Gattaran Trader Charged with Willful Failure to Pay Income and Value Added Taxes

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Gattaran Trader Charged with Willful Failure to Pay Income and Value Added Taxes

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against REYNALDO P. AQUINO (AQUINO) for Willful Failure to Pay Income Tax and Value Added Tax (VAT) for taxable year 2010, in violation of Section 255 of the National Internal RevenueCode of 1997, as amended (Tax Code).

AQUINO was likewise charged for unpaid deficiency tax liabilities for taxable year 2010 in the aggregate amount of P12.84 million, inclusive of increments, consisting of: Income Tax – P5.90 million; and Value Added Tax (VAT) – P6.94 million.

Respondent AQUINO is a registered taxpayer of Revenue District Office No. 13, Tuguegarao City. He is the sole proprietor of R.P. Aquino Agricultural & Poultry Supply, R.P. Aquino Hardware, and R.P. Palay & Corn Trading with registered addresses at Centro Sur, Gattaran, Cagayan and/or at Palagao Norte, Nabaccayan, Gattaran, Cagayan.

The case against AQUINO originated from a computerized matching of third-party information with the declarations of AQUINO in his VAT returns filed with the BIR. The matching revealed a discrepancy between his purchases as declared in his VAT returns and the declarations of his suppliers amounting to P17.17 million.

BIR Tuguegarao City records of investigation showed that the requisite Letter Notice (LN), Preliminary Assessment Notice (PAN), and Final Assessment Notice (FAN) with Details of Discrepancies were served and received by the respondent. AQUINO, however, failed to settle his tax liabilities or protest said assessments within the thirty-day reglementary period, hence making the same final, executory, unappealable and demandable.

The subsequent issuance of a Preliminary Collection Letter, Final Notice Before Seizure, Warrant of Distraint and/or Levy, and Final Notice Before Suit were ignored by the respondent, as the said tax assessments remained unpaid. AQUINO’s obstinate failure and adamant refusal to pay its long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay his taxes due to the government.

The case against REYNALDO P. AQUINO is the 369th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. This is likewise a RATE case of Revenue Region No. 3, Tuguegarao City.