BIR files tax complaints vs. two Webbs, Jollibee supplier

(Updated 3:36 p.m.) The Bureau of Internal Revenue (BIR) on Thursday said it filed a complaint-affidavit against two members of the Webb family before the Department of Justice (DOJ), its first tax evasion case for 2012.   The complaint was against Fritz Webb — son of former Senator Freddie Webb — and a certain Katherine Webb, who sits as president and treasurer, respectively, of Basement Salon Corp.   The bureau claimed that Basement Salon’s shop at Level Two of Rockwell Center’s Power Plant Mall in Makati City does not issue receipts to all its customers.   For days, Basement Salon was placed under surveillance by BIR investigators last year to check if it was complying with the Tax Code requirements on invoicing, said BIR Commissioner Kim Henares. "We basically sent [people] there to have their hair done and when they paid their fees, they were not issued  receipts," Henares said in a press conference.   Then, on Nov. 24, the investigators confiscated 25 job order slips and one booklet of official receipts, whose respective entries did not match, Henares noted.   “The investigators found that out of the 25 job order slips that were issued on November 24, 2011, only two were issued the corresponding official receipts — one to an unnamed customer in the amount of P1,210, and the other to a certain Chini Salonga for P6,000,” she said.   At least 23 transactions were not issued receipts that day, the BIR said.   “… Despite the mandatory requirement of the law requiring persons subject to an internal revenue tax to issue receipts or sales or commercial invoices…”  the respondents were issuing receipts only when customers demanded for one, the BIR claimed. "So there are 23 transactions with no receipts," Henares said, adding that the Webbs — if found guilty  — risk facing  two- to four-year sentences for each count of the violation.   "This is a criminal violation. This is a continuing process. We will continue to monitor them for tax laibilities. We will still go further and look into their books," said Henares.   The complaint against the Webbs is the 84th case filed by the BIR under its Run After Tax Evaders (RATE) program. Attempted to evade paying tax   The BIR also said it filed a criminal complaint against Zambales-based  Great Wall Promotionals Co. before the DOJ.   Great Wall Promotionals — with businessmen Carlito Pancho, Flordeliza Casimiro, George Co and Roberto Co as owners on record — willfully attempted to evade paying tax and did not the give correct and accurate information on its income tax return (ITR) in taxable year 2008, the bureau alleged in its case documents.   The company reported total sales of P1.47 million in its ITR and quarterly value added tax (VAT) returns in 2008.   However, the BIR claimed that the company actually received income payments of P266.48 million from Jollibee Foods Corp. that year.   As such, Great Wall Promotionals incurred P240.31 million in tax deficiency as well as interest and surcharges, including P173.81 million in income tax and P66.50 million in value added tax, the BIR also claimed. According to the BIR, Great Wall Promotionals supplies Jollibee with plastic utensils and food buckets for French fries. — MARK MERUEÑAS/VS, GMA News