Other tax evasion cases filed
ANOTHER construction company was slapped with tax evasion charges for using fictitious withholding tax certificates and payment of its final withholding tax for the years 2003 to 2006, amounting to P712.7 million.
Named in the charge sheet were corporate officers of China State (Philippines) Construction Engineering Corp., namely, Fu Yu Cheng, managing officer and chairman of the board; Fu Chun Yuan, president and director; Gerald Telebrico, secretary and director; Huang Xin Yu, chief financial officer; and Wu Zhi Gang, vice president. Also charged was accountant Daisy Guerra for making false entries in the company’s 2004 and 2006 income tax and VAT returns.
China Philippines, the third company charged by the BIR under its Run After Tax Evaders (RATE) program, is registered with the Securities and Exchange Commission (SEC) engaged in the construction engineering business with office address at Unit 3102 Orient Square, Emerald Avenue, Ortigas Center, Pasig City.
BIR Chief Henares said China Philippines is a subsidiary of China Limited in mainland China which was blacklisted by the World Bank for alleged corruption in rigging the international bidding for a major road project in the Philippines.
It was also found out that the two corporations have interlocking officers and share the same employees and office address, with China Limited being a majority stockholder of China Philippines.
Records showed that China Philippines is liable to pay the government some P712,742,421.32 representing income tax, value added tax and withholding tax deficiencies for the years 2003 to 2006.
China Philippines’ tax deficiencies were discovered by the BIR investigators when the company made use of its mother company’s creditable withholding taxes and creditable VAT in its 2003 to 2006 income tax and VAT returns amounting to P270,154,694.03 without attaching to said returns the pertinent certificates.
The company also failed to produce the withholding certificates even with the issuance of a subpoena duces tecum, giving rise to the conclusion that said documents were falsified.
The firm was only able to produce the certificates of final tax withheld issued by Department of Public Works and Highways (DPWH) the for the year 2006, but it was also discovered to be in the name of China Limited. DPWH confirmed that it had contracted a project with China Limited, but not with China Philippines.
Meanwhile, the incorporators of a Caloocan-based printing company Grand C Graphics, Inc. were also charged for failure to pay deficiency taxes amounting to P96,097,434.03 from 2005 to 2008. Grand C is among the top 10,000 corporations which file its returns through the BIR’s Electronic Filing and Payment System (eFPS).
Named respondents were incorporators Gloria dela Cruz, president, and Deborah Ching, treasurer.
According to the BIR, Grand C refused to settle its long overdue deficiency tax assessments amounting to P59,476,983.92, inclusive of penalties, for the years 2005 and 2006. The tax assessment was made after the company failed to present its book of accounts and other accounting records despite repeated demands.
Grand C is also being used for deficiency taxes amounting to P36,620,450.11, inclusive of incremental penalties, for taxable years 2005, 2006, 2007 and 2008. (JCV/Sunnex)