MWSS lawyer rapped with P1.95M tax evasion

September 29, 2011 9:41 pm 

MANILA, Sept. 29 — The Bureau of Internal Revenue (BIR) filed on Thursday before the Department of Justice (DOJ) a P1.95-million tax evasion case against a lawyer of the Metropolitan Waterworks and Sewerage System (MWSS).

In a press conference, BIR Commissioner Kim Jacinto-Henares said that lawyer Danilo Cariaga was charged for willful attempt to evade or defeat taxes, willful failure to supply correct and accurate information in his Income Tax Return (ITR), and failure to file his Value-Added Tax (VAT) returns, all for taxable year 2007, in violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC) of 1997.

Cariaga received in 2007 from the MWSS the amount of P2.43 million as payment for his legal services as stated in the letter of the Acting Manager of the Finance Department of MWSS, together with the pertinent disbursement voucher and check.

However, a check of Cariaga's ITR for taxable year 2007 showed a declaration of total income of only P220,456.22 which clearly showed that he failed to supply correct and accurate information in his ITR for 2007 by more than 30 percent.

Under Section 248 of 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 for his failure to declare all his income for 2007, Cariaga was assessed deficiency income tax for 2007 in the aggregate amount of P1.39 million, inclusive of surcharges and interests.

Under the NIRC of 1997, payments for performance of services not exceeding P1.5 million is exempt from VAT.

In this case, Henares said, the income received by Cariaga amounting to P2.43 million is in excess of the said threshold amount, making him liable to VAT.

However, Cariaga failed to file his VAT returns for 2007 and to pay the taxes due thereon in the aggregate amount of P557,036.25, inclusive of surcharges and interests.

The total tax liability of Cariaga was pegged at P1.95 million.

The case against Cariaga is the 69th filed under the BIR's Run After Tax Evaders (RATE) program. (PNA)



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