The Bureau of Internal Revenue (BIR) today filed separate criminal complaints with the Department of Justice against Spouses JAMES LEE TIU (JAMES TIU) and ANN LORAINE B. TIU (ANN LORAINE TIU) for violating Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Respondent JAMES TIU was charged with Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to Supply Correct and Accurate Information in his Income Tax Return (ITR) for taxable years 2010 and 2011. He is registered with the BIR with residential address at Bay 4 MDC Road Warehouse, Veterans Center, Taguig City.

On the other hand, ANN LORAINE TIU was charged with Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to File her Income Tax Return (ITR) for taxable years 2010 to 2012. She is registered with the BIR with residential address at 120 2nd St., corner A. Del Mundo St., Caloocan City.

Documents obtained from the Commission on Elections (COMELEC) showed that JAMES TIU made a total contribution of P7.5 million to the Vice-Presidential candidacy of Jejomar C. Binay and P2.5 million to the political party PDP Laban in the 2010 National Elections. In the same year, he made a down payment for a BMW3351 Cabrio in the amount of P5.85 million. He likewise sold shares of stocks not traded in the local stock exchange worth P259,500.00 while incurring cost and other expenses amounting to P150,000.00 and paying Capital Gains Tax thereon in the amount of P9,511.00. In his ITR for taxable year 2010, he declared total sales in the amount of P4.01 million and claimed expenses worth P3.65 million. JAMES TIU paid a total amount of P58,750.00 as his income tax.

In 2011, JAMES TIU contracted a loan with Philippine Business Bank (PBB) worth P3.34 million and made an additional investment worth P7.5 million in Greenergy Holdings, Incorporated. In his 2011 ITR, he declared sales amounting to P3.15 million, claimed cost of sales of P2.7 million, deducted expenses worth P125,000.00, and paid a total amount of P42,500.00 as his income tax. In addition, he paid P3.12 million as amortization for his PBB loan.

ANN LORAINE TIU also contributed P7.5 million to the election campaign of Vice-Presidential candidate Jejomar C. Binay and P2.5 million to the political party PDP Laban in the 2010 National Elections as reflected in documents also obtained from the COMELEC. In the same year, she sold shares of stocks not traded in the local stock exchange worthP172,000.00 while incurring cost and other expenses amounting to P100,000.00 and paying Capital Gains Tax thereon in the amount of P6,301.63.

In 2011, ANN LORAINE TIU paid Greenergy Holdings, Incorporated P7.5 million as additional investment and another P21.5 million in 2012. She did not file her ITR for taxable years 2010, 2011 and 2012.

Using the expenditure method of investigation, investigators determined that Spouses JAMES and ANN LORAINE committed substantial underdeclaration of income as they were able to make the aforementioned expenses and investments without any identifiable source of income. Their income for the subject taxable years combined was in fact considerably short vis-à-vis their expenditures.

Spouses JAMES TIU and ANN LORAINE TIU were sued for an aggregate income tax liability amounting to P39.03 million, inclusive of surcharges and interests, broken down into: JAMES – P14.96 million (2010 – P10.55 million; and 2011 – P4.41 million); and ANN LORAINE – P24.07 million (2010 – P6.84 million; 2011 – P4.76 million; and P12.47 million).

The cases against JAMES LEE TIU and ANN LORAINE B. TIU are the 323rd and 324th, respectively, filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. These are likewise RATE cases ofthe National Investigation Division.