BIR files tax evasion raps vs school, businessman
MANILA, Philippines - The Bureau of Internal Revenue on Thursday filed a criminal complaint with the Department of Justice against a Cagayan de Oro school and its officials for tax evasion.
In a statement, the BIR said Corpus Christi School Inc (CCSI) and its president Alfonso del Fierro Jr. and chief financial officer/ treasurer Mark Alfonso del Fierro are accused of attempting to evade taxes and failing to supply correct information in their income tax return in 2010.
The BIR sued the school for a total deficiency income tax liability for taxable year 2010 amounting to P14.5 million.
Also charged was Elpedio D. Cuay, the independent certified public accountant (CPA) who signed and certified the 2010 financial statements of CCSI, despite the omission of actual taxable income and misstatement of facts of his client's corporate landholdings.
CCSI, which has an elementary and high school, is located at Tomas Saco Street, Macasandig, Cagayan De Oro City, Misamis Oriental.
The BIR said its investigation showed the school acquired a 10,000 square meter property in Cagayan De Oro for P23 million in February 2010. But despite this, CCSI only declared a net income of P2.175 million for the same year and a combined net income of not more than P15 million for the past several years.
The BIR said CCSI was found to have substantially underdeclared its taxable income by 64% considering its undeclared acquisition of P23 million vis-à-vis its declared income (tuition fees) of P35.94 million.
Since CCSI distributed dividends during the years 2007 and 2008, it cannot be considered as a non-stock non-profit corporation exempt from income tax. It also cannot be considered a non-profit educational institution covered by the preferential tax rate of 10%. The BIR said the school should be considered an ordinary domestic corporation subject to the 30% tax rate.
Furniture business owner in hot water
Also, the BIR filed a criminal complaint with the DOJ against furniture businessman Amado D. Tolentino for tax evasion.
Tolention, who owns ACCM Furniture/ Top Mark Woodcraft in Caloocan City, is accused of underdeclaring income tax payments for 2009 and 2010.
Under Section 248(B) of the Tax Code, an underdeclaration of taxable income by more than 30% constitutes a prima facie case of fraud tantamount to tax evasion.
Tolentino's income tax deficiencies for 2009 and 2010 were estimated at P16.96 million, inclusive of surcharges and interests. He was also sued for his value-added tax deficiencies for 2009 and 2010, estimated of P6.48 million, inclusive of surcharges and interests.