The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against two (2) delinquent taxpayers from Malabon City and Valenzuela City for Willful Failure to Pay Taxes under the National Internal Revenue Code of 1997, as amended (Tax Code).
Charged for violating Section 255 of the Tax Code was TAN CHIONG SY CO. He is engaged in printing services of flexible packaging materials under the business name PRINTWORLD ENTERPRISES with business address at 169 Jose P. Bautista Avenue cor. Guava Road, Potrero, Malabon City.
TAN CHIONG SY CO was sued for deficiency tax liabilities for taxable year 2008 in the aggregate amount of P8.30 million, inclusive of increments,consisting of P5.90 million in Income Tax (IT), P2.40 million in Value Added Tax (VAT), Expanded Withholding Tax (EWT) – P7,370.89, and Compromise Penalty – P34,000.00.
Likewise charged for violating Section 255 in relation to Sections 256 and 253 of the Tax Code were YIN GANG MOTORCYCLE PHILS. LTD., INC. (YIN GANG MOTORCYCLE) and its responsible corporate officer – President RICHARD K. CHUA.
YIN GANG MOTORCYCLE is a domestic corporation with business address at No. 3 San Andres St., Canumay, Valenzuela City. It is engaged in the business of trading on wholesale basis, manufacturing and assembling of motorcycles, and importing of motorcycle parts and components.
YIN GANG MOTORCYCLE and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2007 in the sum of P8.60 million, inclusive of increments, broken down as follows: IT – P5.20 million; VAT – P3.40 million; Withholding Tax on Compensation – P9,542.88; and Documentary Stamp Tax – P22,358.75.
BIR Caloocan City records of investigation showed that the abovementioned respondents were served the requisite Preliminary Assessment Notices (PAN), Final Assessment Notices (FAN) and Formal Letters of Demand (FLD) but failed to file a valid protest to said assessments, hence making the same final, executory, and demandable.
The subsequent issuance of the Preliminary Collection Letters, Final Notices Before Seizure, Warrants of Distraint and/or Levy, Warrants of Garnishment, and Final Notices Before Filing of Criminal Complaints 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 TAN CHIONG SY CO, and YIN GANG MOTORCYCLE PHILS. LTD., INC. & its responsible corporate officer are the 317th and 318th, 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. 5, Caloocan City.
