BIR files P1.9-billion involving tax evasion cases

MANILA, Philippines - The Bureau of Internal Revenue (BIR) filed P1.95 billion worth of tax evasion cases against a doctor, a lawyer and his accountant, and a packaging container manufacturer at the Department of Justice yesterday.

BIR Commissioner Kim Henares filed the charges at the Justice department against Jedvam Manufacturing Corp. and its officers led by its president Henry Chua Yu.

The BIR said the manufacturing firm failed to pay taxes in 2007 and 2008 even after the BIR had demanded payment.

Jedvam, a manufacturer of packaging containers such as papers and corrugated boards including yarn, plastic resins among others, did not respond to several assessment notices issued by the BIR.

In conducting its investigation, the BIR sought data from the Bureau of Import Services and the Bureau of Customs on the company’s activities.

The agency found out that Jedvam imported a total of P4.99 billion of resins from 2007 to 2008.

The BIR said that based on the evidence it gathered, Jedvam had a tax deficiency of P1.93 billion for 2007 and 2008.

The BIR also filed charges against Salvador Gundayao Austria, a medical doctor, for violating Sections 254 and 255 of the National Internal Revenue Code.

According to the BIR, Austria owns several real properties in Olongapo City and along Tomas Morato in Quezon City and buys, sells and leases properties.

However, the BIR said Austria is not registered as a VAT taxpayer.

Based on the BIR’s investigation, Austria leased a property in Quezon City to HUBB Manufacturing Inc. for P180,000 a month from 1999 to 2009.

However, the BIR said Austria did not file any income tax returns for 2002, 2003 and 2005 nor did he file value-added tax returns from 1999 to 2005.

The BIR computed Austria’s total tax deficiency at P13.69 million, including surcharge and interest, from 1999 to 2005.

The BIR also filed tax charges against Abelardo Luzano, a lawyer who allegedly violated Sections 254 and 255 of the NIRC in 2009 and 2010.

According to the BIR, Luzano’s clients included big banks such as the Bank of Philippine Islands, Banco de Oro Unibank Inc., Asia United Bank Corp. and the Hong Kong and Shanghai Banking Corp. for 2009 and 2010.

Data gathered by the BIR showed that the banks paid Luzano at least P14.65 million for his services in the two-year period but he declared only P8.09 million.

Luzano also allegedly did not pay value-added tax for 2009 and in the first two quarters of 2010.

According to BIR’s estimates, Luzano’s total deficiency tax for 2009 and 2010 is at P6.63 million including surcharge and interest.

The BIR also charged Evangeline Padilla-Kho, a certified public accountant that certified Luzano’s financial statements for 2009 and 2010.

In its case, the BIR alleged that Kho knew of the existence of income payments from the banks but still certified Luzano’s financial statements.