Pharmally has P3.4-B unsupported purchases, tax expert tells Senate panel

Out of the P7.2 billion purchases declared by Pharmally Pharmaceutical Corporations in its audited financial statement to the Bureau of Internal Revenue, only P3.8 billion have supporting documents, a tax expert said Thursday.

Based on the company’s income tax return, certified public accountant Mon Abrea said Pharmally declared P3.2 billion in its summary list of purchases and P600 million in its summary list of importations.

Due to this, Abrea said there are P3.4 billion unsupported purchases.

“Ibig sabihin P3.4 billion ay hindi naka-deklara kay BIR pero dineklara nila sa kanilang audited [financial statement] bilang purchases,” Abrea, a former BIR examiner, said at the Senate blue ribbon hearing.

(This means P3.4 billion was not declared to the BIR but they declared in their audited financial statement as purchases.)

“Kaya po siguro ang dapat po tanungin natin yung gumawa ng FS [kung] saan yan galing yung P3.4 billion,” he added.

(So we should ask the one who prepared the FS where they got the P3.4 billion.)

When asked by Senate blue ribbon panel chairperson Senator Richard Gordon if Pharmally falsified the P3.4 billion, Abrea said it was possible.

“Normally po pagka talagang walang supporting documents, either nilagay lang po nila para mapababa ang buwis or hindi po talaga totoo ang purchases,” he said.

(Normally, if there are no supporting documents, either they just added it to lower tax or the purchases are false.)

Abrea, however, clarified that he does not mean to attack Pharmally and only seeks clarification on their misstatements.

“Hindi po natin ginigisa ang Pharmally pero may malinaw po na material mistatements at dapat po linawin nila,” he said.

(We are not attacking Pharmally, but there are clear misstatements that they should clear up.)

The Senate panel is looking into the transfer of P42 billion COVID-19 funds from the Department of Health to the Department of Budget and Management Procurement Service.

This includes PS-DBM’s purchase of P8.6 billion worth of face masks, face shields, and PPEs from Pharmally Pharmaceutical Corporation, a firm that only had a paid-up capital of P625,000. — RSJ, GMA News