Two more delinquent corporate taxpayers charged with willful failure to pay tax

Two more delinquent corporate taxpayers charged with willful failure to pay tax

The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against two (2) delinquent corporate taxpayers from Quezon City and Pasig City, together with their responsible officers, for Willful Failure to Pay Taxes pursuant to Section 255 of the NationalInternal Revenue Code of 1997, as amended (Tax Code).

Charged was ALBEVA KONSTRUKT & DEVELOPMENT CORPORATION (AKDC), together with its President ALBERTO R. MACARAEG, SR. and Treasurer EVALYN A. MACARAEG. AKDC is a domestic corporation engaged in general construction business, including the constructing, enlarging, repairing, developing or engaging in any work upon buildings, houses and condominium, roads, plants, bridges, airfields, piers, waterworks, railroads and other structures. Itsregistered address is at 17 Mabuhay corner Chronicle Street, West Triangle, Quezon City.

AKDC and its two (2) responsible corporate officers were also sued for deficiency taxes for taxable year 2007 in the aggregate amount of P5.16 million, inclusive of surcharges and interests, broken down into Income Tax of P3.73 million and Value Added Tax of P1.43 million.

Also charged in a separate complaint was THE POWER GENERATION OF THE PHILIPPINES, INC., (POWERGEN), including its responsible corporate officers EDUARDO JOSE I. ALINO and LESTER C. VALDES, President and Comptroller, respectively. POWERGEN is a domestic corporation whose primary purpose is to generate power. Its registered address is at S-702 The Goldloop Tower, Amber Avenue, Ortigas Center, Pasig City.

POWERGEN and its two (2) responsible corporate officers were likewise sued for deficiency taxes for taxable year 2006 in the aggregate amount of P30.83million, inclusive of surcharges and interests, broken down as follows: Income Tax - P22.84 million; and Value Added Tax - P7.99 million.

BIR records of investigation showed that in spite of the service and receipt of the requisite notices, both AKDC and POWERGEN failed to present their books of accounts and other related accounting records for examination. They were also served the corresponding Preliminary Assessment Notice (PAN), Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) but failed to protest said assessments, hence making the same final, executory, unappealable and demandable.

The subsequent issuance of the Preliminary Collection Letter, Final Collection Notice Before Seizure, Warrant of Garnishment, and Demand Before Suit proved useless as the said tax assessments remained unpaid.

The obstinate failure and continued refusal of both AKDC and POWERGEN to pay their long overdue deficiency tax assessments, despite repeated demands, were construed as willful failure to pay the taxes due to the government.

The cases against ALBEVA KONSTRUKT & DEVELOPMENT CORPORATION and THE POWER GENERATION OF THE PHILIPPINES, INC., including their responsible corporate officers, are the 206th and 207th , respectively, filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. They are likewise RATE cases of Revenue Region No. 7, Quezon City.

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Fruits and Vegetable Trader rapped for tax evasion

Fruits and Vegetable Trader rapped for tax evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ALEJANDRINO VALENCIA YU (YU) for Willful Attempt to Evade or Defeat Tax and Deliberate Failure to Supply Correct and Accurate Information in his Income Tax Returns (ITRs) for taxable years2009, 2010, 2011 and 2012, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Respondent YU, sole proprietor of FRESHGOLD MARKETING, is engaged in the sale of perishable goods, particularly fruits and vegetables, to various groceries and supermarkets in Metro Manila with business addresses at 3922 Dangal St., Sta. Mesa, Manila and 1 P. Capalad St., Valenzuela City.

The case against YU stemmed from a preliminary investigation conducted by the BIR on his alleged perpetration of tax evasion schemes.

Replies to Access Letters sent by investigators to YU’s customers – Alabang Supermarket Corp., CitySuper Incorporated, DOLE Philippines, Inc., DSG Sons Group, Inc. (Gaisano), Grand Union Supermarket, Inc., Hi-Top Supermarket, Inc., Diamond Hotel Philippines, The Landmark, Inc., and Unimart, Inc. – disclosed that YU received income payments amounting to P174.32 million for taxable years 2009 to 2012.

Compared to his gross revenue declarations in his ITRs of P6.61 million in 2009, P4.14 million in 2010, P19.57 million in 2011 and P14.0 million in 2012, he substantially underdeclared his sales/income by P25.97 million or 393.02% in 2009, by P39.84 million or 962.96% in 2010, by P31.20 million or 159.47% in 2011, and by P33.01 million or 235.79% in 2012.

