The Bureau of Internal Revenue (BIR) today filed two (2) criminal complaints with the Department of Justice against ERWIN V. SALAVERIA and PORTIA Y. GONZALES for Willful Failure to make/file Income Tax Return and pay tax for taxable year 2012, in violation of Section 255 of the National Internal RevenueCode of 1997, as amended (Tax Code).
SALAVERIA and GONZALES are registered taxpayers and Filipino nationals employed at the Asian Development Bank (ADB) located within the jurisdiction of BIR Revenue District Office (RDO) No. 41, Mandaluyong City. SALAVERIA registered with RDO No. 41, Mandaluyong City on March 5, 2002 while GONZALES registered with RDO No. 51, Pasay City on January 5, 2003.
As registered taxpayers, they willfully failed to file their Income Tax Returns (ITRs) and to pay the corresponding taxes on any income they derived since their registration with the BIR. They violated Revenue Memorandum Circular (RMC) No. 31-2013 issued by the BIR clarifying the taxability of the compensation income received by Philippine Nationals and alien individuals employed by foreign governments/embassies/diplomatic missions and international organizations situated in the Philippines, including ADB. The Agreement between ADB and the Government of the Republic of the Philippines states that only officers and staff of the ADB who are not Philippine Nationals shall be exempt from Philippine Income Tax.
Such willful acts of the respondents were further emphasized by their obstinate refusal to file their tax returns and/or pay their taxes despite notification and assistance from the BIR to ADB Filipino employees to file their returns and pay the corresponding tax dues. The BIR through its ADB Task Force briefed ADB officials and ADB Filipino employees and answered concerns and issues on the taxability of the compensation income of Filipino ADB employees.
A BIR kiosk was even established at the lobby of the General Headquarters of ADB to serve as a one-stop window where local ADB personnel can transact business and accommodate registration, transfer of registration and updating of records, filing of ITRs and payment of taxes. Further, payment of taxes by Filipino ADB employees was extended by the BIR from April 15, 2013 up to July 15, 2013.
This, notwithstanding, respondents SALAVERIA and GONZALES failed to file their ITRs and pay the corresponding taxes due thereon.
The cases against ERWIN V. SALAVERIA and PORTIA Y. GONZALES are the 185th and 186th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. They are likewise RATE cases of Revenue Region No. 7, Quezon City.