BIR files P102.94M tax evasion raps vs. Cebu trader

September 29, 2011 9:41 pm 

MANILA, Sept. 29 — The Bureau of Internal Revenue (BIR) filed before the Department of Justice (DOJ) a P102.94-million tax evasion case against a Cebu businessman on Thursday.

In a press conference, BIR Commissioner Kim Jacinto-Henares said that trader Nilo Alegado was charged for willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information in his Income Tax Returns (ITRs) for taxable year 2009 in violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC0 of 1997.

Alegado is engaged in the business of renting real properties and dealing of rice and operates under the name "New Store" in Consolacion Public Market, Poblacion Oriental, Consolacion, Cebu.

Henares said that records of rice importations at the National Food Authority (NFA) showed that Alegado made importations for 2009 amounting to P183.01 million.

A comparison of the same amount with the declaration of Alegado in his ITR and Audited Financial Statements for the same year filed with the BIR showed purchases of just P3.41 million, indicating a huge discrepancy in the total amount of P179.60 million, which is tantamount to underdeclared sales per investigation.

Henares said that adding the declared sales of Alegado in his ITR of P4.33 million, sales should have been P183.94 million.

Total percentage of underdeclaration of sales per investigation is 4,143.34 percent, Henares said.

Under the NIRC of 1997, an underdeclaration of taxable income of more than 30 percent is considered as substantial underdeclaration and constitutes prima facie evidence of fraud tantamount to tax evasion.

Henares said that Alegado was slapped with a deficiency income tax assessments for taxable year 2009 in the aggregate amount of P102.94 million, inclusive of surcharges and interests.

The case against Alegado is the 68th filed under the BIR's Run After Tax Evaders (RATE) program. (PNA)

scs/PTR/mec

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