The following graft and corruption cases stated below, and involving employees from the Bureau of Internal Revenue, had been put to a close and the cases decided with finality...
THE GAW INCOME TAX EVASION CASE
26 August 2010---The BIR charged before the Department of Justice billionaire Macario Lim Gaw Jr. of Corinthian Gardens Subdivision in Quezon City for willful evasion of income tax payment for the purchase of 10 lots in 2007 and 2008 amounting to P5.5 billion. Gaw purchased the lots for an aggregate amount of P4,119,183,500 and sold it for P8,419,621,441.12 eight months later. The charge came under the reactivated Run After Tax Evaders (RATE) program.
As of 31 March 2010, Gaw became the 39th top stockholder of the Highlands Prime Inc., a subsidiary of SM Investment Corp. His family owns the Macro LPG Company, the largest LPG supplier in the country, and has some holdings in an international packaging company, Mega Packaging Solutions.
The willful evasion charge came from his failure to pay his correct income tax in 2007 and his failure to supply accurate information in his income tax return in 2009. He also failed to file value added tax returns for 2008. Gaw deliberately evaded the payment of the 32 percent income tax and the 12-percent VAT on the sale of his 10 lots, sold to the Aruze Corp., one of the companies that developed the Pagcor City project (a Las Vegas-like entertainment complex on Macapagal Blvd. in Pasay City. He hid his acquisition of the lots and their subsequent sale by setting up multiple entities with separate Tax Identification Numbers in order to mask the who transaction to look like a capital gain, making it more difficult for the BIR to detect his other assets. [Source: JVC: "Prime stockholder faces tax evasion raps," Sun.Star Manila 26 August 2010]
THE CHINA STATE TAX EVASION CASE
12 August 2010---The BIR charged China State Philippines Construction Engineering Corp. (China Philippines) for failing to pay around P 712.74 million in taxes from 2003 to 2006. A subsiduary of China State Construction Corporation Limited (China Construction), it used the creditable withholding tax on VAT or income of another company of China State Construction when it did not have any contract with the Philippine government through the DPWH, even if the parent company had; thus the credit.
Respondent in the charge were China Philippines managing officer and chairman of the board Fu Yu Cheng, president and director Fu Chun Yan, secretary and director Gerald Telebrico, chief finance officer Huang Xin Yu, and vice president Wu Zhi Gang. Also charged was company accountant Daisy Guerrera for allegedly making false entries in the 2004 and 2006 income tax and VAT returns of the company. [Source: "Chinese firm in P713-M tax evasion rap," ABS-CBN News 12 August 2010]
THE GRAND C GRAPHICS TAX EVASION CASE
12 August 2010---The BIR charged the graphics firm Grand C Graphics for failing to pay tax deficiencies and non-remittance of taxes withheld. It had been filing 90 electronic returns without remitting the payments. Charged was company president Gloria dela Cruz and treasurer Deborah Cing. [Source: "Chinese firm in P713-M tax evasion rap," ABS-CBN News 12 August 2010]
THE DSM TAX EVASION CASE
30 July 2010---The BIR charged DSM Construction and Development Corporation employees--Dennis Marasigan (president), Eldrin Masigan (vice president), and Natalie Masigan (corporate secretary)--for supplying inaccurate informaton and not paying their possible in come tax return.
THE VILLARICA TAX EVASION CASE
30 July 2010---The Villarica Pawnshop chain, owned by W. Villarica, has yet to find the suspects.
Sources: "Construction firm execs face tax evation case," Sun-Star Cebu, 30 July 20.
