International School rapped for unreported purchase of parcels of land

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International School rapped for unreported purchase of parcels of land

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against MULTIPLE INTELLIGENCE INTERNATIONAL SCHOOL, INC. (MIIS, INC.) for Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to Supply Correct and Accurate Information for taxable year  2013, in violation of Sections 254 and 255, in relation to Sections 253 (d) and 256 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Charged with the respondent corporation as responsible corporate officers were its President EUSEBIO A. ABAQUIN, and Treasurer RAMON A. ABAQUIN.

MIIS, INC. is a domestic corporation registered with the Securities and Exchange Commission (SEC) with registered address at Unit 01-18 3/F Elizabeth Hall, Katipunan Ave., Loyola Heights, Quezon City. Its primary purpose is to establish and operate an educational institution / learning center which shall provide courses of study in pre-school, elementary and secondary schools.

Investigation by the BIR showed that MIIS, INC. purchased parcels of land worth P100 million. Despite having paid a substantial amount for the said purchase, MIIS, INC. failed to report the acquisition in its Comparative Audited Financial Statements for taxable year 2013 attached to its Income Tax Return (ITR) for the same year.

MIIS, INC.’s Financial Statements for taxable year 2013 showed that it declared only the amount of P87.19 million as its total assets, without including the land it acquired amounting to P100 million. This concealment of asset is evidently a scheme to conceal undeclared revenues.

As a result of their acts and omissions, the respondent corporation and its responsible corporate officers were sued for deficiency income tax for taxable year 2013 in the aggregate amount of P18.421 million, including surcharge and interest.

The case against MULTIPLE INTELLIGENCE INTERNATIONAL SCHOOL, INC., together with its responsible corporate officers –  President EUSEBIO A. ABAQUIN, and Treasurer RAMON A. ABAQUIN – is the 361st filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of the National Investigation Division.