 and 255 of the National Internal Revenue Code or for evading taxes and failing to supply the BIR with correct and accurate information and its responsible officers, Genoveva M. Gozum and Gene M. Gozum, under section 256 of the NIRC.

Similarly, the BIR filed a tax evasion case against Joycee Ann Jona Gapasin de Josep, owner of the Harrison Plaza-based Bloomers Petshop and Clinic.

The BIR is charging the company for unauthorized printing of its ‘official’ receipts and commercial invoices without authority from the tax agency and for failing to issue duly registered receipts.

During an ocular inspection, the BIR discovered that Bloomers Petshop and Clinic has been issuing supposed official receipts that have the same serial numbers.

Furthermore, Sales said the BIR discovered that booklet of receipts was not registered with the BIR and its printing was not authorized by the BIR.