Tuguegarao-based wholesaler charged with willful failure to pay tax

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The Bureau of Internal Revenue (BIR) today filed two (2) separate criminal complaints with the Department of Justice against a delinquent taxpayer from Tuguegarao 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 ELIGIO B. ESCOBAR (ESCOBAR). He is engaged in the business of wholesale of food and beverages under the business/trade name EB ESCOBAR STORE/WAREHOUSE with registered office address at 210 Gallibu St., Libag Norte, Tuguegarao City.

ESCOBAR was sued for deficiency tax liabilities for taxable years 2009 and 2010 in the aggregate amount of P10.40 million, inclusive of increments,broken down into: 2009 – P4.20 million (Income Tax – P1.90 million and Value Added Tax (VAT) – P2.30 million); and 2010 – P6.20 million (Income Tax -P2.70 and Value Added Tax (VAT) – P3.50 million).

BIR Tuguegarao City records of investigation showed that the cases against the abovementioned respondent stemmed from Letter Notices issued against him showing discrepancies in his income tax and VAT declarations with the BIR. He was served the requisite Preliminary Assessment Notices (PAN) with Details of Discrepancies, and Final Assessment Notices (FAN) with Details of Discrepancies. ESCOBAR failed to protest said assessments on time, hence making the same final, executory, unappealable, and demandable.

The subsequent issuance of Preliminary Collection Letters, Final Notices Before Seizure, Warrants of Distraint and/or Levy, and Final Notices Before Suit were ignored by the respondent, as the said tax assessments remained unpaid. The respondent’s obstinate failure and continued refusal to pay his long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government.

The two (2) cases against ELIGIO B. ESCOBAR are the 315th and 316th, 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. 3, Tuguegarao City.