The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) a P215.07-million tax evasion case against a caterer of the Bureau of Corrections (BuCor).
The BuCor is an attached agency of the DOJ.
Charged was Ziegfried Loo Tian, sole proprietor of Golden Taste Food Services & General Merchandising (Golden Taste) with business address at No. 1013 Juan Luna St., Brgy. 27 Zone 4, Tondo, Manila.
Tian is engaged in the business of food catering and wholesale of general merchandise.
In a press conference, BIR Commissioner Kim S. Jacinto-Henares said that they charged Tian for willful attempt to evade or defeat payment of income and value added tax for taxable year (TY) 2010 and 2011, for deliberate failure to supply correct and accurate information in his Income Tax Return (ITR) for TY 2010 and Quarterly Value Added Tax (VAT) Returns for TY 2010 and 2011, and for deliberate failure to file his ITR for TY 2011, all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997 as amended (Tax Code).
Henares said that the case against Tian arose from a “confidential information” received by the BIR denouncing him for tax evasion perpetrated by not declaring the income he realized from his business Golden Taste.
Investigation show that Tian was contracted by the BuCor to render catering services from Aug. 17, 2010 to Jan. 16, 2012 for inmates at the Correctional Institute for Women (CIW) in Mandaluyong City and Davao City, Reception and Diagnostic Center, Muntinlupa Juvenile & Training Center, and the Medium and Minimum Security Compounds of the National Bilibid Prisons in Muntinlupa City.
Based on a certification issued by the BuCor, Tian received a total payment of P183.23 million in 2010 and P185.48 million in 2011 for its services rendered.
Records of the BIR show that Tian filed his ITR for TY 2010 but failed to file the same return for TY 2011. His 2010 ITR showed no amount or figure for purposes of filing a valid return except the words “Pls. see Attached.”
However, no financial statements and other pertinent papers were attached to the said return.
Tian filed his VAT returns for TY 2010 and 2011.
However, an examination of the said returns, showed that no amount or figure was shown except the word “Exempt.”
Likewise, Tian’s input taxes were not reported in the information returns.
Henares said that Tian was assessed a total deficiency tax liability for TY 2010 and 2011 in the aggregate amount of P215.07 million, inclusive of surcharges and interests, broken down as Income Tax of P173 million, and VAT of P42.07 million.