P68.51-B tax raps filed vs traders in helicopter deal

MANILA, Philippines - The Bureau of Internal Revenue (BIR) yesterday filed tax evasion cases involving P68.51 billion against a company and a businessman in the alleged anomalous sale of second-hand helicopters to the Philippine National Police (PNP) during the administration of former President Gloria Macapagal-Arroyo.

Charged were Manila Aerospace Products Trading (MAPTRA) Corp. and its president, Hilario de Vera. The businessman failed to register as a business entity and conducted business without permit.

The company and De Vera were also charged with violations of tax laws for failing to declare value-added tax (VAT) and income tax from 2009 to 2010.

MAPTRA is likewise facing charges for issuing invalid receipts.

The firm figured prominently in the Senate inquiry on the alleged sale of two second-hand Robinson R44 Raven I helicopters to the PNP priced as brand-new in 2009.

MAPTRA Corp. served as the marketing agent of Lionair Inc., the exclusive distributor of Robinson helicopters in the country.

Former first gentleman Jose Miguel Arroyo and 20 others last month were charged with graft by the Ombudsman in connection with the helicopter sale.

Arroyo was allegedly the owner of two of the three helicopters sold for P105 billion to the PNP.

The Ombudsman noted the PNP lost P34.632 million from the sale, of which only one helicopter was brand new, while the two were allegedly used by now Pampanga Rep. Arroyo during her campaign for the 2004 presidential elections.  

The BIR said MAPTRA owed the government P68.51 billion to P55.5 billion in income taxes and P13.01 billion in VAT.

“On the basis of the supply contract, supplemental supply contract, disbursement vouchers and official receipts secured by the BIR from the Commission on Audit-PNP, investigators established that MAPTRA received from PNP P49.68 million in November 2009 and another P49.68 million in March 2010, or a total of P99.36 million, net of taxes, for the sale of one fully equipped and two standard Light Police Operational helicopters,” BIR said in a statement.

“Investigators likewise discovered that MAPTRA Corp. only registered with the BIR on Oct. 21, 2011 despite the fact that it was incorporated in June 2009 and despite having sold three helicopters to the PNP in July 2009,” the agency added.

“Having failed to register with the BIR, MAPTRA Corp. failed to pay the annual registration fee required by law, thus liable for unlawful pursuit of business.”

The BIR said the tax identification number used by MAPTRA Corp. for the sale of the helicopters “was that of De Vera and that the receipts issued by the company belonged to another firm with almost the same name – Manila Aerospace Products Trading (MAPTRA).”

“MAPTRA Corporation is different from MAPTRA. MAPTRA Corp. is involved in the chopper deal, while MAPTRA was involved on the sale of parts and services,” BIR Deputy Commissioner Estela Sales said in a text message.

De Vera’s case was based on his income from MAPTRA in 2009.

The BIR said De Vera understated his income in 2009 to only P9.56 million despite earning P20.56 million from sales to various companies.

“On the basis of documents filed with the BIR by his customers, particularly BIR Form 2307 (certificate of creditable tax withheld at source), investigators discovered that De Vera received income payments amounting to P20.56 million in 2009 from ABS-CBN (P17.07 million), Ayala Aviation Corp. (P65,296.61), Crystal Sugar (P0.24 million), KMC Realty Corp. (P0.30 million), SM Land, Inc. (P0.54 million), Star Borne Chartering Corp. (P1.12 million), Fieldtech Asia, Inc. (P1.19 million), and South East Asia Airlines, Inc. (P45,357.14),” it said.

“A comparison of the total income payments De Vera received as abovementioned with the sales he declared in his 2009 (income tax return) amounting to P9.56 million revealed an under declaration of sales of more than 30 percent. Under the Tax Code, an under declaration of more than 30 percent is substantial and constitutes prima facie evidence of fraud tantamount to tax evasion.”

As a result, the BITaR is now asking De Vera to pay P7.02 million in income taxes and P2.81 million in VAT.

Sought for comment, De Vera told The STAR he was not remiss in his duty to file taxes.

“When you do business with the government and the government buys something from you, it already withholds the taxes due,” De Vera said in a phone interview.

BIR Commissioner Kim Henares, however, said De Vera should have still filed returns even if “it was true that taxes were withheld.”

De Vera said he would face the charges against him.

The cases were filed under the BIR’s Run After Tax Evaders program, which started in 2005 and was revived when President Aquino took over in 2010.

Cases filed yesterday were the 113th and 114th filed so far under the Aquino administration.

Tax evasion raps vs BuCor caterer

In another case, the BIR also filed a criminal complaint against Ziegfried Loo Tian, sole proprietor of Golden Taste Food Services & General Merchandising contracted by the Bureau of Corrections from Aug. 17, 2010 to Jan. 16, 2012 to cater food to inmates.

Tian rendered catering services for inmates at the Correctional Institution for Women in Mandaluyong and Davao, Reception and Diagnostic Center, Muntinlupa Juvenile and Training Center, and the Medium and Minimum Security Compounds of the New Bilibid Prison in Muntinlupa City.

Based on a BuCor certification, Tian received a total payment of P183.23 million in 2010 and P185.48 million in 2011 from the corrections bureau.

“Records of the BIR showed that Tian filed his ITR for taxable year 2010 but failed to file the same return for taxable year 2011. His 2010 ITR showed no amount or figure for purposes of filing a valid return except the words ‘Pls. see Attached.’ However, no financial statements and other pertinent papers were attached to the said return,” the BIR said.

The same tax evasion case was also found on the VAT returns Tian filed during the same period, the bureau said.