THE Bureau of Internal Revenue (BIR) filed on Thursday tax evasion charges in the Department of Justice (DOJ) against a Davao City-based dealership company for allegedly unpaid taxes of P7.29 million in 2007.
BIR filed the complaint against Davao Cebusan Enterprises Inc. (Cebusan), a firm engaged in the dealership of industrial products, safety equipment and office supplies, and its corporate officers led by President and CEO Edwindo Ty Ong for alleged wilful attempt evade taxes and for deliberate failure to file income tax returns.
Cebusan officers, including treasurer Elvira Ong and officer-in-charge Rosita Lumasag, were charged with violating Section 255 in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997.
Respondents Cebusan and its responsible corporate officers were assessed a total deficiency tax liability for taxable year 2007 in the sum of P7.29 million, inclusive of surcharges and interests, broken down into: income tax – P4.14 million; and value added tax – P3.15 million.
Records of investigation showed that the respondents were served the corresponding Letter of Authority (LOA), Requests for Presentation of Records, Subpoena Duces Tecum (SDT), Preliminary Assessment Notice (PAN), Final Assessment Notice (FAN), and Formal Letter of Demand (FLD) with Details of Discrepancies but failed to protest said assessments, hence making the same final, executory, and demandable.
The Cebusan stopped communicating with the BIR and refused to pay their unpaid liabilities even after the issuance of the Warrant of Distraint and/or Levy, Warrant of Garnishment, and Demand Notice.
The respondents however earlier paid the compromise penalty of P1,000 on Withholding Tax, and the sum of P6,548.70 to cover the payment of their documentary stamp tax liability after the BIR's issuance of the Preliminary Collection Notice, Final Reminder, and Final Notice Before Seizure.
BIR said the respondents' obstinate failure and continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands, constitute wilful failure to pay the taxes due to the government.
The case against Cebusan is the 425th case filed under the Run After Tax Evaders (Rate) program of the BIR.
Rate is a program initiated by the Department of Finance (DOF) and BIR to investigate and prosecute individuals or entities engaged in tax evasion and other criminal violations of the National Internal Revenue Code of 1997. (Sunnex)