BIR's anti-tax evasion program goes after businessman, talent agent for P169.6M

The Bureau of Internal Revenue on Thursday filed separate tax evasion cases worth P169.6 million in total against a Davao del Norte businessman and a Makati-based talent agent. According to the BIR, Ernesto Yap, owner of hardware store Deco Commercial in Panabo City, Davao del Norte, made purchases from cement firm Holcim in 2009 worth P82.45 million and in 2010 worth P86.04 million. The bureau determined that Yap's actual income in 2009 was P96.84 million, nearly 20 times the amount he declared as his gross income, P4.85 million. In 2010, he declared only P5.3 million in gross income, but the BIR's investigation showed an actual income of at least P115.23 million. He also declared the same gross sales in his VAT returns for the year. The underdeclaration was more than 30 percent and is considered prima facie (at first appearance) evidence of fraud, said Deputy Commissioner Estela Sales. The BIR assessed Yap’s tax deficiency at P165.42 million for the two years. In the other case, the BIR said its investigation showed that Bernard Anacta, owner of Makati-based Monaco Models and Casting Agency, "wilfully failed" to declare his actual income for taxable year 2009 by declaring only P1.18 million. But according to its probe, the BIR said Anacta's real gross income for 2009 totalled P7.69 million, meaning he underdeclared by 552 percent or by P6.51 million. The BIR obtained Anacta's actual income through certifications of income payments from Anacta's clients. The income payments were also confirmed with the Lists of Payors from the BIR's Data Warehouse. The income payments received by Anacta came from: Avon Cosmetics (P1.261 million), BBDO Guerrero, Inc. (P376,000), Campaigns and Grey, Inc. (P183,000), Golden ABC Inc. (P769,000), Golden Arches Development Corp. (P296,000), Harrison Communications Inc. (P974,000), McCann Worldgroup Philippines Inc. (P2.644 million), Publicis Jimenez Basic Inc. (P531,000), SM Mart Inc. (P68,000), Southeast Asia Food (P175,000), United Laboratories Inc. (P349 million), and Universal Robina Corp. (P62,000). His underdeclaration was equivalent to an assessed tax deficiency of about P4.174 million, inclusive of surcharges and interests. According to the BIR, under Section 248 of the Tax Code, an underdeclaration of taxable income by more than 30 percent constitutes a prima facie case of fraud tantamount to tax evasion. The filings bring the number of cases filed under the BIR's Run After Tax Evaders (RATE) program just under 140. — BM, GMA News