BIR charges transport company for evading payment of common carriers’ tax

BIR charges transport company for evading payment of common carriers’ tax


The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against GERMAN ESPIRITU LINER, INC. (GERMAN ESPIRITU), its President CECILIO GERMAN and Secretary/Treasurer ERLINDA GERMAN for willful attempt to evade or defeat taxes, and deliberate failure tofile Quarterly Percentage Tax Returns (PTRs) for taxable years 2010, 2011 and 2012, in violation of Sections 254 and 255 in relation to Sections 117 and 128 of the National Internal Revenue Code of 1997, as amended (Tax Code).

GERMAN ESPIRITU is a corporation duly-registered with the Securities and Exchange Commission organized primarily for the purpose of rendering transportation services for the public. Its office address is at URESA Subdivision, Wakas, Bocaue, Bulacan. GERMAN ESPIRITU is a grantee of Certificates of Public Convenience and operates as a public transport for passengers along the route of Bulacan (Bulacan) to Cubao (Quezon City) and along the route of Bulacan (Bulacan) to Divisoria (Manila).

GERMAN ESPIRITU initially filed PTRs and paid percentage taxes (PT). However, for taxable years 2010, 2011 and 2012, the bus company did not file PTRs and did not pay PT. Instead, it filed VAT returns and paid the corresponding VAT Payable. Moreover, GERMAN ESPIRITU left blank the space provided for “LINE OF BUSINESS” in all its VAT returns filed with the BIR.

By repeatedly and deliberately not disclosing itself as engaged in the business of transport of passengers in its VAT returns filed with the BIR, GERMAN ESPIRITU took advantage of the creditable VAT system as a scheme to evade the payment of correct internal revenue taxes wherein it deducts Input VAT (from purchases) from its Output VAT (from gross receipts) resulting to payment of nominal and insignificant amounts of VAT instead of the mandated percentage tax. Under Section 117 of the Tax Code, persons (includes juridical persons) who transport passengers for hire and other domestic carriers by land for the transport of passengers are required to pay percentage tax equivalent to three percent (3%) of their quarterly gross receipts.

As a result of GERMAN ESPIRITU’s fraudulent and willful acts, it evaded its obligation to pay proper internal revenue taxes in the total amount ofP4.20 million, inclusive of surcharges and interests, summarized as follows: 2010 – P1.11 million; 2011 - P1.63 million; and 2012 – P1.46 million.

The case against GERMAN ESPIRITU LINER, INC., its President CECILIO GERMAN and Secretary/Treasurer ERLINDA GERMAN is the 225th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of Revenue Region No. 5, Caloocan City.

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Another Malampaya Fund Infrastructure Projects Contractor rapped for tax evasion

Another Malampaya Fund Infrastructure Projects Contractor rapped for tax evasion

 

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against AGERICO L. BANZON (BANZON) for Willful Attempt to Evade or Defeat Tax for taxable years 2008, 2009 and 2010, Deliberate Failure to Supply Correct and Accurate Information in his AnnualIncome Tax Return (ITR) for taxable year 2008, Willful Failure to File Annual ITRs for taxable years 2009 and 2010, and Willful Failure to File Value Added Tax (VAT) Returns for taxable years 2008, 2009 and 2010, all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Respondent BANZON is the sole proprietor of BANZ BUILT CONSTRUCTION (BANZ BUILT) with registered address at Ignacio Street, San Jose, Puerto Princesa City, Palawan.

Being in the business of construction, BANZ BUILT was engaged by the Provincial Government of Palawan (PGP) to construct several infrastructure projects funded by Malampaya Funds during taxable years 2008, 2009 and 2010.

Documents gathered by investigators, including checks issued by PGP, official receipts issued by BANZ BUILT, disbursement vouchers certified by the Commission on Audit (COA), certification of income payments by PGP to BANZ BUILT issued by PGP OIC-Assistant Provincial Accountant Arlene N. Sabellina, however, disclosed that BANZON received income payments from PGP amounting to P17.79 million in 2008, P32.79 million in 2009, and P12.00 million in 2010.

Investigation also disclosed that despite earning a substantial amount of income, BANZON deliberately under-declared his gross receipts by P17.51 million or 6,262.25% in 2008 by declaring in his ITR a measly-sum of P279,646.00 as gross revenues. He likewise failed to file his ITRs for taxable years 2009 and 2010 as well as his VAT returns for the entire years of 2008, 2009 and 2010 and thus, failed to declare the corresponding income / gross revenues for the said years.

  As a consequence of his acts and omissions, BANZON was assessed an aggregate deficiency tax liability of P62.46 million, inclusive of surcharges and interests, broken down as follows: Income Tax – P45.63 million; and VAT – P16.83 million.

The case against AGERICO L. BANZON is the 222nd filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.

