THE Bureau of Internal Revenue (BIR) on Friday filed a criminal complaint with the Department of Justice against an industrial company for willful failure to pay taxes under the National Internal Revenue Code of 1997, as amended (Tax Code).
Charged for violating Section 255 in relation to Sections 253 and 256 of the Tax Code were Blue Rhein Chemical Co. (Blue Rhein) and its managing partner Jacob Policarpio.
Blue Rhein is a domestic corporation registered with the Securities and Exchange Commission (SEC) with business addresses at No. 304-342 Dr. J. Fernandez Street, Mauway, Mandaluyong City (Metro Manila). It is engaged in the business of importing, exporting and trading of industrial chemicals and chemical products.
Respondents Blue Rhein and Policarpio were assessed a total deficiency tax liability for taxable year 2006 in the sum of P75.96 million, inclusive of surcharges and interests, broken down into: income tax, P44.69 million; and value-added tax, P31.27 million.
Quezon City records of investigation showed that the respondents were served the corresponding letter notice, letter of authority, preliminary assessment notice, final assessment notice and formal letter of demand with details of discrepancies but failed to protest the assessments, hence making the same final, executory and demandable.
The subsequent issuance of the preliminary collection letter, final notice before seizure, warrant of distraint and/or levy, warrants of garnishment and demand before suit were ignored by the respondents, as the 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 case against Blue Rhein and Policarpio is the 426th filed under the RATE program of the BIR under the leadership of Commissioner Kim Jacinto-Henares.
It is also a RATE case of Revenue Region 7, Quezon City.