The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) at least P226.9 million worth of tax cases against the Genevieve Gozum chain of boutiques and its owners.
The BIR found Globe Mallow International Enterprises Corp. (GMIEC), the company that runs the Genevieve Gozum boutiques, to have been bloating its expenses, claiming false input value-added tax, thereby under-declaring its income and VAT.
GMIEC falsely claimed to have bought P223.42 million from Fine & Fancy Fabrics Center, the BIR said.
Fine & Fancy denied having any business dealings with GMIEC and asked the latter to rectify its claims with the BIR. When asked to explain the discrepancy, GMIEC did not respond to the BIR.
The value-added tax system allows the BIR to track purchases between buyers and their suppliers. The system flagged the discrepancy in the submissions of GMIEC and Fine and Fancy.
The BIR’s assessed the total tax liability of GMIEC at P226.9 million, including surcharge and interest, broken down to P60.69 million in VAT and P166.3 million in income tax.
The BIR asked the DOJ to charge GMIEC and its officers, Genoveva Gozum and Gene Gozum, for violations of National Internal Revenue Code, or for evading taxes and failing to supply the BIR with correct and accurate information.
Meanwhile, the BIR has also sued Joycee Ann Jona de Josep, owner of the Bloomers Petshop and Clinic at the Harrison Plaza mall in Manila, for allegedly printing its “official” receipts and/or commercial invoices without authority from the BIR and for failing to issue duly registered receipts.
The BIR implemented a mission order on Bloomers Petshop and Clinic on Nov. 18, 2011, wherein a BIR officer posed as a customer.