Building contractor faces tax evasion raps-A A +A
Thursday, October 25, 2012
MANILA -- A building contractor and a businessman are the latest targets of tax evasion cases filed before the Department of Justice on Thursday.
With a combined tax liability of P45.2 million, the Bureau of Internal Revenue (BIR) accused Engineer Ruben Uy Yu or Ryu Construction of willful attempt to evade taxes and failure to supply the agency with correct and accurate information for 2007 and 2008.
Based on third party information, Yu earned at least P16.05 million in 2007 and P52 million in 2008.
Yu, however, declared an income of only P5.57 million in 2007 and P5.67 million in 2008. The huge disparity between declared income and the income earned is more than 30 percent and constitutes prima facie evidence of fraud, according to the National Internal Revenue Code of 1997.
The BIR computed Yu’s deficiency income tax at P39.43 million including surcharge and interest.
Elvinario Valenzuela, meanwhile, allegedly attempted to evade taxes and failed to file ITRs in 2009 and 2010.
The BIR based its case against Valenzuela on the so-called expenditure method that assumes that if a person’s expenses in a given year exceed his income, the difference is considered as unreported income.
BIR investigation showed Valenzuela bought a Toyota Hi Ace Grandia and a Nissan Patrol for P1.68 million in 2009. He also spent close to P8 million in 2010 for a fire truck, a Hummer and a Grandview condominium unit with parking when he also invested in stocks and set up a restaurant.
Valenzuela did not file an ITR for the two-year period and the BIR assessed his deficiency income tax at P5.77 million with surcharge and interest. (Virgil Lopez/Sunnex)