The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against Atty. JESUS I. SANTOS for four (4) counts of willful attempt to evade or defeat tax and four (4) counts of willful failure to supply correct and accurate information in his Income Tax Return (ITR) and to pay the correct tax for taxable years 2006, 2007, 2008 and 2009, all in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Atty. SANTOS is a former member of the Board of Trustees of the Government Service Insurance System (GSIS) with addresses at Room 1201 Travellers Inn Condo, 7880 Makati Avenue, Makati City and No. 100 Abangan Norte, Marilao, Bulacan.

It can be recalled that top executives of Government-Owned and Controlled Corporations (GOCCs) and Government Financial Institutions (GFIs) were the subject of a Senate Committee on Finance (SCF) inquiry after it became public that they received excessive and unwarranted bonuses and allowances. Atty. SANTOS was included in the said inquiry as one of the members of the Board of Trustees of GSIS.

The said inquiry prompted the BIR to issue a Letter of Authority and look into the financial transactions of Atty. SANTOS aided by documents from the Senate Committee on Finance (SCF) and the GSIS.

A comparison made by BIR investigators of the income or revenues declared by Atty. SANTOS in his ITRs for taxable years 2006, 2007, 2008 and 2009 as against the income payments he received from GSIS in the same years revealed that he deliberately failed to declare his correct tax base by substantially underdeclaring his income for the said years.

It was learned that Atty. SANTOS received from GSIS P4.19 in 2006, P4.90M in 2007, P7.39M in 2008 and P8.18M in 2009 in his capacity as member of the Board of Trustees. In contrast, he only declared P1.18M, P1.28M, P0.84M and P0.83M in 2006, 2007, 2008 and 2009, respectively.

An underdeclaration of income or revenues of more than 30% under the Tax Code is considered substantial and constitutes prima facie evidence of a false or fraudulent return tantamount to tax evasion.

Atty. SANTOS is being sued for a total deficiency tax of P12.32M, including surcharges and interests, broken down as follows: P2.47M – 2006; P2.62M – 2007; P3.52M – 2008; and P3.72M – 2009.

The case against Atty. JESUS I. SANTOS is the ninetieth (90th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.