The Bureau of Internal Revenue (BIR) filed criminal charges on Thursday against a local security-providing firm over P57.3 million in tracked deficiency in income taxes for years 2008 to 2010.
In a statement, the BIR said that Red Fox Security Inc., a domestic security company, only disclosed an aggregate of P13 million for their gross revenues from 2008 to 2010, in contrast to their total revenues of P60.5 million tracked through papers and documents between Red Fox and Air Materiel Wings Savings and Loan Association Inc. (AMWSLAI) and other transactions.
“Red Fox was sued for its income tax deficiencies in the amount of P23.44 million, P16.93 million and P16.97 million for taxable years 2008, 2009 and 2010, respectively, or in the aggregate amount of P57.34 million, inclusive of surcharges and interests,” the BIR said.
“The case against Red Fox stemmed from a third-party information provided by an informer who has personal knowledge of the operations of the company,” the agency said.
“In the course of tax mapping operations, the [bureau]apprehended from Red Fox unregistered provisional and official receipts, as well as deposit slips which disclosed that AMWSLAI was a major client of Red Fox,” it added.
Total Red Fox income payments from AMWSLAI transactions in 2008, 2009 and 2010 equaled to P73.6 million.
Under Republic Act 8424, or the Tax Code, “an underdeclaration of taxable income by more than 30 percent constitutes a prima facie [on the face]case of fraud tantamount to tax evasion.”
The tax evasion charges were against Red Fox President Felipe Pacleb, Treasurer Pedro Cezar and other involved Red Fox officers, which was filed before the Department of Justice (DOJ).
Meanwhile, the BIR filed criminal charges to two Asian Development Bank (ADB) employees for failing to comply with their income tax duties for 2012.
Despite being Filipinos and having a nearby BIR payment kiosk at the ADB, bankers Erwin Salavera and Portia Gonzales avoided settling their income taxes last year.
“The agreement between ADB and the government states that only officers and staff of the ADB who are not Philippine nationals shall be exempt from Philippine income tax,” the BIR said in a statement.
According to the Revenue Memorandum Circular 31-2013 of the BIR, compensation income of Filipino bank officers shall be taxable, whether employed in a foreign or local bank which includes the ADB.
“Payment of taxes by Filipino ADB employees was extended by the BIR from April 15, 2013 up to July 15, 2013,” the BIR said, noting that there is no way that the two bankers would have missed paying their taxes.
“Salaveria and Gonzales failed to file their ITRs [income tax rates]and pay the corresponding taxes due thereon,” they added.
The BIR filed the tax evasion cases before the DOJ, in violation of Republic Act 8424, or Tax Code, which requires every Filipino citizen submitting their respective income tax duties to the BIR.
Kristyn Nika M. Lazo