BIR sues Binondo oil firm over P2.82B unpaid taxes

The Bureau of Internal Revenue filed on Thursday a complaint at the Department of Justice against an oil firm based in Binondo, Manila, over the non-payment of P2.82 billion-worth of taxes in 2009 and 2010.

Named as respondents in the complaint was the Cross Country Oil & Petroleum Corp., its president Arturo Zapata and treasurer Jacob Valeriano Jr.

BIR deputy commissioner Estela Sales, head of the agency’s legal group, said Cross Country owed the government income, value-added and expanded withholding taxes worth P2.82 billion, inclusive of increments, broken down into P963.58 million in 2009 and P1.86 billion in 2010.

BIR-Manila records of investigation showed Cross Country and its responsible corporate officers were served preliminary and final assessment notices, formal letters of demand with details of discrepancies, and as well as the final decision on disputed assessments.

“[The respondents] failed to either overturn or protest said assessments, hence making the same final, executory, and demandable,” Sales said.

The BIR subsequently issued collection letters, final notices before seizure, and warrants of distraint and garnishment, but these were ignored by the respondents.

“[Their] obstinate failure and continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government,” Sales added.

Cross Country and its officers were accused of wilful failure to pay taxes under Section 255 in relation to Sections 253 (d) and 256 the 1997 National Internal Revenue Code.

In 2010, the Bureau of Customs charged Cross Country and its officers for allegedly smuggling petroleum worth P8.5 billion.  The bank assets of some of its officers were also frozen by the Anti-Money Laundering Council in connection with the smuggling case. Jerome Aning, Philippine Daily Inquirer