BIR files P638.36 M tax evasion complaint vs luxury car importer

The Bureau of Internal Revenue (BIR) on Thursday filed P638.36-million tax evasion complaint with the Department of Justice against an importer of luxury cars.

Facing complaint for violation of the National Internal Revenue Code (NIRC) specifically for willful attempt to evade or defeat tax for taxable years 2013 and 2014 is Eddie Mitra Estallo Jr. for Amest Trading.

The BIR said as per records from the Bureau of Customs (BOC), total importations made by Amest Trading is P115.66-million in 2013 and P1.075-billion in 2014.

Investigation also showed that Estallo has no record with the BIR for Income Tax Returns (ITR) and Value Added Tax Returns (VAT) for 2014.

BIR also noted that based on a memorandum from the BIR Revenue Region No. 7, Estallo filed his monthly percentage tax returns for July to December 2013 and February to July 2014 but paid very minimal amount.

The BIR said Estallo made importations “amounting to hundreds of millions of pesos without declaring any income or source of income from 2013 to 2014 and in the prior years.”

“In the absence of any declared source of the expenses he incurred in his importations, the total amount of his importations… is considered his underdeclared income and must be subjected to income tax,” the BIR said.