BIR files 4 tax evasion cases

Posted at 10/27/11 1:10 PM

MANILA, Philippines (UPDATE) - The Bureau of Internal Revenue (BIR) has filed 4 tax evasion complaints before the Department of Justice today, 3 of which are against professionals, and one against a manufacturing company.

The BIR charged a certain Engr. Norberto Elisterio Fedelicio, a contractor engaged in the construction business, for acts or omissions constituting willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information for taxable years 2009 and 2010, in violation of the National Internal Revenue Code (NIRC).

He has been assessed with a total tax deficiency of P26.41 million.

BIR Commissioner Kim Henares told reporters at a news conference that Fedelicio received income payments amounting to P46.43 million for 2009 and P28.73 million for 2010. This information was gathered with the cooperation of several government agencies, departments and local government units that transacted business with Fedelicio.

"This is where cooperation and coordination with various government agencies is effective. When the government reports it to us, we expect this amount to be reflected by the contractor," Henares said.

Upon verification, Fedelicio's income tax returns showed that he only declared sales, receipts, and income amounting to P12.89 million in 2009, and P10.09 million in 2010, Henares bared.

Endocrinologist Ma. Leonora Del Rosario Capellan was charged with 55 counts of failure to issue official receipts (ORs) penalized under Section 264 of the NIRC.

Capellan is a licensed medical doctor and renders services at the Makati Medical Center. Henares revealed Capellan is a diplomate of the Philippine Society of Endocrinology and Metabolism, and a diplomate and fellow of the Philippine College of Physicians.

Capellan's Makati Medical Center business premises was put under surveillance by the BIR pursuant to a Mission Order authorized by Henares, a poseur-patient was also utilized for the operation. The poseur-patient reported to BIR investigators that she was not issued a receipt and was only issued one by Capellan's secretary upon demand by the investigators.

An appointments book and a booklet of ORs were confiscated and subsequently compared. Henares said it was discovered that the physician failed to issue ORs to 55 of her patients from September 2011 to October 5, 2011.

Dr. Robina Manianglung, a dentist, was slapped with one count of unlawful pursuit of business and one count of failure to issue receipts which stemmed from her alleged failure to pay with the BIR the annual registration fee of P500 for the practice of her dental medicine profession, and her failure to issue ORs for her professional services.

A BIR special investigator again posed as a patient and paid the dentist P1,500 for teeth capping, but was not issued the corresponding receipt.

Commissioner Henares bared Manianglung also failed to pay the BIR the required annual registration fee for her business.

Manianglung is the first dentist charged by the BIR under the Aquino administration.

Asked why the BIR is filing these "small cases" instead of running after big-time corporations, Henares said: "Hindi sa maliit or malaki, the law has Section 264 and it does not distinguish whether maliit o malaki."

She pointed out that filing cases against professionals and private practitioners is serving its purpose of deterring evasion of payment of taxes by the sector since the BIR posted a 25% increase in the payment of income tax as of April this year.

Meantime, manufacturing firm Abante Industries Inc. and its responsible corporate officers -- Charles Uy, president, and Rosita Uy, vice president and corporate treasurer -- were charged with 4 counts of willful attempt to evade or defeat tax, and 4 counts of willful failure to supply correct and accurate information in its quarterly value-added taxreturns for 2004 to 2007.

Nelia Yulo Pasco, a certified public accountant (CPA), was also charged.

Henares said that Abante's underdeclaration of sales amounted to P109.60 million, P378.77 million, P576.22 million, and P60.53 million in 2004, 2005, 2006 and 2007, respectively. Its assessed total tax deficiency is pegged at P1.28 billion, inclusive of surcharges and interests.

The 4 news cases are the 73rd up to the 76th tax evasion cases filed by the BIR, through its Run After Tax Evaders or RATE program under the Aquino administration.