PNP supplier slapped with tax evasion rap

MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Thursday filed a P458-million tax evasion case against a supplier of the Philippine National Police (PNP).

Slapped with a complaint for wilful attempt to evade tax and deliberate failure to supply accurate information in her income tax and quarterly value added tax (VAT) returns for 2009 and 2010 is Gigie Junio Marpa, the sole proprietor of RKGK Enterprises engaged in the retail of books and office supplies.

The BIR also included in the complaint certified public accountant Danilo Lincod who certified the financial statements of Marpa for taxable years 2009 and 2010.

As per BIR’s investigation, Marpa’s declaration per tax returns as against income payments showed a substantial underdeclaration of income of more than 30 percent.

To validate its findings, the BIR sent an access letter to the PNP requesting for details of payments it made to Marpa. A comparison showed similar findings of underdeclaration.

Under Section 248 B of the Tax Code, an underdeclaration of taxable income by more than 30 percent is considered substantial underdeclaration, a basis for fraud tantamount to tax evasion.

Marpa was assessed to have an aggregate deficiency tax liability for years 2009 and 2010 amounting to P458.36 million, inclusive of surcharges and interests.