Philippine Tax Evasion Case Filed By BIR

By Perfecto Raymundo

The Bureau of Internal Revenue Thursday filed before the Dept. of Justice tax evasion cases worth P45.2 million against a building contractor and a businessman.

Charged were Engr. Ruben Uy Yu, owner of Ryu Construction with business address at 232 Cruzada, Legazpi City, Albay, and Elvinario A. Valenzuela, a registered taxpayer of Revenue District Office No. 33, Ermita-Malate-Port Area with address at No. 1227 Ma. Orosa St., Brgy. 670, Zone 072, Ermita, Manila.

Yu was charged with willful attempt to evade taxes and failing to supply the BIR with correct and accurate information for 2007 and 2008.

Valenzuela was charged for attempting to evade taxes and failing to file income tax returns in 2009 and 2010.

In a press conference, BIR Commissioner Kim S. Jacinto-Henares said based on third party information, Yu earned at least P14.33 million in 2007 and P52 million in 2008.

However, Yu declared an income of only P5.57 million in 2007 and P5.67 million in 2008.

Henares said the huge disparity between declared income and the income earned is more than 30% and constitutes prima facie evidence of fraud.

The BIR computed Yu’s deficiency income tax at P39.43 million, inclusive of surcharges and interests.

Likewise, Henares said the BIR based its case against Valenzuela on the so-called expenditure method that assumes that if a person’s expenses in a given year exceeds his income, the difference is considered as unreported income.

BIR’s investigation showed that Valenzuela bought a Toyota Hi-Ace Grandia and a Nissan Patrol for P1.68 million in 2009.

Valenzuela also spent close to P8 million in 2010 for a fire truck, a Hummer and a Grandview condominium unit with parking when he also invested in stocks and put up a restaurant.

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