7 charged for failing to pay ₧825M in taxes

The east National Capitol Region (NCR) office of the Bureau of Internal Revenue (BIR) announced the filing of charges against five companies and two proprietors for their alleged failure to pay taxes amounting to a total of P825 million.

In a statement, BIR Region 7B-east NCR said it filed on Thursday seven separate criminal complaints with the Department of Justice for the firms’ “willful failure” to pay taxes for taxable years 2008, 2010, 2011 and 2012. The BIR-east NCR identified the five companies charged for violating Section 255 in relation to Section 253 (d) and 256 of the Tax Code as: Body Needs and Basic Inc., Firotech Fire Protection Inc., Cristimar Corp., Fourthwave Global Inc., and Asiatech Construction and Industrial Corp. Body Needs, a domestic corporation engaged in buying, selling, distributing, marketing and wholesale and retailing, together with its responsible officers, are being sued for a total deficiency tax liability for taxable year 2010 amounting to P40,388,516.78 inclusive of increments, according to the BIR-east NCR. Respondent Firotech, together with its president, Oliver Cababa, were sued for a total deficiency tax liability for taxable year 2011 amounting to P26,603,390.00 inclusive of increments, the BIR-east NCR said. The statement said Firotech is primarily engaged in the business of providing maintenance services and consultancy services with regards to fire alarms. Cristimar, engaged in the business of trading and services, together with its responsible officers, are being sued for a total deficiency tax liability for taxable year 2011 amounting to P27,379,345.84, inclusive of increments, according to the BIR-east NCR. The government unit said it is suing Fourthwave for a total deficiency tax liability for taxable year 2012 amounting to P14,453,394.04, inclusive of increments, together with its taxable partners. The statement said Fourthwave is engaged in buying, selling, distributing, marketing and wholesale and retail of goods, commodities, wares and merchandise. Along with its responsible officers, construction firm Asiatech, is being sued for a total deficiency tax liability for taxable year 2011 amounting to P10,113,403.10, inclusive of increments, the BIR-east NCR said. Meanwhile, proprietors Donato Pe Benito Bautista and Digna Garrovillas Francisco were also charged for violating Section 255 of the Tax Code. Bautista of Maerdi Foods/ Bestlink Trading, a meat dealer and importer, is being sued for a total deficiency tax liability for taxable year 2008 amounting to P698,475,273.43, inclusive of increments. The BIReast NCR said Maerdi Foods/ Bestlink Trading listed its principal address at 707 Saint John Palmera 4, Taytay, Rizal. Lastly, proprietress Francisco of Dimicor Trading and General Merchandising is being sued for a total deficiency tax liability for taxable year 2012 amounting to P34,708,837.86, inclusive of increments. Primarily engaged in trading, Dimicor Trading and General Merchandising listed its principal address at 544 Martinez Street, San Juan, Morong, Rizal. Investigation records of BIR-east NCR showed respondents failed to either pay or submit relevant supporting documents to either substantiate their claims or refute said assessments or to file an appeal with the Court of Tax Appeals, hence making the said assessments final, executory and demandable. The BIR conducted collection and enforcement strategies with the issuance of the “Preliminary Collection Letters and Final Notices Before Seizure” that proved futile as the afore-cited assessments remained unpaid. Likewise, Warrants of Distraint and/or Levy and Garnishment were issued and served, the BIR-east NCR said. The government agency said that the respondents, however, had no properties that may be distrained or levied and no bank accounts that may be garnished. “Demands Before Suit,” likewise, proved futile, the BIR-east NCR said. “Consequently, the respondents failed to file or pay the corresponding taxes due for the taxable period,” the BIReast NCR said. “Thus, a ‘First and Final Notice, Preliminary Collection Letter,’ ‘Final Notice before Seizure’ and ‘Final Demand before Suit’ were issued by BIR-east NCR and served to them.” “however, despite repeated demands, the taxes due on the subject tax returns remained unfiled or unpaid,” the BIReast NCR said. It added that “the respondents’ failure and continued refusal to file or pay their long overdue deficiency taxes, despite repeated demands, constitute willful failure to file or pay the taxes due to the government.”