MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed tax evasion charges against two brothers of Jessica "Gigi" Reyes, the former chief of staff of Senator Juan Ponce Enrile.
The BIR charged MGNP Inc., its president Neal Jose Gonzales and treasurer Patrick Jean Gonzales for a total tax liability of P190.14 million, inclusive of surcharges and interests, covering taxable years 2009 to 2011.
In particular, the BIR said it filed the charges against the Reyes' brothers and their company for the following:
- willful attempt to evade or defeat income tax and value-added tax (VAT) for taxable years 2009, 2011 and 2012
- deliberate failure to file Annual Income Tax Returns (ITRs) for taxable years 2011 and 2012
- deliberate failure to file Quarterly VAT returns for taxable years 2009, 2011 and 2012 (1st, 2nd & 4th quarters)
- willful failure to supply correct and accurate information in the Annual ITR for taxable year 2009
- willful failure to supply correct and accurate information in the VAT return for taxable year 2012 (3rd quarter)
According to the BIR, the MGNP is a domestic corporation primarily engaged in the business of acquiring by purchase and disposing of any and all properties of every kind and description and wherever situated. Its business address is located at Ortigas Center, Pasig City.
Documents gathered by the agency, including those obtained from the Land Registration Authority, revealed that MGNP purchased from Premier Global Links, Ents., Inc. the Paseo de Magallanes Property on Sept. 22, 2009 for P43.2 million. But the company failed to declare this amount of P43.2M in its income tax return for 2009.
On June 13, 2012, MGNP sold the said property for P81.72 million to Polyfoam RCG International, and gained a profit of P38.52 million. However, the company also failed to report this as part of its gross income when it also failed to file its Annual ITR and VAT returns (1st, 2nd & 4th quarters) for taxable year 2012.
The MGNP also purchased a parcel of land from C.J. Yulo and Sons, Inc. on Feb. 01, 2011 for P150 million. But the company failed to declare this as income when it also failed to file its ITR and VAT returns for taxable year 2011.