Tax evasion raps filed vs Pagcor coffee supplier

MANILA, Philippines - The government yesterday filed charges of tax evasion against the coffee shop concessionaire operating at the Philippine Amusement and Gaming Corp. (Pagcor).

The Bureau of Internal Revenue (BIR) filed the charges against Carlota Cristi Manalo-Tan before the Department of Justice (DOJ).

Tan reportedly sold coffee to Pagcor as the sole proprietor of Carmona Race Trace and Promolabels Speciality Shop.

The company operated the Figaro Coffee Shop in the casinos of Pagcor, the BIR said.

BIR Commissioner Kim Henares said Tan’s company did not declare the right amount of taxes for 2003 and 2004.

Henares said Tan’s coffee operations in Pagcor generated sales of P106.97 million in 2003 and 2004 but declared only P41.88 million in sales in tax returns.

Tan had earned substantial income from her dealings with Pagcor, earning as much as P36.72 million in 2003 and P70.24 million in 2004 or a total of P106.96 million, Henares pointed out.

“In 2003, she (Tan) only reported P16.06 million in her return and a measly P25.82 million in 2004, or a total of P41.88 million,” Henares said.

The BIR is also looking into Tan’s amended returns.

Tan amended her income returns for 2001, 2002, 2005, 2007 and 2010, which are now subject to validation.

“If we find irregularities in her amended returns, more cases will be filed against her,” Henares said.

On the other hand, Tan, through her lawyer Lorna Kapunan, said they were expecting the tax evasion charges.

Kapunan said Tan is ready to answer the charges.

“As in any other case filed by the BIR, this remains subject to further clarification and review,” Kapunan said.

Kapunan explained Tan supplied “specialty coffee” to Pagcor, which was subsidized by casino patrons themselves since the payment came from five percent of Pagcor’s revenues.

“There was no attempt to overcharge the coffee,” Kapunan told ANC.

“They (Pagcor) are barking at the wrong tree,” she said.

Kapunan also claimed Tan had filed income tax in the questioned period of years 2003 and 2004 for her company.

She said the supposed P59-million estimated income tax liability remains highly disputable and should be subject to further clarification and review.

Pagcor, for its part, supported the filing of tax evasion charges against Tan.

Jay Santiago, vice president of Pagcor’s corporate and legal services department, told ANC that there is an apparent inconsistency in Tan’s declared tax payments and the actual payment she received from Pagcor. – With Helen Flores