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By Cynthia D. Balana /Inquirer News Service
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Date Posted: 05:55:31 07/23/05 Sat
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By Armand Nocum /Inquirer News Service
's message, "No tax trial yet? Blame BIR, says DoJ" on 05:49:54 07/23/05 Sat
BIR resumes drive vs tax cheats
First posted 06:01am (Mla time) July 22, 2005
By Cynthia D. Balana /Inquirer News Service
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AFTER a two-week hiatus following the resignation of its head, the Bureau of Internal Revenue Thursday revived its campaign against tax evaders by filing charges against an export company for failure to pay taxes amounting to P165 million over five years.
Mitsuko Phil. Corporation, a customs bonded warehouse engaged in the manufacture of Christmas decorations, lights and other novelty items for export, was charged before the Department of Justice for non-filing of income tax returns, withholding tax returns on compensation and expanded withholding tax from 1998 to 2002.
Named respondents in the complaint were King Lin Leu, the company president, and Yen Chan Liaw, treasurer.
The BIR found out that Mitsuko imported excessive quantities of resins -- the raw material for the manufacture of plastic products -- valued at P1.5 billion during the four-year period. It said resin was not a material used for Mitsuko's Christmas decor products.
The BIR also discovered that Mitsuko had been using a tax identification number, 000-697-5110, in various documents filed with the Bureau of Customs which belonged to another company.
"The Mitsuko officials' deliberate and repeated failure to file their company's income tax returns demonstrates their willful and unlawful intent not to declare their true income," said BIR commissioner Jose Mario Bunag.
He said the Securities and Exchange Commission also confirmed that the company failed to file the necessary general information sheet from 1999 to 2002, and the company's financial statements from 1999 to 2002.
BIR assistant commissioner Gerardo Flores said Mitsuko had annual earnings of P22 million and P21 million in 1998 and 1999. This rose to P637 million and P858 million for the taxable years 2001 and 2002, respectively.
Flores also said a tipster informed the BIR about Mitsuko's violations.
Mitsuko is the 27th corporate entity that has been charged by the BIR for tax evasion under the Operation RATE (Run After Tax Evaders) which was started by former Finance secretary Cesar Purisima.
The filing of charges against tax evaders was suspended for two weeks after the BIR commissioner Guillermo Parayno Jr. resigned.
Bunag, the BIR assistant commissioner for legal affairs, replaced Parayno.
Finance Undersecretary Emmanuel Bonoan said the tax evasion campaign would continue no matter who led the BIR or the finance department.
"We have institutionalized the program and we are glad that its existence is not dependent on the personalities at the helm," he said.
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