The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against two (2) delinquent corporate taxpayers from Quezon City and Rizal 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 EM RAMOS DEVELOPMENT CORPORATION (EM RAMOS) and its President EMERITO B. RAMOS. EM RAMOS is a domestic corporation registered with the Securities and Exchange Commission (SEC) with registered address at No. 273 Katipunan Avenue, Loyola Heights, Quezon City. It is engaged in business as real estate developer and dealer.
EM RAMOS and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2006 in the sum of P17.45 million, inclusive of increments, broken down as follows: Income Tax (IT) – P15.82 million; Value Added Tax (VAT) – P1.62 million; and Expanded Withholding Tax (EWT) – P13,097.38.
Likewise charged for the same violation were YUPANGCO COTTON MILLS, INC. (YUPANGCO) and its Chairman/President GUMERSINDO L. LEUTERIO. YUPANGCO is a domestic corporation registered with the Securities and Exchange Commission (SEC) with registered address at Mahabang Parang, Angono, Rizal/No. 11-A Pili Avenue, Forbes Park, Makati City. It is engaged in the business of textile manufacturing.
YUPANGCO and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2006 in the sum of P52.99 million, inclusive of increments, broken down as follows: VAT- P52.97 million; and Compromise Penalty (CP) – P15,000.00.
BIR Quezon 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), 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 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 EM RAMOS DEVELOPMENT CORPORATION, and YUPANGCO COTTON MILLS, INC., together with their responsible corporate officers, are the 389th and 390th, 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.
