DAR and PNP Corporate Supplier Charged with Tax Evasion

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DAR and PNP Corporate Supplier Charged with Tax Evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against BOME ENTERPRISES & CONSTRUCTION CORPORATION (BECC) for Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to Supply Correct and Accurate Information in its Income Tax Returns (ITR) and Value Added Tax (VAT) Returns for taxable years 2010, 2011, 2012 and 2013, as defined underSections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Likewise charged for the same violations were its responsible corporate officers – President ERNESTO J. PENSOTES, and Treasurer PAMELA G. PENSOTES.

Respondent BECC is a domestic corporation engaged in the business of wholesale of construction materials, hardware, plumbing, and heating. Its business address is at Lot 3 Block 5 Cabal Street Ph 5, AFPOVAI Fort Bonifacio, Taguig City.

In order to ascertain the true income received by BECC, access letters were sent to its clients – the Department of Agrarian Reform (DAR) and the Philippine National Police (PNP). In reply to said access letters, DAR issued a certification confirming its income payments to BECC for taxable years 2010 to 2013. The PNP also confirmed its income payments to BECC for the same period by issuing two (2) certifications pertaining to two different Taxpayer Identification Numbers (TIN) of BECC, one of which is an invalid TIN.

Investigation showed that BECC declared an income in the aggregate amount of only P25.88 million for the period 2010 to 2013 when in truth and in fact, it received a total income amounting to P165.69 million. BECC received income payments in the sum of P21.79 million in 2010, P35.88 million (PNP – P34.64 million and DAR – P1.24 million) in 2011, P54.29 million (PNP – P52.7 million and DAR – P1.59 million) in 2012, and P53.73 million (PNP -P17.26 million and DAR – P36.47 million) in 2013. The respondent company declared with the BIR NO OPERATIONS in 2010, P1.42 million in 2011,P2.06 million in 2012, and P22.40 million in 2013.

BECC and its responsible corporate officers were assessed deficiency tax liability amounting to P129.95 million, inclusive of surcharges and interests, broken down into: 2010 – P22.58 million (Income Tax – P15.97 million and Value Added Tax – P6.61 million); 2011 – P32.75 million (Income Tax – P23.18 million and Value Added Tax – P9.57 million); 2012 – P45.38 million (Income Tax – P32 million and Value Added Tax – P13.38 million); and 2013 – P29.24 million (Income Tax – P17.31 million and Value Added Tax – P11.93 million).

The case against BOME ENTERPRISES & CONSTRUCTION CORPORATION, together with its responsible corporate officers, is the 384th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of the National Investigation Division.