MANILA, Philippines – A distributor of Nestle products in the Philippines is facing charges for allegedly evading taxes and committing other violations in 2006, the Bureau of Internal Revenue (BIR) said.
A criminal complaint has been filed with the Department of Justice (DOJ) against DG Cold Chain Distributors Inc., and its president Gregorio Mendoza and treasurer Larry Rodriguez for willful attempt to evade or defeat payment of income tax (IT) and value added tax (VAT), deliberate failure to file its income tax return (ITR) and failure to pay tax thereon, and willful failure to supply correct and accurate information in its VAT returns for taxable year 2006.
BIR said DG Cold Chain and its officers were sued for a total tax liability amounting to P191.41 million.
According to the BIR, the case stemmed from the issuance of a Letter Notice, which was triggered by the cross matching of data provided by Nestle Philippines Inc. on the declarations per VAT returns of DG Cold Chain.
Investigations by the BIR showed that the firm underdeclared its purchases in 2006 by P119.39 million based on a certification issued by Nestle Philippines Inc. that showed that the total sales it made to DG Cold Chain amounted to P133.56 million.
BIR investigators computed the undeclared sales of the company at P138.07 million.
Also charged for failing to pay taxes in 2007 are Sheri Anne Orbeta, the owner of Q-Al General Merchandise, and Nympha Lacdao, the owner of Banawe Paint Center and General Merchandise.
Orbeta was assessed with deficiency tax liabilities amounting to P61.76 million while Lacdao’s tax liabilities reached P10.7 million.
Four other corporations were also slapped with complaints for failing to pay taxes.
Construction firm Buildtosuit Corp., its president Arnold Guiao and treasurer Ma. Marilou Guiao were assessed with deficiency tax liabilities for taxable year 2005 in the sum of P12.97 million.
Auto spare parts trader E & D Parts Supply Inc., its chairman Cipriano Uy and treasurer Margaret Uy, on the other hand, were assessed deficiency tax liabilities for taxable year 2006 amounting to P30.03 million.
Haldane Philippines Inc., its chairman Hua Cuen Uychiyong and chief finance officer Cherry Uyco-Ong were assessed a deficiency VAT liability for taxable year 2007 of P8.92 million.
R-Jell Marketing & Construction, as well as its partners Lily Pedroso, Ernesto Pedroso and Elvin Louie Pedroso are likewise facing charges for willful attempt to evade or defeat tax, and for deliberate failure to supply correct and accurate information in their ITRs and VAT returns for taxable years 2005, 2006, 2007 and 2008.
BIR said R-Jell's tax liabilities amounted to P73.8 million.