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DOF-RIPS gets OMB nod on forfeiture of unexplained wealth, retirement benefits of deceased customs official

DOF-RIPS gets OMB nod on forfeiture of unexplained wealth,

retirement benefits of deceased customs official

Carag: The best inheritance is not wealth but integrity

 

Dual breakthroughs in an eight-year old complaint against PRUDENCIO LOPEZ MACARANAS, Customs Operations Officer V of the Bureau of Customs (BOC), vindicate anew the Revenue Integrity Protection Service (RIPS) in its relentless fight against corruption.

The Office of the Ombudsman issued its Resolution dated 20 June 2013 which directed the filing of a Petition for Forfeiture under Section 2, RA 1379 against Macaranas with the Regional Trial Court of Parañaque City.

Official had excessive wealth of P22.8m despite only P1.7m salary

Based on Macaranas’s Statements of Assets, Liabilities, and Net Worth (SALNs) and other supporting records adduced by RIPS, the Office of the Ombudsman figured that since his entry to the Bureau of Customs (BOC) on June 11, 1976 until December 2004, Macaranas had “excess acquisitions amounting to P22,871,920.59”, the bulk of which pertained to an extravagant collection of real estate, motor vehicles, jewelries, among other properties. Incidentally, it did not escape the scrutiny of the Office of the Ombudsman that out of Macaranas’s net worth of P26,101,352.00 during the said period, RIPS evidence showed that Macaranas’s undeclared assets amounted to a total of P4,396,352.00.

Macaranas’s Service Record indicated that from 1974 to 2004, he only earned P1,680,164.98 as a BOC official. Conversely, tax records of the spouses Macaranas confirmed that their income from other lawful sources was barely P881,943.00, while earnings from their purported family business, Steadfast Air-Sea International, Inc., were summed at Php 667,323.43, as culled from its financial records for taxable years 1988, 1989, 1992, 1993, 1996 to 2004.

“The Ombudsman’s Resolution directing the filing of the forfeiture case on Macaranas’s unexplained wealth sends an unequivocal message to all government officials: the consequences of corruption transcend generations. The best inheritance is not wealth but integrity,” Undersecretary Carlo Carag, head of the DOF Revenue Operations and Legal Affairs Group, said.

Wealth out of proportion to salary

In upholding RIPS’s allegations of unexplained wealth against Macaranas, the Office of the Ombudsman found that “there is a prima facie showing that respondent acquired during his incumbency an amount of property and money manifestly out of proportion to his salary and his other lawful income and his wife’s lawful income,” which “is a sufficient cause for his removal or dismissal had he not died,” citing Sections 8 and 11 of RA 3019. Macaranas died on January 10, 2007 as shown in his death certificate.

In addition, the Office of the Ombudsman, in its Joint Resolution of even date, found substantial evidence against Macaranas for violation of RA 6713, Dishonesty and Grave Misconduct, after it was established by RIPS that his significant interests in Steadfast, his brokerage firm, as Vice-President and stockholder, more likely caused conflict of interest with his functions and responsibilities as Customs Operations Officer V.

 

Macaranas declared false net worth in SALNs

Apart from laboring under a conflict of interest as prohibited by law, the Office of the Ombudsman resolved, among other findings, that Macaranas “willfully and unlawfully made false declarations of his assets and true net worth in his SALNs, as required by law; and he unlawfully acquired assets as much as tenfold more than his salary and other lawful income and his wife’s lawful income.”

Although Macaranas’s administrative liabilities for Grave Misconduct and Dishonesty warranted his dismissal from service under Civil Service rules and regulations, only the accessory penalty of forfeiture of retirement benefits was imposed upon him in view of his demise during the pendency of the investigation commenced against him.

The twin Resolutions of the Office of the Ombudsman were an offshoot of the complaint filed by RIPS against Macaranas on September 19, 2005.

RIPS is the anti-corruption arm of the Department of Finance (DOF), created pursuant to Executive Order No. 259, s. 2003, to detect, investigate, and prevent graft and corrupt practices committed by errant revenue officials and employees under the jurisdiction of the DOF, including the Bureau of Customs (BOC). The DOF encourages the public to help DOF in its campaign by reporting corrupt practices and extravagant lifestyles of BOC, BIR, Treasurers and DOF employees and officials to www.perangbayan.com.

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DIC to continue processing claims of Rural Bank of Reina Mercedes (Isabela) depositors

PDIC to continue processing claims of Rural Bank of Reina Mercedes (Isabela) depositors

 

 

The Philippine Deposit Insurance Corporation (PDIC) announced that it will continue to receive and process deposit insurance claims from depositors of the closed Rural Bank of Reina Mercedes (Isabela), Inc. at the PDIC Claims Counter, 4th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino Street, Makati City.  Claims may also be filed through mail.

PDIC has already concluded the on-site claims settlement operations for the closed Rural Bank of Reina Mercedes last February 21, 2014.

