MANILA, Philippines—A Makati City-based business process outsourcing (BPO) company was sued on Thursday by the Bureau of Internal Revenue (BIR) after it failed to collect and remit over P195 million in withholding taxes.
Internal Revenue Commissioner Kim Jacinto-Henares led the filing of a tax suit in the Department of Justice against Sencor Inc. and its corporate officers led by its president George Vincent Martel, executive vice president Michael Victor Martel, director Olga Martel, treasurer Katrina Olga Martel and secretary Tessielin Alvarez.
According to BIR-Makati records, Sencor is a local corporation registered with the Securities and Exchange Commission and the BIR. It holds office on Ayala Avenue.
Henares said that Sencor, which was authorized by the revenue agency to pay taxes electronically, failed to collect and report the withholding taxes on its supplies and workers’ compensation from March 31, 2008, to Aug. 31, 2014.
The amount in question totaled P195.87 million, inclusive of surcharges, interest and compromise penalties.
“[Our] investigators discovered that Sencor electronically filed its withholding tax returns but deliberately, willfully and continuously failed to remit and/or pay the corresponding withholding taxes due thereon, whether electronically or manually, resulting [in] considerable revenue losses for the government,” Henares said in a statement.
She added that Sencor failed to settle its obligations despite repeated demand letters, prompting the revenue agency to take it to court. The case against it and its officials are the 319th to be filed under the BIR’s “Run After Tax Evaders” program.
Also sued by the BIR were three businessmen—Tan Chiong Sy Co, a printing press owner from Malabon City; Richard Chua, a motorcycle seller from Valenzuela City; and Quezon City-based businessman Raymond Babst.
According to the agency, Tan failed to pay P8.30 million in taxes, including penalties and surcharges, in 2008 while Chua owed P8.60 million in taxes, inclusive of increments, for the year 2007.
Babst was accused of failing to declare his income from 2009 to 2011 although he sold a condominium unit worth P2.9 million, bought a house and lot worth P3.16 million, and entered into a distributorship agreement with a soft drink company that earned him about P42 million.
Babst was sued for an aggregate income tax liability totaling P23.82 million, inclusive of surcharges and interest.