Delinquent contracting and manufacturing companies charged with willful failure to pay tax

  • Post category:News

Delinquent contracting and manufacturing companies charged with willful failure to pay tax

The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against two (2) delinquent corporate taxpayers for Willful Failure to Pay Taxes under the National Internal Revenue Code of 1997, as amended (Tax Code).

Charged for violating Section 255 in relation to Sections 253 and 256 of the Tax Code were LEY CONSTRUCTION AND DEVELOPMENT CORPORATION (LCDC) and its President JANET C. LEY. LCDC is a domestic corporation registered with the Securities and Exchange Commission (SEC) with business address at Hobbies of Asia, No. 8, Macapagal Blvd., Pasay City. It is engaged in the business of general building, general engineering, and foundation works.

LCDC and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2007 in the sum of P14.29 million, inclusive of increments, broken down as follows: Income Tax (IT) – P8.81 million; Value Added Tax (VAT) – P5.29 million; and Expanded Withholding Tax (EWT) -P0.19 million.

Likewise charged for the same violation were TECHNICOLORS INTERNATIONAL, INC. (TECHNICOLORS) and its President ERLINDA S. BERTOL.  TECHNICOLORS is a domestic corporation registered with the Securities and Exchange Commission (SEC) with business address at 15 Ibayo St., Malinta, Valenzuela City. It is engaged in the business of manufacturing goods such as printing inks and coatings and to trade the same on a wholesale / retail basis.

TECHNICOLORS and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2009 in the sum of P27.37 million, inclusive of increments, broken down as follows: IT – P18.92 million; VAT – P7.78 million; and EWT – P0.67 million.

BIR Caloocan City records of investigation showed that the abovementioned respondents were served the corresponding Letters of Authority (LOA), Requests for Presentation of Records, Subpoena Duces Tecum (SDT), Preliminary Assessment Notices (PAN), Final Assessment Notices (FAN) and Formal Letters of Demand (FLD) but failed to protest said assessments, hence making the same final, executory, and demandable.

The subsequent issuance of Preliminary Collection Letters, Final Notices Before Seizure, Warrants of Distraint and/or Levy, and Final Notices Before Filing Complaint were ignored by the respondents, as the said tax assessments remained unpaid.The respondents’ obstinate failure and continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government.

The cases against LEY CONSTRUCTION AND DEVELOPMENT CORPORATION, and TECHNICOLORS INTERNATIONAL, INC., together with their responsible corporate officers, are the 359th and 360th, respectively, filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. These are likewise RATE cases of Revenue Region No. 5, Caloocan City.