Construction firm faces P300-M tax case-A A +A
Thursday, October 11, 2012
A QUEZON City-based construction firm was slapped Thursday with a P306-million tax case by the Bureau of Internal Revenue (BIR) before the Department of Justice for allegedly evading payment of their obligations from the year 2008 to 2010.
Charges of violation of Sections 254 and 255 of the National Internal Revenue Code were filed against Paulino Go Pe, the sole proprietor of Archipelago Builders, which counts as among its clients several major property development companies such as SM Investment Corps, Zuellig Pharma Corp., and Vista Residences and Filinvest Alabang Inc.
Section 254 refers to the attempt to evade taxes while Section 255 is for failure to supply the BIR with correct and accurate information in the tax returns.
Pe's accountant, Ma. Teresa Garcia, was likewise charged for violating Section 257 of the tax code for certifying Pe's falsified financial statements.
Using third party information as well as its own alphalist, the BIR discovered the discrepancies in Pe's declaration of sales in his income tax return. The alphalist contains the details of the withholding taxes of withholding agents such as employers and clients.
Based on the BIR's investigation, Pe earned at least P644.5 million from 2008 to 2010 from his clients but he declared sales of only P76.69 for the three-year period.
The huge disparity between the sales he declared and the sales determined from the audit is over 30 percent and is considered as prima facie evidence of fraud.
However, the bureau alleged that there was "substantial under declaration of sales [of] more than 30 percent in the years in question."
A separate complaint was filed by the tax bureau against plastics firm PhilPackaging Corp. for failing to pay their P72.66 million tax deficiency in 2009. (JCV/Sunnex)