P78-M tax raps filed vs manufacturing, trading firms
MANILA, Philippines - The Bureau of Internal Revenue (BIR) filed separate tax evasion charges against a manufacturing company for alleged unreported sales, and a trading company that allegedly underdeclared its sales.
Charged before the Department of Justice (DOJ) for a combined tax deficiency of P78.46 million were Philpackaging Corp., a local corporation based in Pasig City, and PKC International Trading Corp., a Mandaluyong City-based firm engaged in the trading of sheet metal fabricating machine, tooling and other related products.
BIR Commissioner Kim Henares said Philpackaging made sales to Republic Cement and Peerless Products Manufacturing Corp. amounting to P186.30 million and P18.99 million, respectively, in 2010. Philpackaging also reportedly received income amounting to P449,030 from Pepmaco Manufacturing Corp. in 2010.
However, Philpackaging allegedly substantially underdeclared its sales by P163.33 million or by 385.11% by reporting gross sales of only P42.41 million.
Based on the BIR's computation, Philpackaging allegedly owes government P50.83 million in deficiency tax, inclusive of surcharges and interests.
Named as respondents in the complaint, aside from the corporation, is its president Camino D. Benedicto, and its treasurer, Juanito L. Benedicto.
The second case involving PKC also named as respondents the corporation's president, Jeremy Z. Kalaw, its chief operating officer, Christian P. Pineda, and chief financial officer, Joseph Z. Kalaw.
Henares said that PKC was investigated following confidential information received by the BIR regarding the firm's alleged underdeclaration of its correct sales.
Based on BIR records, PKC submitted its lists of sales invoices and delivery receipts indicating total sales amounting to P42.14 million. However, PKC was found to have underdeclared its sales by P40.45 million or by 2,389% by reporting gross sales amounting only to P1.69 million in its ITR for 2011. Its sales in its VAT returns for the first 3 quarters of the same year were also allegedly underdeclared by P41.16 million, as only P0.98 million was reported.
The BIR pegged PKC's total tax deficiency at P27.63 million, inclusive of surcharges and interests.
The cases against Philpackaging and PKC are the 128th and 129th filed by the BIR under its Run After Tax Evaders program under the Aquino administration.