BIR sues steel company, marine transporter for tax evasion

The Bureau of Internal Revenue on Thursday filed separate tax evasion charges before the Department of Justice against a steel company and a marine transport service tapped by 2Go Group Inc.  for supposedly evading tax duties totaling P750 million.

 

Stronghold Steel Corp. was accused of padding its expenses by 41.5 percent, which constitutes P699.04 million in expenses that were not paid with correct taxes in 2010, the bureau claimed.

 

A summary list of the purchases and alphalist of payees that are subject to an expanded withholding tax showed that Stronghold made purchases in 2010 from Alingod and One Core. 

 

"Investigators however established that the purchase transactions of Stronghold were fictitious. Fake receipts and invoices were used to record said purchases in its books of accounts and other accounting records representing substantial amounts of raw materials allegedly bought from Alingod and One Core," the BIR claimed.

 

Stronghold was sued for a total deficiency tax liability of P628.96 million.

 

Corporate officers of Alingod and One Core were also charged for willfully abetting in commission of a crime penalized under Section 253 (b) and 264 of the Tax Code.

 

Alingod was found to have issued fictitious receipts because it has not been issued any Authority to Print receipts and invoices, the BIR said. One Core issued official receipts and invoices, but failed to file any income tax or VAT returns, the bureau added.

 

In the case of Francisco Suzara, owner of JFM Marine and Industrial Services, the bureau charged him for willful attempt to evade or defeat tax, and deliberate failure to supply correct and accurate information in his income tax return and quarterly value-added tax returns for 2010.

 

JFM Services was engaged by 2Go Group Inc., formerly Aboitiz Transport System Corp., and Keppel Philippines Marine Inc., a preliminary investigation by the BIR showed.

 

Access letters were sent to 2Go and Keppel, requesting certifications of payment the two companies made to JFM Services in 2010. Investigators discovered the two companies paid JFM Services a total of P144.96 million in 2010. 

 

Suzara, however, only declared gross sales of P28.51 million in his 2010 ITR, according to the BIR.

 

The BIR claimed Suzara underdeclared his ITR by P116.45 million or 408.46 percent less than what he actually earned that year.

 

The bureau computed his total tax deficiency at P122.13 million, including surcharges and interests. – Mark Merueñas/VS, GMA News