The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) a P240.31-million tax evasion case against Great Wall Promotionals Company, Limited (Great Wall) and its executives, the supplier of Jollibee Foods Corporation (Jollibee).
In a press conference, BIR Commissioner Kim Jacinto-Henares said that Great Wall and its officials failed to supply correct information in its Income Tax Return (ITR) for taxable year 2008 in violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC) of 1997.
Great Wall is a partnership duly registered with the Securities and Exchange Commission (SEC) whose principal office is located at National Rd., Sta. Cruz, Zambales.
Henares identified those charged as Carlito Pancho, Flordeliza Casimiro, George Co, Jr. and Roberto Co.
Investigation showed that Great Wall had reported total sales of P1.47 million in its ITR and Quarterly Value Added Tax (VAT) returns for taxable year 2008.
However, verification of its reported income with Jollibee showed that Great Wall received from the former income payment amounting to P266.48 million.
Comparing the information received from Jollibee with its declarations with the BIR, investigators found that Great Wall deliberately failed to declare its correct tax base by substantially underdeclaring its income for 2008 by 18,076.26% or by P265.01 million.
Under Section 248 (B) of the NIRC, a substantial underdeclaration of more than 30% constitutes prima facie evidence of fraud tantamount to tax evasion.
Henares said that for taxable year 2008, Great Wall was slapped with a total deficiency tax assessment of P240.31 million, inclusive of surcharges and interests, broken down as P173.81 million in Income Tax; and P66.50 million in VAT.
The case against Great Wall, Pancho, Casimiro, George Co, and Roberto Co is the 85th filed under the BIR’s Run After Tax Evaders (RATE) program. (PNA)
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