Chemicals trading firm, 2 firm officers sued for failing to pay P203M in taxes

Bureau of Internal Revenue building. AFP FILE PHOTO

MANILA — The Bureau of Internal Revenue filed on Thursday, a criminal complaint at the Department of Justice, against a Quezon City-based chemicals trading firm and two of its top officers for failing to pay taxes worth more than P203 million from 2009 to 2013.

Charged were Uniglobal Chemical Industries Inc. (UCII) located on Mindanao Avenue, Quezon City; its president Suan Law; and treasurer Adrian Mark Law, for alleged willful attempt to evade or defeat tax, and deliberate failure to supply and correct accurate information in their income tax returns (ITRs), which are violations of Sections 254, 255, 253 (d) and 256 of the 1997 National Internal Revenue Code.

UCII is registered with the Securities and Exchange Commission as a domestic corporation and is engaged in wholesale business and trading chemicals.

BIR Commissioner Kim Henares, who led the filing of the complaint, said the tax agency earlier sent access letters requesting for certifications on the income payments made to UCII by its clients—Foodsphere Inc., Unilever Philippines, Kalinisan Chemicals Corp., Universal Robina Corp., General Milling Corp. and Bakels Philippines Inc.

The six companies issued certifications confirming income payments made to UCII amounting to a total of P734.34 million from 2009 to 2013.

After an evaluation and comparison of the gross income received for the period by UCII, as certified by its clients, BIR investigators discovered that UCII, through its corporate officers, deliberately failed to declare its correct tax base, Henares said.

The revenue agency said that UCII, as reported by its clients, received income payments totaling P64.89 million in 2009; P93.71 million in 2010, P166.75 million in 2011, P181.21 million in 2012, and P227.78 million in 2013.

The BIR said UCII declared in its ITRs gross sales of only P17.02 million in 2009, P17.27 million in 2010, P38.31 million in 2011, P171.11 million in 2012, and P202.97 million in 2013, thereby “substantially undeclaring” its taxable assets by P281.16 percent or P47.86 million in 2009, 442.69 percent or P76.44 million in 20102, P335.32 percent or P128.45 million in 2011, 5.90 percent or P10.10 million in 2012, and 12.22 percent or P24.81 million in 2013.

The company and its officers must now pay an estimated aggregate income liability totaling P203.63 million, inclusive of surcharges and interests, broken down into P38.92 million in 2009, P57.58 million in 2010, P89.04 million in 2011, P5.68 million in 2010 and P12.41 million in 2013.  SFM