MANILA, Philippines - The Department of Justice (DOJ) has found probable cause to indict a coffee concessionaire of the Philippine Amusement and Gaming Corp. (Pagcor) for tax evasion.
In a 10-page resolution released yesterday, the DOJ found Figaro coffee operator Carlota Cristi Manalo-Tan liable for unpaid income taxes worth over P59 million in 2003 and 2004.
The DOJ investigating panel chaired by Senior Assistant State Prosecutor Rosanne Balauag cited “overwhelming evidence†showing the businesswoman, whose firm supplied P700 million worth of coffee to state-run casinos, had under-declared her income.
“We find that there is prima facie evidence that respondent Tan willfully failed to supply the correct and accurate information in her income tax returns (ITRs) for the years 2003 and 2004,†read the DOJ resolution.
The DOJ panel said Tan violated Section 254 and Section 255 of the National Internal Revenue Code as alleged in the complaint filed by the Bureau of Internal Revenue (BIR) for not supplying the correct income from sales of her firm, Promolabels Specialty Shop.
Preliminary investigation showed Tan earned P36.72 million in 2003 and P70.24 million in 2004 from her dealings with Pagcor.
But she only declared P16.06 million and P25.82 million in her ITRs for 2003 and 2004, respectively.
Tan denied the charges and claimed she had no intention to under-declare her income. She said she was not aware of the details of the accounting entries nor does she have control or possession of receipts or invoices relating to the specific branches or operations run by her managers.
But the DOJ panel dismissed her denial, citing records submitted by the BIR.
“The substantial amount of under-declared income cannot easily be ignored. It is true that the intent to defraud of the respondent cannot be shown, as fraud is a state of mind, but such intent became evident when the under-declaration is of a substantial amount,†the prosecutors said.
On Tan’s claim that she relied on the information of her managers and auditors, the prosecutor said: “She, as a taxpayer and business owner, has the duty to verify the information given to her by her employees. The defense raised by respondent Tan is mere denial that is best ventilated in a full-blown trial.â€
It was not the first case filed against Tan.
In July 2012, a case was also filed before the Office of the Ombudsman against former Pagcor officials, chairman Efraim Genuino, president Rafael Francisco and senior vice president Rene Figueroa and Tan over the alleged overpriced P258-million bill for coffee.
Tan is the wife of Johnny Tan, a known friend of Genuino and the second nominee of the Bida party-list group identified with the former Pagcor chief.