Rotarians: BIR jumped gun in tax evasion case

The case filed against them by the Bureau of Internal Revenue (BIR) for tax evasion to the tune of P47 million was “premature and baseless,” eight former officers of the Makati Rotary Club Foundation Inc. (MRCFI) said Sunday.

Speaking through their counsel, former Solicitor General Frank Chavez, the eight said they never received a Notice for Informal Conference, which is a written notice informing a taxpayer of audit findings on his book of accounts and accounting record, including any tax deficiencies he may have incurred.

In a statement, Chavez said his clients also never received a Pre-Assessment Notice, an official communication from the BIR informing a taxpayer of a revenue officer’s audit findings.

He said they were also not subsequently issued a Notice of Assessment, which is a declaration of a tax deficiency due from a taxpayer who fails to respond to a Pre-Assessment Notice.

Chavez said that, in addition, the BIR did not send out a Formal Letter of Demand, which calls for the payment of a tax deficiency and which should state the facts, the law, rules and regulations or jurisprudence on which the assessment was based.

“The records show the MRCFI has been consistently cooperating with the BIR. It has complied with all requests to produce documents required by the BIR,” he said.

On Thursday, the BIR filed a case in the Department of Justice against the MRCFI and 14 of its former officers for allegedly passing off as a donation part of the proceeds from the lease of a 20,063-square meter foundation property in Parañaque City from 2001 to 2010.

Those charged, aside from the foundation itself, were Felix Amparo, Jose Bengzon III, Federico Borromeo Jr., Larry Boyer, Juan Carlos Jr., Ramon Diokno, Tomas de Leon, Robert Kuan, Ricardo Librea, Conrado Marty, Alfredo Parungao, J. Antonio Quila, Wellington Soong and Jesus Tambunting.

Chavez represents the foundation and eight of the respondents.

According to the lawyer, the BIR’s latest communication to the MRCFI, dated February 14, asked the foundation to submit various tax documents and its book of accounts.

Two days later, the BIR, “in obvious bad faith and malice and in clear violation of due process,” announced that it had filed a case, Chavez said. Jerome Aning