Flower shops, accountant, bottle supplier face tax evasion raps

MANILA -- A Valenzuela City-based bottle supplier, an accountant, and two flower shops were charged with tax evasion worth at least P80.62 million before the Department of Justice (DOJ) on Thursday.

In the case of BGC Bottle Dealer Inc. and its president Estanislao Gonzales, the Bureau of Internal Revenue (BIR) suspected that the company lied on in its annual income tax return and quarterly value added tax returns for 2011, triggering the issuance of a letter notice to audit.

After scrutinizing BGC's books, the BIR said the company listed only P9.69 million in sales in 2011 in its ITR but third party sources showed that its revenues amounted to at least P122.8 million that year.

It also declared only a total of P8.35 million in its quarterly VAT returns but third party sources showed sales of P122.8 million.

The BIR computed BGC's deficiency tax liability, including surcharge and interest, at P80.62 million for 2011, consisting of P56.56 million in deficiency income tax and P24.06 million in deficiency VAT.

Accountant Vergilio Diaz, meanwhile, is facing two cases for knowingly using fake or falsified revenue official receipts, unlawful pursuit of business and other violations of the tax code.

The cases against Diaz stemmed from the BIR's investigation of his clients, Emerson Lao, proprietor of Kenzie Construction Supply, and Benhur Go, president of Hurleson Steel Corp.

The BIR notified Lao that he has deficiency taxes for 2008 while Go was informed that he has the same liability for 2011 and 2012.

Both Lao and Go provided the BIR with copies of documents related to their tax payments and their corresponding revenue official receipts.

Following an analysis by the BIR Laboratory Section, it noted that the receipts provided by Lao and Go were fake. Diaz's clients then showed the BIR copies of Diaz's billing statements, petty cash vouchers and official receipts.

The BIR also discovered that Diaz was not a registered tax practitioner when he provided accounting services to his two clients last year.

Lastly, Flowers by Sylvia and Casa Flores Inc. are accused of violating section 237 of the tax code or not issuing duly registered receipts or sales/commercial invoices.

The BIR said some of its officers posed as customers at the Flowers by Sylvia on several occasions this February.

They were allegedly issued only provisional receipts that do not conform to the invoicing requirement provided under the law.

The shop was then served a mission order during which the BIR confiscated its invoice booklet, delivery receipt booklet and provisional receipt booklet.

An examination of the booklets showed that they are not duly registered with the BIR as required by law.

The following Casa Flores officers, meantime, were slapped with complaints: Belen Bactad, Edgar Bactad and Fe Bactad-de Leon.

If found guilty of violating section 264 of the tax code for failing to issue receipts or sales or commercial invoices, the responsible officers of the flower shops face imprisonment of two to four years and a fine of at least P1,000.(Virgil Lopez/Sunnex)