PDIC sent notices of payment amounting to P3.5 million involving 766 accounts with balances of P50,000 and below where the filing of claim is waived by PDIC. Meanwhile, PDIC paid 286 claims during the on-site claims settlement operations involving 246 accounts for a total amount of P51.01 million deposits.

As of February 21, 2014, PDIC has yet to receive deposit insurance claims for 197 accounts, or 16% out of 1,253 accounts that require the filing of claims. The total amount of deposits covered by these outstanding accounts is P7.32 million.

When filing deposit insurance claims, depositors are advised to personally present their duly accomplished Claim Form, original evidence of deposit, and two (2) original valid photo-bearing IDs with signature of the depositor.  Depositors may also file their claims through mail and enclose the same set of document requirements.

Depositors who are below 18 years old should submit either a photocopy of their Birth Certificate issued by the National Statistics Office (NSO) or a duly certified copy issued by the Local Civil Registrar as an additional requirement.  Claimants who are not the signatories in the bank records are required to submit an original copy of a notarized Special Power of Attorney (SPA). In the case of a minor depositor, the SPA must be executed by the parent.

The procedures and requirements for filing deposit insurance claims are posted in the PDIC website, www.pdic.gov.ph.  The Claim Form and format of the Special Power of Attorney may also be downloaded from the PDIC website.

In accordance with the provisions of the PDIC Charter, the last day for filing deposit insurance claims in the closed Rural Bank of Reina Mercedes is on February 10, 2016.  After said date, PDIC, as Deposit Insurer, shall no longer accept any deposit insurance claim.

For more information, depositors may contact the Public Assistance Department at telephone numbers (02) 841-4630 to 31, or e-mail atpad@pdic.gov.ph.  Depositors outside Metro Manila may call the PDIC Toll Free Hotline at 1-800-1-888-PDIC (7342).

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DOF-RIPS brings Porsche-driving Customs messenger to justice

DOF-RIPS brings Porsche-driving Customs messenger to justice

Carag: President’s Customs Reform Team is serious in fighting corruption

 

The law finally caught up with the Porsche-driving Bureau of Custom (BOC) messenger who figured in a shooting incident in the South Luzon Expressway (SLEX) and at the Resort World Complex in January 21, 2012.

Paulino C. Elevado IV (Elevado) was found guilty by the Office of the Ombudsman of Serious Dishonesty, with the aggravating circumstances of Conduct Prejudicial to the Best Interest of the Service and Violation of the Code of Conduct and Ethical Standards for Public Officials and Employees. Ordinarily, the penalty is dismissal from government service, but since Elevado has resigned, the Ombudsman meted out a fine of P20,000.00 and forfeiture of all his retirement benefits, with prejudice to reemployment in any branch or instrumentality of the government, including government-owned or controlled corporations.

The Ombudsman also found probable cause to indict Elevado for 5 counts of Falsification of Public Document and 2 counts of violation of Section 7 of the Anti-Graft and Corrupt Practices Act for his false declarations in his Statement of Assets, Liabilities and Net Worth (SALN).

“We consider the Ombudsman’s resolution on Elevado’s case and his indictment as a victory for good governance. It sends a signal to customs personnel that the President’s Customs Reform Team is serious in cleansing the Bureau of corrupt officials,” Undersecretary Carlo Carag, head of the Revenue Operations and Legal Affairs Group, said.

The case stemmed from a complaint filed in February 2012 by the Revenue Integrity Protection Service (RIPS), the anti-corruption arm of the Department of Finance (DOF). In its Decision, the Ombudsman agreed with complainant DOF-RIPS that Elevado concealed and distorted the truth when he repeatedly omitted in his SALN his other so-called “businesses” from the time he entered public service in 1992 to 2008.

“It was only in 2008, or sixteen years after assuming office, that respondent acknowledged that he was engaged in ‘Buy & Sell of Cars & General Merchandise, Various Small Businesses’, without identifying these businesses with sufficient particularity,” said the Ombudsman.

The Anti-Graft Body also found Elevado committing conduct prejudicial to the best interest of the service when he figured in the 2012 shooting incident in SLEX. In the said event, Elevado had a traffic altercation with Christopher Verceles near the Magallanes Flyover in Makati City, which led to a speed car chase and shooting incident that ended in front of Resorts World Hotel.

The Decision stated, ”The respondent (Elevado) did not act in a manner that upheld the image and integrity of his office. In no manner could the respondent justify his acts as an act of self defense or in enforcement of his rights.” The Ombudsman added that the tollway’s cameras caught the respondent driving in a manner that threatened the lives of other motorists.

DOF-RIPS also calls on the public to help the Government in fighting corruption by reporting through the www.perangbayan.com, BOC and BIR personnel engaged in corrupt practices or ostentatious display of wealth or lifestyle.

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