The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against RAYMOND ARROYO BABST (BABST) for Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to File Income Tax Returns for taxable years 2009, 2010, and 2011, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
Respondent BABST is registered with the BIR with registered addresses at 22 King Christian St., Kingspoint Subd., Brgy. Bagbag, Novaliches, Quezon City and No. 140 Libra Street, Cinco Hermanos Subd., Marikina City.
Based on information and documents gathered during the investigation, BABST purchased a Rockwell Condominium worth P2.9 million in 2006 and paid the corresponding Documentary Stamp Tax (DST) thereon in the amount P54,645.00. In 2007, he sold the same property for the same amount and paid the Capital Gains Tax (CGT) thereon amounting to P218,526.00. In 2009, he purchased a parcel of land and residential house in Marikina City for P3.16 million and paid the DST thereon in the amount P47,400.00. Despite these acquisitions, he did not declare any income for the said years.
In 2009, BABST started his distributorship agreement with Pepsi Cola Products Philippines, Inc (Pepsi Cola, Inc). As certified to by Pepsi Cola Inc., BABST made the following acquisitions amounting to P3.53 million (2009), P20.09 million (2010) and P17.12 million (2011). In 2010, he paid various BIR taxes with an aggregate amount of P4,464.85. In 2011, he sold his Vernida Condominium for P4.8 million and paid the CGT thereon in the amount of P288,000.00.
Using the expenditure method of investigation, investigators determined that BABST committed substantial underdeclaration of income as he was able to make the aforementioned purchases despite no record of income from any source. His net income for the past several years combined was in fact considerably short vis-à-vis his property acquisitions and stocks in trade from Pepsi Cola.
As a consequence of her acts and omissions, BABST was sued for an aggregate income tax liability amounting to P23.82 million, inclusive of surcharges and interests, broken down into: 2009 – P3.05 million: 2010 – P13.32 million; and 2011 P7.45 million.
The case against RAYMOND ARROYO BABST is the 320th 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.
