The Bureau of Internal Revenue (BIR) filed criminal charges against Royale Era, a production company owned by the family with Eddie Gutierrez as president, Rama as managing director and Ruffa as treasurer.
According to the BIR, it is filing charges against the company, with the Gutierrezes as respondents, for "willful failure to file value-added tax returns and to pay value-added tax," or VAT.
BIR Commissioner Jose Mario Buñag said yesterday that the bureau had issued a letter of authority against the company for the examination of its books of accounts and other accounting records covering the taxable year 2004 and unspecified prior years.
However, Royale Era did not open its books and failed to present its records to BIR auditors.
Buñag also said Royale Era has been producing films since 1996 but did not register at the BIR until 1998 or pay the registration fees as required by law.
As a result, Buñag said the Gutierrezes were being charged with "unlawful pursuit of business," non-payment of fees and charges as well as failure to file VAT returns and pay VAT arrears.
The BIR said that since Royale Era’s gross sales were estimated to have exceeded P550,000 for years 2003 and 2004, it should have registered as a business entity subject to VAT.
"However, the company purposely registered as a non-VAT percentage type of business despite knowledge of the fact that it should have updated its business registration," the BIR charged.
"As a result of fraudulent acts and violations, the government was unduly deprived of taxes in the amount of P3.2 million representing income tax and VAT for years 2003 and 2004," the BIR said.
According to the BIR, the violations constituted "willful intent to evade the payment of taxes due the government."
"It’s not the amount of tax deficiency that matters," Buñag said. "It’s the message that we want to strongly deliver." — Des Ferriols, Jose Rodel Clapano