Court orders tax-dodging businessman to pay BIR P8 million

The Court of Tax Appeals has found a businessman guilty of tax evasion and ordered him to pay the Bureau of Internal Revenue millions in deficiency tax. In a 22-page decision penned by Associate Justice Lovell Bautista and promulgated on Oct. 17, the CTA’s Third Division found Pic N’ Pac Mart Inc. president Wong Yan Tak guilty beyond reasonable doubt of violating Section 255 of the National Internal Revenue Code. The appellate court sentenced him to one year’s imprisonment minimum and fined him P10,000. The court also ordered him to pay the BIR P3.55 million in deficiency value-added tax for 2002, plus a 20-percent delinquency interest per annum from Sept. 9, 2005. This brings the amount that the businessman has to pay the bureau to over P8 million. The CTA found existence of probable cause against Wong on July 23, 2008. He was served a warrant of arrest on Aug. 6, 2008. Wong entered a plea of not guilty on April 26, 2010, filed for bail and was released. “The issues that needed to be resolved were whether or not he is liable for violation of section 255 of the NIRC and whether or not he wilfully failed to pay the 2002 deficiency tax liabilities of Pic N’ Pac Mart Inc. as its responsible corporate officer,” wrote Bautista in his decision. Wong claimed that he was no longer connected to Pic N’ Pac Mart when Goldhill Holdings Philippines bought it in 2000. He also claimed that he was not properly served the BIR’s pre-assessment notice and final notice of assessment. However, the bureau said that the assessment notice was served at the same address where he was served the warrant and taken into custody. “[T]he court also finds that the accused’s claim that he voluntarily paid 10 percent of the alleged value added tax (VAT) liabilities in order to help the government with its collection drive to be illogical. A person who staunchly maintains his innocence would not voluntarily pay a single centavo of a tax liability,” the court said in its decision. Wong may still file for probation and avoid prison time if he opts not to appeal the case. However, if he loses at the CTA en banc, he will no longer be eligible for probation. — BM, GMA News