MANILA, Philippines - The Bureau of Internal Revenue (BIR) has filed a complaint for tax evasion against a son of former senator Freddie Webb and another family member.
The BIR filed the complaint before the Department of Justice (DOJ) against Webb’s son Fritz and Katherine Webb as president and treasurer, respectively, of Basement Salon Corp. for allegedly failing to issue receipts to its customers.
BIR Commissioner Kim Henares said the BIR had placed Basement Salon under surveillance for several days to establish whether it was complying with the invoicing requirements mandated by the Tax Code.
Basement Salon, located at the second level of Power Plant Mall at Rockwell Center in Makati City, caters to the middle and upper classes of society.
Last Nov. 24, BIR investigators confiscated 25 job order slips and one booklet of official receipts, which Henares said did not match.
“The investigators found that out of the 25 job order slips that were issued on Nov. 24, 2011, only two were issued the corresponding official receipts - one to an unnamed customer in the amount of P1,210 and the other to a certain Chini Salonga for P6,000,” she said.
As such, the BIR said at least 23 transactions were not issued corresponding receipts.
The BIR said the respondents have been issuing receipts only upon demand of their customers “despite the mandatory requirement of the law requiring persons subject to an internal revenue tax to issue receipts or sales or commercial invoices.”
The case against the Webbs is the 84th case filed under the Run After Tax Evaders (RATE) program of the BIR.
The BIR also filed a criminal complaint with the DOJ against Great Wall Promotionals Co., a Zambales-based company.
According to the BIR, the company, owned by businessmen Carlito Pancho, Flordeliza Casimiro, George Co and Roberto Co, willfully attempted to evade or defeat payment of taxes and failed to supply correct and accurate information in its income tax return (ITR) for taxable year 2008.
The company reported total sales of P1.47 million in its ITR and quarterly value added tax (VAT) returns for taxable year 2008.
However, the BIR found out that the company received income payment of P266.48 million from Jollibee Foods Corp. that year.
As such, for taxable year 2008, the BIR said the company has a total tax deficiency of P240.31 million, inclusive of surcharges and interest.
Of the amount, the company owes P173.81 million in income tax and P66.50 million in VAT.