MANILA, Philippines - A multi-level marketing firm was charged yesterday for racking up P360 million in back taxes.
The Bureau of Internal Revenue (BIR) accused Royale Business Club of evading tax payments and providing incorrect information in its annual income tax returns (ITRs) for 2011 to 2013, which violate the National Internal Revenue Code of 1997.
The BIR also filed charges against the firm’s officials – Julius Allan Nolasco, president; Angela Bautista, vice president for finance and treasurer; Imelda Pedron, assistant treasurer; and Marjorie Molina, assistant accounting manager – with the Department of Justice.
Based in West Triangle, Quezon City, Royale Business Club markets consumer products and distributes food supplements, cosmetics, pharmaceutical products and beverages.
According to the BIR, the firm received payments from banks the total income of P190.79 million in 2011, P236.38 million in 2012, and P354.6 million in 2013.
The marketing company, however, declared in its ITR gross sales of only P39.14 million in 2011, P106.69 million in 2012, and P196.68 in 2013, substantially underdeclaring sales by 387 percent or P151.64 million in 2011, by 122 percent or P129.69 million in 2012, and by 80 percent or P157.38 million in 2013.