Malampaya contractor faces P277M tax evasion raps

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed a P277.2-million tax evasion case against a contactor of the Malampaya fund infrastructure projects.

The BIR filed a criminal complaint with the Department of Justice against Bella C. Tiotangco for willful attempt to evade or defeat tax and failure to supply correct and accurate information in her tax documents.

The agency said Tiotangco is the sole owner of the BCT Trading and Construction (BTC) with registered address at Sitio Digiboy, Guadalupe, Coron, Palawan.

The company, being in the business of construction and retail sale of hardware, paints and glass, was engaged by the provincial government of Palawan to establish several infrastructure projects funded by the state earnings from the Malampaya gas fields.

According to the investigations of the BIR, Tiotangco had gross revenues of P401.48 million in 2008 but she only declared P167.77 million in her income tax return for that year.

She also underdeclared  her value added tax returns for the second, third, and fourth quarters of 2008 by P71.55 million, P123.66 million, and P123.11, respectively.

As a result of these acts, Tiotangco was assessed an aggregate deficiency tax liability of P277.21 million for 2008, including surcharges and interests.

The BIR said this amount includes P181.31 million in income tax and P95.90 million in value added tax.