Tax evasion raps filed vs shabu-linked broker, trader

MANILA, Philippines — The trader and the broker charged earlier in connection with the P6.4-billion shabu smuggling in the Bureau of Customs (BOC) have been slapped with another criminal case before the Department of Justice (DOJ).

Businessman Kenneth Dong and import broker Mark Taguba were slapped with tax evasion charges for their liabilities of P11.4 million and P850 million, respectively, in separate complaints filed by the Bureau of Internal Revenue (BIR) yesterday. 

In a press conference at the DOJ, BIR Commissioner Caesar Dulay alleged that both Dong and Taguba “willfully attempted to evade the payment of taxes by not filing their respective annual income tax returns and quarterly value added tax returns.”

In Taguba’s case, the BIR said he violated the National Internal Revenue Code by evading payment of income taxes and VAT in 2016.

Taguba earlier claimed to be a businessman engaged in the trucking business, but the BIR has found that he “was actually a ‘player’ or ‘fixer’ in the BOC who facilitated the importation into the Philippines of goods of all kinds for a certain fee.”

Records showed that Taguba initially registered with the BIR in 2009 as a one-time taxpayer but changed his taxpayer registration in September last year to single proprietorship under the business name Golden Strike Trucking Services, for which he did not pay income tax and VAT.

In 2016 alone, Taguba allegedly earned as much as P1.2 billion from facilitating imports in the BOC.

“Based on the congressional inquiries as well as data obtained from the BOC, a total of 7,458 and 7,694 container vans were brought in by Taguba’s consignees for 2016 and 2017. For 2016, he earned P1.267 billion at P170,000 per container,” Dulay explained.

Dong, on the other hand, also did not file any income tax return, VAT and percentage tax returns from 2003 to 2017, according to the BIR.

The bureau cited the businessman’s admission that he was one of Taguba’s clients.

“As a consequence of his acts and omissions, Dong evaded the payment of income tax in the total amount of P11,406,940.60, inclusive of surcharges and interests, broken down into: 2013 — P3,907,971.98 and 2016 — P7,498,968.59,” the BIR alleged.

The tax evasion charges against Taguba and Dong came after the two – along with seven others – were indicted by the DOJ last November for the P6.4-billion shabu shipment seized by the BOC in May last year.

Based on the complaint filed by the Philippine Drug Enforcement Agency, they were indicted before the Valenzuela regional trial court for violating Section 4, in relation to Section 26 (a), of Republic Act 9165 or the Comprehensive Dangerous Drugs Act.

Also indicted along with Taguba and Dong were Chen Ju Long alias “Richard Tan” or “Richard Chen,” Li Guang Feng alias “Manny Li,” Eirene Mae Tatad, Teejay Marcellana, Chen Min, Jhu Ming Jhun and Chen Rong Huan.

They are also facing separate drug smuggling charges filed by the BOC.