The Bureau of Internal Revenue (BIR) has filed a criminal complaint with the Department of Justice against Joselito Yap for several charges including tax evasion, and failure to provide correct information in his income tax return (ITR) for taxable year 2011.
The charges, the BIR reported, are in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
Likewise charged were independent Certified Public Accountants Ma. Rita Asinas and Evangeline Cabuyadao-Palisoc for willfully certifying financial statements of a business enterprise containing essential misstatements or omission of facts, in violation of Section 257 of the Tax Code.
Yap is registered with Revenue District Office No. 15, Naguilian, Isabela as engaged in the business of trucking and freight forwarding.
The BIR’s record of investigation showed the tax liabilities of his company Jowelles Auto Parts, Inc. was established by the agency.
Yap filed an amended ITR for 2011 representing his personal and business interests. A perusal of the amended ITR and its attached financial statements showed a tremendous increase in Yap’s non-current assets and liabilities in the amount of P87.18 million and P84.84 million, respectively.
In his original 2011 ITR and its attached financial statements, Yap declared non-current asset and liabilities amounting to only P3.6 million and P1.95 million, respectively.
Investigators established that Yap through Palisoc underdeclared his assets in his original ITR by making it appear that his non-current assets was only P3.6 million.
Yap, through Asinas, likewise misdeclared information in his amended ITR for 2011 by making it appear that the sudden substantial increase of his assets was covered by corresponding liabilities as reflected in the entries Accounts Payable and Mortgage Payable.