BIR files tax evasion charges against lady Insurance Advisor

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The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against LORENZA DAVID HUANG (HUANG) for Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to Supply Correct and Accurate Information in her Income Tax Returns for taxable years 2009 and 2010, all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

HUANG is an active insurance advisor, licensed mutual fund representative and authorized distributor of various products of insurance. Her registered address is at 19 Don Antonio, Villa Beatriz, Holy Spirit, Quezon City.

In the course of investigation, access letters were prepared and sent to various companies requesting for certifications as to income payments made by them to HUANG. Replies to said access letters showed that HUANG received income payments ofP11,467,966.87 & P93,199.74 in 2009, P15,790,345.47 & P406,775.76 in 2010 and P19,638.03 & P411,039.29 in 2011.

HUANG’s tax returns for taxable year 2009 and 2010 were secured by investigators. After evaluation and comparison of documents and information at hand, the BIR discovered that HUANG deliberately failed to supply correct and accurate information in her annual income tax return for taxable years 2009 and 2010.

HUANG received a total income payment of P11.56 million in 2009 but only declared a gross income of P3.92 million with the BIR for the same year, thus grossly underdeclaring her reported gross income by P7.64 million or 194.62%. For 2010, she received a total income payment of P16.20 million but only declared a gross income of P4.05 million with the BIR, thereby substantially underdeclaring her reported gross income by P12.15 million or 300.33%.

Under Section 248(B) of the Tax Code, an underdeclaration of taxable income by more than 30% constitutes a prima facie case of fraud tantamount to tax evasion.

The estimated aggregate tax liabilities of HUANG amounted to P13.13 million for deficiency income tax covering taxable years 2009 and 2010, inclusive of surcharges & interests.

The case against LORENZA DAVID HUANG is the 179th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.