BIR INFORMER RECEIVED THE REWARD

Quezon City, May 31, 2011 - The Bureau of Internal Revenue today awarded the cash bounty to the informer who led police authorities to the capture of gunman Armando Cariño who shot to death Revenue District Officer Marcelino Yap.

 The BIR official was gunned down in cold blood while he was on his way to work in Marikina last February 17, 2011. Cariño was positively identified by his nephew, Andy, as the triggerman in the slaying which happened right in front of the BIR official’s office.

 Commissioner Kim S. Jacinto-Henares handed over the P500,000.00 cash to the unnamed informer in the presence of police officials - Police Superintendent Christopher Laxa and Police Chief Inspector Agosto Daskeo - and BIR Financial Service Assistant Commissioner Zenaida B. Chang.  (reytdlc)

BIR cannot ignore BSP gold trade mine, sues 3 more traders for 5.9 B tax evasion

Considering that the billions of sales transactions and taxes involved were too “large” a sum of money to be ignored, the Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) separate complaints against three (3) more gold traders – AURELIO S. BARING (Baring), REX CHUA CO HO (Co Ho) and REMEGIO B. DESCALSOTA, JR. (Descalsota, Jr.) - for committing acts constituting violations of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended.

          It can be remembered that last 28 April 2011, the tax agency filed with the DOJ tax evasion cases against four (4) gold traders involving P4.76 billion in deficiency income taxes spread in various years from 2005 to 2009.

Like the four (4) previous respondents, the abovementioned three (3) were included in the lists given by the Bangko Sentral ng Pilipinas (BSP) sometime in 2010 to the BIR. Said lists contained the names of individuals who had gold and/or silver transactions with the BSP.

Investigation by the BIR revealed that the three respondents sold (refined) gold and some silver to the BSP in various years from 2005 to 2009 amounting to billions of pesos. A certification of the total sales and net payments received by each of them and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold/silver sold they signed were obtained by the BIR from BSP.

And despite receiving taxable income from their transactions with the BSP, they either failed to file their Tax Returns or grossly under-declared their gross income by more than 30% in various years from 2005 to 2009. They likewise failed pay their income taxes due on the same taxable years.

Baring was charged with five (5) counts of attempt to evade or defeat tax, fifteen (15) counts of failure to file Quarterly Income Tax Returns, and five (5) counts of failure to file Annual Income Tax Returns and to pay tax.

He was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P2.22 billion, inclusive of surcharges and interests, broken down as follows: P555.35 million – 2005; P649.43 million – 2006; P5179.04 million – 2007; P823.21 million – 2008; and P16.11 million - 2009.

Co Ho, on the other hand, was sued for five (5) counts of attempt to evade or defeat tax and five (5) counts of willful failure to supply correct and accurate information in his Annual Income Tax Returns (ITRs) resulting to gross under-declaration of taxable income of more than 30% tantamount to fraud or fraudulent returns.

He was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P3.1 billion, inclusive of surcharges and interests, broken down as follows: P169.22 million – 2005; P309.54 million – 2006; P844.97 million – 2007; P706.74 million – 2008; and P1,067.71 million - 2009.

Lastly, Descalsota, Jr. was also slapped with five (5) counts of attempt to evade or defeat tax and five (5) counts of willful failure to supply correct and accurate information in his Annual Income Tax Returns (ITRs) which, like Co Ho, led to substantial under-declaration of taxable income by more than 30% tantamount to fraud or fraudulent returns.

He incurred deficiency income taxes for five (5) taxable years in the aggregate amount of P592.8 million, inclusive of surcharges and interests, broken down as follows: P153.34 million – 2005; P136.18 million – 2006; P117.47 million – 2007; P117.95 million – 2008; and P67.86 million - 2009.

The cases against AURELIO S. BARING, REX CHUA CO HO, and REMEGIO B. DESCALSOTA, JR. were the forty-third (43rd), forty-fourth (44^th) and forty-fifth (45^th) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)

BIR slaps Cavite gold trader with 593M tax evasion

The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against REMEGIO B. DESCALSOTA, JR. (Descalsota, Jr.) for five (5) counts of attempt to evade or defeat tax and five (5) counts of willful failure to supply correct and accurate information in his Annual Income Tax Returns (ITRs) and to pay the correct taxes, in violation of Sections 254 and 255 of the Tax Code.

Sometime in August 2010, Descalsota, Jr., a resident of B7-L30 Camella Homes, San Nicolas, Bacoor, Cavite, was included in the list given by the Bangko Sentral ng Pilipinas (BSP) to the BIR containing the names of individuals who had gold transactions with the BSP. He is a registered taxpayer of Revenue District No. 58, Batangas City engaged in the business of pawnshop operation under the trade name MRPC Pawnshop.

Descalsota, Jr. sold (refined) gold amounting to P861.16 million to BSP in the years 2005 to 2009. A certification of the total sales and net payments received by Descalsota, Jr. and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold sold signed by him were obtained by the BIR from BSP.

Investigation by the BIR disclosed that Co Ho willfully failed to declare all his income in his Annual ITRs for taxable years 2005 to 2009. A comparison of the total gross income he declared in his ITRs amounting to P352,760.50 with the net payment he received from BSP in the years in question revealed he grossly under-declared his income by more than 30%.

Under Sec. 248 of the Tax Code, an under-declaration of taxable income by more than 30% constitutes a prima facie case of fraud.

