BIR files tax evasion case vs bus company
MANILA, Philippines -The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint at the Department of Justice against bus company KingSam Express for tax evasion.
In a statement, the BIR said KingSam and its president Samuel S. Santos was charged for tax evasion for taxable years 2008 and 2009. KingSam was assessed a total tax liability of P33.59 million.
Also charged were certified public accountants Jeodimel Octaviano-Coronado and Melani Maano Lopez for certifying the company's financial statements, even though it contained misstatements of facts.
KingSam, which is based in Valenzuela, operates a public transport service for passengers traversing the route of Malanday via EDSA, Monumento to Muntinlupa.
The BIR said it got records from the Land Transportation Office that showed KingSam bought several buses in 2008 and 2009. In 2008, it bought 7 buses for a total of P13.65 million, and in 2009, it bought 18 buses valued at P36 million.
However, the acquisition costs were not reflected in the financial statements. The BIR also noted the financial statements for those two years showed its revenues did not support the capacity to buy buses. KingSam declared revenues in the amounts of P1.2 million and P1.6 million in 2008 and 2009, respectively.
The BIR used the Expenditure Method, which proceeds on the theory that where the amount of money which a taxpayers spends in a given year exceeds his reported income, and the source of money is unexplained, then such expenditures represent unreported income.
Using this method, the BIR said KingSam's underdeclaration of income was determined at 1,126% in 2008 and 2,217% in 2009.
Infant wear retailer, engineering firm also face tax raps
Meanwhile, the BIR also filed a case against Manling Uy Lim, owner of Little Bebe Baby Products and ACC Center, for failing to pay taxes in 2007.
The BIR investigated Lim, but she failed to provide the BIR with documents despite being served the requisite notices. Lim was assessed a tax deficiency of P4.13 million.
Also, the BIR filed a case with the DOJ against engineering company LVS Glimpex Philippines Corp. and its president Bonifacio V. Ladia for failing to pay taxes in 2008. The tax deficiency was assessed at P4.83 million.