Tax court clears car importer of fraud

MANILA, Philippines – The Court of Tax Appeals (CTA) has dismissed the cases filed against an official of a vehicle import firm accused of declaring undervalued luxury cars imported six years ago.

In a ruling promulgated on June 8 and released Tuesday, the CTA’s Third Division dismissed the remaining three cases filed against Rodelito Biag, vice president of Viking Haulers Inc.

The Department of Justice (DOJ) filed charges against the company for supposedly violating the Tariff and Customs Code of the Philippines when it undervalued 10 luxury vehicles imported in 2009 and 2010.

The DOJ accused Biag and his co-accused, Vikings Inc. president Reynaldo Pazcoguin Jr., of undervaluing the tax declaration from P85.9 million to P17.4 million, resulting in government losses amounting to P68.5 million.

The prosecution claimed that as officials, members of the board of directors, stockholders and incorporators of Viking Haulers, Biag and Pazcoguin are liable for the alleged undervaluation.

The ruling did not cover Pazcoguin, who neither posted bail nor was arrested in connection with the case.

In its ruling, the CTA said nothing in the allegation of the prosecution showed that Biag agreed to the supposed unlawful importation of the vehicles.

“The prosecution failed to establish that the accused had knowledge of and actively participated in the underdeclaration or misdeclaration,” it added, noting that the declarations were signed by the company’s broker and lawyer.

The case against Pazcoguin remains pending before the tax court.