BIR expands Philrem probe

Philrem president Salud Bautista speaks during the Senate investigation on the $81-million money laundering anomaly. MARIANNE BERMUDEZ / INQUIRER

THE BUREAU of Internal Revenue (BIR) is digging deeper into the tax status of Philrem Service Corp., the remittance firm embroiled in the laundering of $81 million stolen from Bangladesh’s central bank.

Revenue Commissioner Kim Henares told reporters the BIR’s investigation of Philrem was “continuing.”

Henares noted that the tax evasion case filed against Philrem last week was based on a very clear violation.

The BIR filed a P35.6-million tax evasion case against Philrem for nonpayment of gross receipts tax and failure to file percentage tax returns since 2005 that stemmed from its decision not to update its registration with the bureau.

Philrem’s previous registration with the BIR was as a land transport operator. While the company later amended its registration with the Securities and Exchange Commission as a money remittance service provider, it did not update its BIR registration.

As a remittance agent also registered with the Bangko Sentral ng Pilipinas, the firm should have been filing percentage tax returns and paying gross receipts tax. Instead, it has been filing value-added tax returns.

“The gross failure of Philrem to register, declare and pay the gross receipts tax showed a clear intent and purpose on its part to evade the payment of the correct amount of taxes. Further, its failure to update its registration with the BIR made it liable for unlawful pursuit of business,” the BIR  said last week.

As for the income taxes filed by the company and its top officials, Henares said the BIR would audit the tax returns.

Official receipts issued by the firm would also be subject to audit, she said. Ben O. de Vera