BIR sues businessman for not reporting purchase of P92M house and lot
MANILA, Philippines — The Bureau of Internal Revenue filed on Thursday, a criminal complaint at the Department of Justice against a Quezon City trader over his company’s alleged unreported purchase of a P92.66-million house and lot in a posh subdivision.
The Jibetronic Trading Corp., together with its president Jimmy T. Tang, was charged with wilful attempt to evade or defeat payment of income tax and deliberate failure to file income tax for taxable year 2014, in violation of Sections 254 and 255, in relation to Sections 253 and 256 of the 1997 National Internal Revenue Code.
Tang is one of the current honorary presidents of the Filipino-Chinese Chambers Commerce of Industry. He served as president of the businessmen’s group from 1993 to 1997.
According to the BIR, JTC is engaged in the business of wholesale machinery, equipment and supplies. Although registered with the Security and Exchange Commission, JTC only registered with the BIR on Jan. 12, 2015.
BIR deputy commissioner and legal group head Estela Sales, said investigation showed JTC purchased from Keystone Real Estate Development Corp. a P92.66 million house and lot located in Wack-Wack, Greenhills, Mandaluyong City. The company tendered full payment of the property on Jan. 14, 2014, the same date the deed of absolute sale was executed.
Sales said documents gathered by the BIR showed that despite having a paid-up capital of only P0.5 million, JTC was able to purchase the Wack-Wack property amounting to P92.66 million.
Article continues after this advertisement“Clearly, in the absence of any declared source of the purchase price of P92.66 million, the said amount is an undeclared income of JTC and must be subjected to income tax,” the BIR official said.
JTC was sued for an aggregate deficiency income tax liability for taxable year 2014 amounting to P43.22 million, inclusive of penalties and surcharges. SFM
