23 July 2015– The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice (DOJ) against JIBETRONIC TRADING CORPORATION (JTC), together with its President JIMMY T. TANG, for Willful Attempt to Evade or Defeat the payment of IncomeTax, and Deliberate Failure to File its Income Tax Return (ITR) for taxable year 2014, in violation of Sections 254 and 255, in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997, as amended (Tax Code).
Respondent JTC is a domestic corporation registered with the Securities and Exchange Commission (SEC) which holds office at Avesco Bldg., Aurora Blvd. cor. Yale Street, Cubao, Quezon City. It is engaged in the business of wholesale of machinery, equipment, and supplies.
Investigation showed that JTC purchased from Keystone Real Estate Development Corporation (Keystone) a P92.66 million house and lot located in Wack-Wack Greenhills, Mandaluyong City. Respondent JTC tendered full payment of the subject property on January 14, 2014, the same date the Deed of Absolute Sale was executed.
Although registered with the SEC, JTC only registered with the BIR on January 12, 2015. Documents further gathered showed that despite having a paid-up capital of only P0.5 million, it was able to purchase the Wack-Wack property amounting to P92.66 million.
Clearly, in the absence of any declared source of the purchase price of P92.66 million, the said amount is an undeclared income of JTC and must be subjected to income tax.
As a consequence, JTC was likewise sued for an aggregate deficiency income tax liability for taxable year 2014 amounting to P43.22 million, inclusive of increments.
The case against JIBETRONIC TRADING CORPORATION, together with its President JIMMY T. TANG, is the 380th 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. 7, Quezon City. (reytdlc)