The Court of Appeals. FILE PHOTO
MANILA, Philippines—The Court of Appeals on Wednesday allowed the government to pursue tax evasion case against a cardboard manufacturing firm who has tax liability worth millions.
In a two-page resolution, the appeals court’s former 12th division denied the motion for reconsideration filed by Chiat Sing Cardboard Corporation which seeks a reversal of the court’s May 31, 2013 decision.
The appeals court, through Associate Justice Angelita Gacutan, said the company failed to present new arguments that would warrant a reversal of their earlier ruling.
“A perusal of the instant motion for reconsideration reveals that no substantial arguments were presented that are meritorious enough to warrant the consideration much less reversal of our May 31, 2013 decision,” the appeals court pointed out.
Chiat Sing is engaged in the manufacture, import, export and wholesale trading of cardboard, paperboard, corrugated carton containers and similar products.
The BIR, in its complaint with the Department of Justice, accused Chiat Sing of underdeclaring its income in the amount of P10.6 million in 1999 and P5.7 million in 2000 from its underdeclared importation of raw materials and underdeclared sales of P160 million in 1999 and P113 million in 2000.
The BIR noted that Chiat Sing had actually sought relief from tax assessment through the BIR’s voluntary assessment program (VAP), which grants taxpayers the privilege of being given the last priority in the audit and investigation for erroneous payment of tax liabilities up to December 31, 2000.
But the BIR insisted that the VAP only stops the audit but does not waive the accruing tax payments.
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