Descalsota, Jr. was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P592.8 million, inclusive of surcharges and interests, broken down as follows: P153.34 million – 2005; P136.18 million – 2006; P117.47 million – 2007; P117.95 million – 2008; and P67.86 million - 2009.

The case against REMEGIO B. DESCALSOTA, JR. is the forty-fifth (45^th) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)

BIR trades Ongpin gold and silver merchant for 3.1B tax evasion

The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against REX CHUA CO HO (Co Ho) for five (5) counts of attempt to evade or defeat tax and five (5) counts of willful failure to supply correct and accurate information in his Annual Income Tax Returns (ITRs) and to pay the correct taxes, in violation of Sections 254 and 255 of the Tax Code.

Co Ho, a registered taxpayer with business address at No. 952 Ongpin Street, Sta. Cruz, Manila was included in the list given in November 30, 2010 by the Bangko Sentral ng Pilipinas (BSP) to the BIR containing the names of individuals who had gold and/or silver transactions with the BSP.

Documents show that Co Ho sold to the BSP in the years 2005 to 2009 (refined) gold and silver amounting to P4.95 billion and P6,470.30, respectively. A certification of the total sales and net payments received by Co Ho and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold and silver sold signed by him were obtained by the BIR from BSP.

Investigation by the BIR disclosed that Co Ho willfully failed to declare all his income in his Annual ITRs for taxable years 2005 to 2009. A comparison of the gross income he declared in his ITRs with the net payment he received from BSP in the years in question revealed he grossly under-declared his income by more than 30%.

Under Sec. 248 of the Tax Code, an under-declaration of taxable income by more than 30% constitutes a prima facie case of fraud.

Co Ho was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P3.1 billion, inclusive of surcharges and interests, broken down as follows: P169.22 million – 2005; P309.54 million – 2006; P844.97 million – 2007; P706.74 million – 2008; and P1,067.71 million - 2009.

The case against REX CHUA CO HO is the forty-fourth (44^th ) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)

BIR digs BSP gold trade mine, sues Unregistered Bulacan trader for 2.22B tax evasion

The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against another Bulacan gold trader – AURELIO S. BARING – (Baring) for five (5) counts of attempt to evade or defeat tax, fifteen (15) counts of failure to file Quarterly Income Tax Returns, and five (5) counts of failure to file Annual Income Tax Returns and to pay tax, in violation of Sections 254 and 255 of the Tax Code.

Sometime in August 2010, Baring was included in the list given by the Bangko Sentral ng Pilipinas (BSP) to the BIR containing the names of individuals who had gold transactions with the BSP.

Investigation revealed that Baring listed his addresses at 91 St. James LFS, Viente Reales, Valenzuela City; Tugatog, Valenzuela City; and Saluysoy, Meycauayan, Bulacan. He was not registered with the BIR and neither did he register with the Department of Trade and Industry.

Furthermore, the BIR discovered that Baring sold (refined) gold to the BSP in the years 2005 to 2009 amounting to P3.21 billion. A certification of the total sales and net payments received by Baring and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold sold signed by him were obtained by the BIR from BSP.

Despite receiving taxable income from his gold transactions with the BSP, Baring however failed to file his Quarterly and Annual Income Tax Returns for taxable years 2005 to 2009. Not only did he fail to file twenty (20) tax returns during the period in question, he also did not pay his income taxes due on the same taxable years.

Baring was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P2.22 billion, inclusive of surcharges and interests, broken down as follows: P555.35 million – 2005; P649.43 million – 2006; P179.04 million – 2007; P823.21 million – 2008; and P16.11 million - 2009.

          The case against AURELIO S. BARING is the forty-third (43rd) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)

BIR Re-implements (eSales) System

Starting January 31, 2011, the Bureau of Internal Revenue made available the Electronic Sales and Reporting (eSales) System to Large Taxpayers pursuant to Revenue Memorandum Circular (RMC) No. 92-2010 which lifted the suspension prescribed under RMC No. 36-2005. 

eSales system which is the process of reporting the gross monthly sales of taxpayers engaged in business using Cash Register Machines/ Point of Sales (CRM/POS) Machines or any other similar device through the web was implemented under Revenue Regulations (RR) No. 5-2005 but was suspended in August 2005 due to enhancements in the system.

The system has two sub-modules that taxpayers can use. The online encoding and the File Upload. Online encoding is recommended if only a few sales report are submitted while  Upload File is used when submitting sales report for numerous machines.  

This system is accessible via the eSales icon of the BIR website at http://www.bir.gov.ph.  

The bureau re-implemented on a pilot mode this system wherein initial reports covering sales per machine for the month of January 2011 shall be due on February 10, 2011.

The eSales system initially covers all Large Taxpayers registered under the Large Taxpayers Service- Regular and Excise.      

According to RMC 92-2010, all guidelines and policies specified under RR No. 5-2005 shall be followed except for the reporting of sales which shall only be done through the web channel.

Also the issuance specifies that all Large Taxpayers using CRM/POS and other sales machines are required to enroll their authorized user in the eSales web application in order to access the eSales system and only one (1) user shall be allowed for each Taxpayer Identification Number (TIN).    

With the eSales System in-place, the bureau shall be able to effectively monitor the sales generated from CRM/POS Machines and any machine generating receipts/invoices.-30- Reymarie T. Dela Cruz, Chief, TIED/Lucita G. Rodriguez, ACIR, TAS