The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ROVIC PISO EMPLEO (EMPLEO) for Willful Attempt to Evade or Defeat Tax and Willful Failure to Supply Correct and Accurate Information, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
EMPLEO is the sole proprietress of CONSOLACION MANPOWER CONSULTANT SERVICES (CMCS) which is engaged in the business of manpower services. Her registered address is Poblacion Occidental, Consolacion, Cebu
Records of investigation showed that a Letter Notice (LN) was issued to EMPLEO on November 5, 2007 informing her of the discrepancies arising from the computerized matching conducted by the BIR on the information/data provided by Withholding Agents/Payors and Payees/Income Recipients against her declarations per Income Tax and Value Added Tax (VAT) returns. The matching process indicated an underdeclaration of more than 30%.
On 31 July 2013, EMPLEO was issued Letter of Authority (LOA) No. 211-2013-00000118 for the examination of her books of accounts and other accounting records for all internal revenue taxes for taxable year 2005.
To validate said findings, access letters were sent by BIR to Konyx Manufacturing Co., Inc. (KONYX) and Vital Manufacturing Co., Inc. requesting for certification as to income payments made to EMPLEO / CMCS. In reply to the access letter, KONYX gave to the BIR a sworn certification stating that EMPLEO/CMCS received a total of P10.09 million from the company in taxable year 2005.
Copies of EMPLEO’s Income Tax and VAT returns secured by investigators, on the other hand, showed that EMPLEO declared with the BIR a gross sales / receipts of only P761,640.00.
As a result of her deliberate underdeclaration of income, EMPLEO failed to pay the correct amount of taxes in 2005 thereby depriving the government of taxes due in the sum of P11.86 million, inclusive of surcharges & interests, broken down as follows: Income Tax – P8.81; and VAT – P3.05 million.
The case against ROVIC PISO EMPLEO is the 180th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of Revenue Region No. 13, Cebu City.
