Del Monte PHL denies alleged tax irregularities

On the heels of news reports that its local unit Del Monte Philippines Inc. (DMPI) has allegedly committed tax irregularities, food and beverage multinational conglomerate Del Monte Pacific Ltd. (DMPL) denied the allegations as it presented its "correct and reasonable" audited taxable income during the questioned three-year period.

In a filing to the Philippine Stoc Exchange, DMPL said the tax assessments on DMPI presented in news reports—based on a plunder complaint filed against Bureau of Internal Revenue (BIR) Commissioner Caesar Dulay and 17 other BIR officials before the Office of the Ombudsman for allegedly reducing the tax liabilities of the company—were "outrageous" when compared to its revenues from 2011 to 2013.

"For 93 years that it has been operating in the Philippines, DMPI has been a loyal corporate citizen and has been diligently paying its taxes," the company noted.

"For the first time in DMPI’s long corporate existence, we heard about a controversy involving absurd tax assessments on the company for 2011, 2012 and 2013 totaling P30 billion. It was mentioned that DMPI was assessed P21 billion in 2011, P3.43 billion in 2012 and P5.2 billion in 2013," it added.

Dulay allegedly allowed DMPI to pay only P65.4 million for the said taxable years despite the assessed P30-billion tax liabilities.

Dulay said the BIR will come out with a statement on the allegations next week.

The DMPL noted that the tax assessment of P21 billion for 2011, P3.4 billion in 2012, and P5.2 billion in 2013 appear to be "outrageous when compared to DMPI’s revenues during those years."

"On the other hand, the amount of income taxes paid by the company is shown to be correct and reasonable on the basis of its audited taxable income," DMPL said.

For 2011, DMPL said that DMPI paid P236 million of income tax from its audited taxable income of P678.3 million for the said period.

For 2012, the company said it paid P408.9 million of income for a taxable income P1.56 billion, and in 2013 it paid P534.9 million for an income of P1.83 billion.

"Del Monte Philippines trusts that this announcement has shed light on the matter and stands ready to fully cooperate in any government inquiry," the company emphasized. —John Ted Cordero/ALG, GMA News