BIR files P2.85B tax-evasion raps against 2 Cebu traders

MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Thursday filed a tax evasion complaint before the Department of Justice against an Iloilo businessman and a gold trader from Cebu.

Facing a complaint for violation of the National Internal Revenue Code (NIRC) are Avelino R. Aw-Yong and gold trader Junrie Daitol Tenorio.

Aw-Yong is facing two counts of willful attempt to evade or defeat payment of income tax, and two counts of willful failure to supply correct and accurate information in his income tax returns for taxable years 2009 and 2010, in violation of Sections 254 and 255 of the NIRC.

Aw-Yong is the owner/proprietor of Iloilo Izeem Commercial. An investigation showed that Aw-Yong received payments amounting to P20.33 million for taxable year 2009 and P23.43 million for taxable year 2010. The said amounts were summed up from information gathered from various government agencies, offices, schools, universities, and other private institutions which had sales transactions with Aw-Yong.

But a verification by the BIR showed that he only declared sales amounting to P5.87 million and P6.39 million for taxable years 2009 and 2010, respectively.

Under Section 248 (B) of the Tax Code, a substantial underdeclaration of more than 30 percent constitutes prima facie evidence of fraud.

He was assessed with a total deficiency income tax worth P18.12 million, inclusive of surcharges and interest for the two-year period.

Tenorio, meanwhile, was slapped with five counts of willful attempt to evade or defeat tax, 15 counts of willful failure to file quarterly income tax returns (ITRs), and five counts of willful failure to file annual ITRs for taxable years 2005 to 2009.

Earlier the Bangko Sentral ng Pilipinas (BSP) sent to the BIR a list of individuals who had gold transactions with it including Tenorio, who indicated that he had sold gold to BSP amounting to P3.95 billion during the five-year period in question.

Despite receiving taxable income from his gold transactions with the BSP, however, Tenorio failed to file his annual ITRs for taxable years 2005 to 2009. Not only did he fail to file the required tax returns; he also did not pay his income taxes due on the said taxable years.

Tenorio was assessed deficiency income tax for taxable years 2005 to 2009 in the estimated aggregate amount of P2.67 billion, inclusive of surcharges and interests.