The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against SHANK KAYE (KAYE) for Willful Attempt to Evade or Defeat Tax, Deliberate Failure to Make a Return, Willful Failure to Withhold and Remit Tax, and for Use of Fake BIR Certificate Authorizing Registration (CAR) and Tax Clearance Certificate (TCC), in violation of Section 251, 254, Section 255 (in relation to Section 28(B), 196 and 200), and Section 257 of the NationalInternal Revenue Code of 1997, as amended (Tax Code).
Pursuant to an initial investigation conducted by the BIR, KAYE bought a condominium unit in One Serendra (Bonifacio Global City) from KAMARI OVERSEAS LIMITED (KAMARI) for P14 million as evidenced by a Deed of Absolute Sale dated July 14, 2011.
KAYE is a registered taxpayer of BIR Revenue District Office (RDO) No. 44, Taguig/Pateros with addresses at a) 706-C One Serendra, Bonifacio Global City, Mandaluyong City, b) Mahogany Place, Phase 3, Brgy. Ususan, Taguig City, and c) Units 415-416, NUI Building, Royal Palm Residences, Brgy. Ususan, Taguig City. KAMARI, on the other hand, is a non-resident foreign corporation.
By virtue of the Deed of Absolute Sale, the subject condominium unit was transferred to KAYE for which a new Condominium Certificate of Title (CCT) was issued. Investigators, however, discovered that the sale was fraudulent since the corresponding taxes were not paid before the title was transferred.
As certified by RDO No. 44, the CAR and the supporting TCC used by KAYE to effect the transfer of title of the said unit to his name were fake/falsified. It was also verified that the subject TCC corresponds to an entirely different sale transaction where the vendor is another corporation, and not KAMARI. It was further certified by the said RDO that no taxes were ever withheld or paid, neither were there tax returns filed, pertaining to the transaction between KAMARI and KAYE.
Consequently, KAYE is liable for the unpaid taxes pertaining to the subject transaction. As the vendee, he was constituted as a withholding agent for the said transfer of real property. The fact that he transacted with a non-resident foreign corporation made him all the more liable in filing the appropriate tax return and remit the taxes due thereon. Furthermore, the Deed of Absolute Sale covering the said transaction stated that KAYE was liable for taxes due in the transaction.
KAYE was sued for a total deficiency tax liability amounting to P10.96 million, inclusive of surcharges and interests, broken down into: Final Withholding Tax of P10.44 million; and Documentary Stamp Tax of P0.52 million.
The case against SHANK KAYE is the 187th 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. 8, Makati City.