Fernwood Gardens heir sued by BIR over P35M unpaid taxes

The Bureau of Internal Revenue filed at the Department of Justice, on Thursday, a criminal complaint for non-payment of taxes against the heir and administrator of the estate of Alfonso de Veyra Sr., late owner of the Quezon City-based wedding venue provider Fernwood Gardens.

Sued before the DOJ was De Veyra’s son Alfonso Jr., for alleged willful attempt to evade or defeat tax, and alleged deliberate failure to file estate tax return and pay estate tax for the year 2006, all in violation of Sections 254 and 255 of the 1997 National Internal Revenue Code.

The BIR said the elder De Veyra, a widower, died intestate and left behind properties consisting of the land where Fernwood Gardens stood, and several improvements. His estate consisted of the bulk of a 3,713-square-meter conjugal land worth P54.15 million as well as four exclusive properties consisting of improvements on the said lot with a total market value of P4.69 million.

BIR deputy commissioner Estela Sales, head of the revenue agency’s legal group, said under the tax code, the executor or the administrator of the estate of a deceased person should file the estate tax return and pay the corresponding estate taxes.

The official said the bureau’s records showed the younger Veloso did not file a death notice or estate tax return and did not pay the estate taxes.

“Income tax returns for the taxable period from 2006 to 2014, though, were filed using the taxpayer identification number of [Alfonso Sr.] as if he was still alive,” Sales said.

Alfonso Jr. was sued for an aggregate deficiency estate tax liability for taxable year 2006 amounting to P35.38 million, including surcharges and interest. Jerome Aning, Philippine Daily Inquirer