BIR files tax evasion case vs president, treasurer of bus firm

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07:15 PM March 13th, 2014

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March 13th, 2014 07:15 PM

Bureau of Internal Revenue building

MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Thursday filed tax evasion complaint before the Department of Justice (DOJ) against the head of a bus company.

Facing a complaint for willful attempt to evade or defeat taxes and deliberate failure to file quarterly percentage tax returns (PTRs) for taxable years 2010 to 2012 are German Espiritu Liner President Cecilio German and Secretary/Treasurer Erlinda German.

The bus company is a grantee of Certificates of Public Convenience and operates as a public transport for passengers along the route of Bulacan (Bulacan) to Cubao (Quezon City) and along the route of Bulacan (Bulacan) to Divisoria (Manila).

In its complaint, the bus firm initially filed PTRs and paid percentage taxes (PT). However, for taxable years 2010, 2011 and 2012, the bus company did not file PTRs and did not pay PT. Instead, it filed VAT returns and paid the corresponding VAT Payable.

Also, German Espiritu left blank the space provided for “line of business” in all its VAT returns filed with the BIR.

“By repeatedly and deliberately not disclosing itself as engaged in the business of transport of passengers in its VAT returns filed with the BIR,  German Espiritu took advantage of the creditable VAT system as a scheme to evade the payment of correct internal revenue taxes…” the BIR said in its complaint.

Because of their actions, BIR chief Kim Henares said the bus firm’s tax liability amounted to P4.20 million inclusive of surcharges and interest.

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