BIR nets Malampaya Fund Infrastructure Projects Contractor for tax evasion
The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ULYSSES PALCONET CONSEBIDO(CONSEBIDO) for Willful Attempt to Evade or Defeat Payment of Income Tax and Value Added Tax, Deliberate Failure to Supply Correct and Accurate Information in his Annual Income Tax Returns (ITR) and in his Monthly VAT Returns, and Willful Failure to File Quarterly VAT Returns for taxable years 2008and 2009, all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
Respondent CONSEBIDO is the sole proprietor of SEVEN DIGIT CONSTRUCTION AND SUPPLIES (SEVEN DIGIT) with registered address at New Princesa, Tinguiban, Puerto Princesa City, Palawan. Being in the business of construction, SEVEN DIGIT was engaged by the Provincial Government of Palawan to construct several infrastructure projects funded by Malampaya Funds during taxable years 2008 and 2009.
Investigation showed that CONSEBIDO declared in his ITRs for taxable years 2008 and 2009 gross revenues amounting to only P2.71 million andP11.35 million, respectively.
Documents gathered by investigators, including checks, disbursement vouchers, official receipts issued by SEVEN DIGIT, however, showed that he received income payments from the Provincial Government of Palawan amounting to P54.86 million in 2008 and P9.19 million in 2009. He likewise receivedP19.32 million in 2008 and P0.39 million in 2009 as income payments from the Department of Public Works and Highways (DPWH) – Palawan II District Engineering Office. Based on BIR Form No. 2307 (Certificate of Creditable Tax Withheld) submitted by the Office of the Provincial Treasurer, CONSEBIDOalso received P3.50 million in 2009 as income payment.
The said findings pushed CONSEBIDO’s gross revenues per investigation to P74.12 million for 2008 and P13.07 million for 2009. Compared to his gross revenues declaration in his ITRs, he substantially underdeclared his income by P71.41 million or by 2,631% in 2008 and by P1.73 million or by 15% in 2009.
As a consequence of his acts and omissions, CONSEBIDO was assessed an aggregate deficiency tax liability of P93.57 million, inclusive of surcharges and interests, broken down as follows: 2008 – P84.66 million (Income Tax – P60.25 million; and VAT – P24.41 million); and 2009 – P8.91 million (Income Tax – P1.07 million; and VAT – P7.84 million).
The case against ULYSSES PALCONET CONSEBIDO is the 208th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.