BIR files tax evasion rap vs contractor

MANILA, Philippines – The Bureau of Internal Revenue on Thursday filed with the Department of Justice (DoJ) a tax evasion complaint worth over P30-million against a contractor in Manila.

Facing one count of willful attempt to evade or defeat tax and one count of willful failure to file quarterly income tax returns for 2009 is Oscar Repuyan Badillo.

BIR records showed that Badillo was paid P49.22 million in 2009 by the City of Manila for the construction of a three storey building of F. Balagtas Elementary School (Phase III) based on checks and disbursements vouchers from the City of Manila, together with the Official Receipt issued by Royal Trust Construction. Badillo, however, failed to declare said taxable income with the BIR when he failed to file his ITR for taxable year 2009.

Evaluation of the records showed that Badillo filed an ITR for taxable year 2009 which turned out to be fake and spurious.

“This fraudulent scheme obviously intended to evade or defeat tax and the payment thereof was uncovered by special investigators,” BIR Commissioner Kim Henares said.

The said return did not go through the Collection and Bank Reconciliation (CBR) system and batching process, making the ITR spurious and/or not filed.

For failing to report taxable income received, Badillo was assessed a total deficiency income tax liability for taxable year 2009 amounting to P30.35 million, inclusive of surcharges and interests.