Cake supplier in Makati slapped with tax evasion case
Lawyer Renato Bondal presents assorted cakes to argue how the Binays allegedly overprice facilities and services. Photo by JOSEPH VIDAL /Senate PRIB
Ernesto Mercado INQUIRER PHOTO / NIÑO JESUS ORBETA
MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Thursday filed a P46.6-million tax evasion complaint in the Department of Justice against the birthday cake supplier and food caterer of the Ospital ng Makati (Osmak) and the Makati City Hall.
KimTun Chong of Cups and Mugs Kitchenette is facing a complaint for violation of the National Internal Revenue Code of 1997 for underdeclaring his income tax for 2009 to 2011.
The complaint said Chong was paid P107.64 million by the city government of Makati for three contracts broken down into P35.94 million for 2009, P42.11 million for 2010 and P29.59 million for 2011 for the supply of cakes given during birthday celebration of senior citizens and for catering food at the city hall cafeteria and Osmak.
Despite earning a large amount of income for the said taxable years, the complaint said Chong “substantially underdeclared his correct income and deliberately failed to pay the correct taxes.”
“Records of the BIR showed that Chong declared a total gross income of only P43.23 million in his annual income tax return for the said three years broken down into P14.17 million for 2009, P12.97 million for 2010 and P16.08 million for 2011. He thus underdeclared his correct income by 153.59 percent or P21.77 million in 2009, P29.14 million or 224.59 percent in 2010 and P13.51 million or 83.96 percent in 2011,” the BIR said.
The aggregate income tax liability of Chong stood at P46.60 million, inclusive of surcharges and interests, broken down into P16.96 million for 2009, P20.84 million in 2010 and P8.80 million in 2011.
Mugs and Kitchenette was mentioned by former Makati Vice Mayor Ernesto Mercado during a Senate hearing as a “front” to hide the numerous businesses of Vice President Jejomar Binay, a former political ally.
Last week, the BIR also filed tax evasion charges against businessman James Tiu and his wife Ann Loraine Buencamino Tiu for an aggregate tax liability amounting to P39.03 million, inclusive of surcharges and interests for underdeclaration of their income.
James is the brother of businessman Antonio “Tony” Tiu who was accused of being a Binay dummy.
Tiu and his wife are one of the main campaign contributors to Binay’s 2010 vice presidential run.
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