Iligan City logistics solution company charged with willful failure to pay tax

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Iligan City logistics solution company charged with willful failure to pay tax

The Bureau of Internal Revenue (BIR) today filed two (2) criminal complaints with the Department of Justice against ILIGAN CARGO MASTERS, INC. (ILIGAN CARGO) for Willful Failure to Pay Taxes as defined under Section 255 in relation to Sections 253 and 256 of the National Internal RevenueCode of 1997, as amended (Tax Code).

Charged with the subject corporation as responsible corporate officers were its Chief Executive Officer / Vice-President SERAFIN R. FERAREN, Chief Operating Officer ARVEE DE LOS REYES and Chief Financial Officer PABLO Y. BUOT.

ILIGAN CARGO is a domestic corporation registered with the Securities and Exchange Commission (SEC) with registered address at #60 Block 8 Lot 19, Sta. Elena, Iligan City. It is engaged in the business of total logistics solution which include arrastre, stevedoring, and other port related services.

The respondent corporation and its responsible corporate officers were assessed deficiency tax liabilities in the aggregate amount of P34.66million, inclusive of increments, broken down as follows: 2009 – P19.17 million (Income Tax – P9.17 million; Value Added Tax – P9.88 million; and Expanded Withholding Tax – P0.12 million); and 2010 – P15.49 million (Income Tax – P8.52 million; Value Added Tax – P6.66million; and Expanded Withholding Tax – P0.31 million).

BIR Cagayan de Oro City records of investigation showed that the abovementioned respondents were served the corresponding Letters of Authority (LOA), Requests for Presentation of Records, Subpoena Duces Tecum (SDT), Preliminary Assessment Notices (PAN), and Formal Letters of Demand (FLD). ILIGAN CARGO filed Motions for Reconsideration / Reinvestigation but were denied by the BIR. Due to its failure to appeal the denial of said motions, said assessments became final, executory, and demandable.

The subsequent issuance of Preliminary and Final Collection Letters were ignored by the respondents, as the said tax assessments remained unpaid. The respondents’ obstinate failure and continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government.

The two cases against ILIGAN CARGO MASTERS, INC. and its responsible corporate officers –  Chief Executive Officer / Vice-President SERAFIN R. FERAREN, Chief Operating Officer ARVEE DE LOS REYES and Chief Financial Officer PABLO Y. BUOT – are the 357th and 358th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. These are likewise RATE cases of Revenue Region No. 16,Cagayan de Oro City.