As a consequence of his acts and omissions, YU was assessed an aggregate deficiency income tax liability for taxable years 2009 to 2012 in the amount of P82.40 million, inclusive of surcharges and interests, broken down as follows: 2009 - P19.01 million; 2010 - P26.68 million; 2011 - P18.83 million; and 2012 - P17.88 million.

The case against ALEJANDRINO VALENCIA YU is the 205th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

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DOF, BOC bare radical data transparency campaign

DOF, BOC bare radical data transparency campaign

Customs ng Bayan and Open Data launched today

The Department of Finance and Bureau of Customs launch today the Customs ng Bayan website, a portal for data and information on customs importations extracted from BOC’s Electronic-to-Mobile (e2m) system.

Customs ng Bayan (CNB) will feature regular releases of trade activity in each of the 17 main collection district of customs, including the value and volume of goods imported and customs duties collected per port.

It currently contains Customs import entries for December 2013 and reports on relief goods imported last year in the wake of Typhoon Yolanda, specifically those processed at the One Stop Shops at the Port of Mactan and the Port of NAIA.

The website will eventually feature reports on certain sensitive commodities such as motor vehicle imports and rice.

“Even before the passage of the Freedom of Information Law, we find value in crowdsourcing the anti-corruption effort through a radical change in our data transparency policies for public accountability. Empowering the people through information is one of the major initiatives of the President’s Customs Reform Agenda,” Finance Secretary Cesar Purisima said.

“By opening the books of an agency that many Filipinos believe is the most corrupt in government, we invite the public to join us, through our Tax Watch and Customs ng Bayan campaigns, in our war against smuggling that defrauds the government of billions of pesos every year,” Customs Commissioner John Sevilla added.

The release of Customs ng Bayan coincides with the beginning of the Bureau’s reforms concerning transparency of data and accountability of its operations.

This week, the DOF also launches its first DOF-BOC Tax Watch advertisement featuring top importers of motor vehicles and the customs duties they paid on these imports. Just last week Customs has published its first monthly list of importations in the Philippines, starting with December 2013 import entries.

The DOF and BOC has also worked with Open Data Team to publish more Customs information through the government’s Open Data Portal (, to be officially launched at the Good Governance Summit by the Commissioner of Customs.

The public may report any specific questionable transaction via the improved website

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[INFOGRAPIC] Who are the top car importers for 2012?

Click the title to view the Infographic:


Who are the top car importers for 2012?

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The Republic of the Philippines Issues New 10-Year USD-Denominated Global Bonds and has Announced the Results of its Invitatio fot he Offers ro Sell Existing US Dollar Denominated Bonds for Cash


 The Republic of the Philippines (the “Republic”) successfully returned to the international capital markets with its offering of USD 1.5 billion of 10-year USD Global Bonds. The new issue of Global Bonds occurred concurrently with a 1-day Tender Offer for 11 series of USD bonds maturing between 2015 and 2025.

This issue of the Global Bonds marks the first international USD offering from the Republic since January 2012 and the Republic’s first ever international investment-grade issuance, achieving ratings of Baa3 from Moody’s Investor Services, BBB- from Standard & Poor’s, and BBB- from Fitch Ratings.

The newly-issued Global Bonds were priced at par with a coupon of 4.20%.

Order books were in excess of USD 13.5 billionfrom about 500 investors. By geographical allocation, 28% came from Asia, 53% from the U.S. and 19% from Europe. By investor type, 71% was allocated to fund managers, 24% to banks, and 5% to insurers.

Finance Secretary Cesar V. Purisima said, “We welcome this opportunity for the Republic to revisit the international markets, to herald its investment-grade status and establish a reference for the country’s credit. This exercise again demonstrates sustained government efforts to reduce the country’s debt burden and to channel more resources into productive endeavors.”

Proceeds of the issuance will be used to fund the Republic’s switch and tender offer. The Republic may also use the proceeds for general purposes, including budgetary support.

The tender offer exercise was primarily targeted at existing bondholders to switch into the new Global Bonds. The amount of bonds tendered equaled a notional value of USD 2.6 billion, and the Republic accepted USD 870 million of offers. This liability management transaction also marks the first intraday switch tender offer in Asia, evidencing the Republic’s sophistication as a sovereign issuer.

“As with our previous transactions, this exercise is in line with the government’s overall objectives of prudent and proactive liability management, and resulted in interest-cost savings as well as extended the average debt maturity profile of the Philippines.  The result further bolstered the strength of the government’s financial position,” commented Treasurer Rosalia de Leon.

Deutsche Bank, HSBC, and Standard Chartered Bank served as joint global coordinators and dealer managers for the transaction. ANZ, Citi, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, and Standard Chartered Bank acted as joint bookrunners.

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