The Bureau of Internal Revenue (BIR) has filed two separate criminal complaints with the Department of Justice against five individuals for willful failure to withhold and remit capital gains tax (CGT), deliberate failure to pay documentary stamp tax (DST) and use of fake or falsified certificates authorizing registration (CAR) in violation of Sections 255 and 257 (B) (8) of the National Internal Revenue Code of 1997, as amended (Tax Code).
Charged on Thursday were Remedios S.A. Reyes of No. 17 Industria Street, Kapasigan, Pasig City (Metro Manila) and Vicente Josefa.
Reyes is the owner of a house and lot that was sold to Josefa.
Also charged in a separate complaint were Aleth Florence S. Yu and Natividad S. Yu of 1806 Parc Chateau Condominium, Onyx Street, Ortigas Center, Pasig City (Metro Manila) and 18B Cypress Village, Apolonio Samson, Balintawak, Quezon City, respectively, and Imel Jade Y. Yeo of 1440 Unit D-11 Angel Linao Street, Paco, Manila.
Aleth Florence and Natividad were the owners of Unit 1210 Parc Chateau Condominium that was sold to Yeo.
The two cases were prompted by informants who furnished the BIR information alleging that bogus documents were submitted to the Register of Deeds to effect the transfer of title to the subject pieces of property in the name of the buyers.
In the course of the investigation, it was confirmed that the subject assets were indeed transferred by the Register of Deeds in the name of the respective buyers where fake or falsified CARs were submitted.
Reyes allegedly paid CGT of P409,200.00 and DST of P102,300.00 for the sale of the subject house and lot.
A check with the BIR’s Revenue Accounting Division, however, showed no record of tax payments pertaining to the sales transaction.
Neither did payments appear in the Collection and Bank Reconciliation (CBR) System and Taxpayer Accounting System (TAS) of the BIR’s Integrated Tax System (ITS).
Thus, buyer Josefa is liable for willful failure to withhold CGT and seller Reyes is liable for deliberate failure to pay DST.
Further, eCAR No. eCR201300032746, which was used to effect the transfer of title to the subject property, did not exist in the records of BIR Revenue District Office (RDO) No. 43B, West Pasig.
Both respondents Reyes and Josefa are liable for tax evasion for using fake or falsified CAR.
Buyer Josefa is sued for deficiency income tax liability amounting to P742,939.28, inclusive of surcharges and interest, and seller Reyes is sued for deficiency DST in the amount of P183,562.18, inclusive of surcharges and interests.
Aleth Florence and Natividad, on the other hand, allegedly paid CGT of P268,128.00 and DST of P67,035.00 for the sale of the subject condominium unit.
Access to the records of the BIR’s Revenue Accounting Division, however, showed no record of tax payments pertaining to the sales transaction.
Also, no record of payments appeared in the CBR System and TAS of the BIR’s ITS.
Thus, buyer YEO is liable for willful failure to withhold CGT and sellers Aleth Florence and Natividad are liable for deliberate failure to pay DST.
Further, RDO 43A, East Pasig, certified that it has never issued CAR 201000261997 in favor of respondent Aleth Florence.
Instead, the same CAR was issued to City and Land Developers Inc. as seller and Fenndhra D. Maidin as buyer.
Respondents Aleth Florence, Natividad and Yeo are liable for tax evasion for using fake or falsified CAR.
Buyer Yeo is sued for deficiency income tax liability amounting to P756,948.00, inclusive of surcharges and interest, and sellers Aleth Florence and Natividad are sued for deficiency DST in the amount of P204,500.00, inclusive of surcharges and interests.
The cases against Remedios S.A. Reyes and Vicente Josefa and Aleth Florence S. Yu, Natividad S. Yu and Imel Jade Y. Yeo are the 422nd and 423rd, respectively, filed under the RATE program of the BIR under the leadership of Commissioner Kim Jacinto-Henares.
These are also RATE cases of the Regional Investigation Division of Revenue Region 7, Quezon City.