Delinquent trading and storage companies charged with willful failure to pay tax

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Delinquent trading and storage 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) delinquentcorporate taxpayers from Quezon City 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 LUCKYLAND TRADING CORPORATION (LUCKYLAND) and its President ALBERTO L. TAN. LUCKYLAND is a domestic corporation registered with the Securities and Exchange Commission (SEC) with business address at No. 1054 Quirino Highway, Sta. Monica, D2, Quezon City. It is engaged in the business of buying and selling of hardware, cement, and electrical supplies.

LUCKYLAND and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2006 in the sum of P24.18million, inclusive of increments, broken down as follows: Income Tax (IT) – P17.91 million; and Value Added Tax (VAT) – P6.27million.

Likewise charged for the same violation were GOLDEN RICH WAREHOUSE, INC. (GOLDEN RICH) and its President JESUS L. RAMOS, JR. GOLDEN RICH is a domestic corporation registered with the Securities and Exchange Commission (SEC) with registered address at Unit 205 One Executive Bldg., Col. Martinez, West Avenue, Quezon City. It is engaged in the business of receiving commodities for storage pursuant to the General Warehouse Act.

GOLDEN RICH and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2007in the sum ofP21.48million, inclusive of increments, broken down as follows: IT- P12.61million; VAT- P8.83 million; and Expanded Withholding Tax (EWT) – P40,803.70.

BIR Quezon City records of investigation showed that the abovementioned respondents were served the corresponding Letter Notice (LN), 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) with Details of Discrepancies but failed to protest said assessments, hence making the same final, executory, and demandable.

The subsequent issuance of Preliminary Collection Notices, Final Notices Before Seizure, Warrants of Distraint and/or Levy, Warrants of Garnishment, and Demands Before Suit 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 LUCKYLAND TRADING CORPORATION, and GOLDEN RICH WAREHOUSE, INC., together with their responsible corporate officers, are the 364thand 365th, 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. 7, Quezon City.