Two delinquent taxpayers from Manila charged with willful failure to pay tax

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The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against two (2) delinquent taxpayers from Manila – one (1) individual and one (1) corporate (including its responsible corporate officers) – 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 ERNESTO NEVALGA MILLANES (MILLANES). He is engaged in the business of security agency under the name and business style MILLGOS SECURITY AGENCY with business address at No. 1200 A. Mendoza corner Adelina Streets, Sampaloc, Manila.

MILLANES was sued for deficiency tax liabilities for taxable year 2006 in the aggregate amount of P12.97 million, inclusive of increments, consisting of P9.4 million in Income Tax (IT), and P3.57 million in Value Added Tax (VAT).

Likewise charged for violating Section 255 in relation to Sections 256 and 253 of the Tax Code were TRANS ASIA INTERNATIONAL SERVICES, INC. (TRANS ASIA) and its President ROSEMARIE G. AQUINO.

TRANS ASIA is a domestic corporation registered with the Securities and Exchange Commission (SEC) with business address at G/A Alpha GRANVIEW Condominium, 1716 M.H. Del Pilar St., Malate, Manila. It is engaged in business as freight and cargo forwarder of all classes of goods and merchandise and in connection therewith, to engage in packing, crating, warehousing services of goods in general cargo whether outbound or inbound, inter-island or inter-ocean via sea or land transportation.

TRANS ASIA and its responsible corporate officer were assessed deficiency tax liabilities for taxable year 2006 in the sum of P62.76 million, inclusive of increments, broken down as follows: IT – P47.12 million; VAT – P15.61 million; and Documentary Stamp Tax – P0.03 million.

BIR Manila records of investigation showed that the abovementioned respondents were served the requisite Final Assessment Notices (FAN) and Formal Letters of Demand (FLD) with Details of Discrepancies but failed to protest said assessments, hence making the same final, executory, and demandable.

The subsequent issuance of Preliminary Collection Letters, Final Notices Before Seizure, Warrants of Distraint and/or Levy, Warrants of Garnishment and Demands Before Suit 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 ERNESTO NEVALGA MILLANES, and TRANS ASIA INTERNATIONAL SERVICES, INC. (TRANS ASIA) & its President ROSEMARIE G. AQUINO are the 321st and 322nd, 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. 6, Manila.