MANILA — The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) a Php36.14-million tax evasion case against a Makati City-based Electronic Filing and Payment System (eFPS) company and its executives.
Charged were Ensogo, Inc. (Ensogo) and its president Krit D. Srivorakul and treasurer Xelynne Q. De Lara.
In a press conference, BIR Commissioner Kim S. Jacinto-Henares said that they charged the respondents for willful failure to remit tax and deliberate failure to pay tax as defined and penalized under Sections 251 and 255 in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997.
Henares added that Ensogo and its officers were charged for their failure to remit taxes withheld and for failure to pay the corresponding expanded/withholding tax on compensation and value added tax (VAT) for the period Oct. 31, 2011 to Oct. 31, 2014 in the total amount of Php36.14 million, inclusive of surcharge, interest and compromise penalty.
The respondent company is a Philippine corporation registered with the Securities and Exchange Commission (SEC) and the BIR. It provides marketing services to its merchants, who are engaged in the leisure, catering and entertainment industries.
Investigation shows that Ensogo is a withholding agent mandated to withhold taxes on various income payments to its suppliers and to withhold taxes on the compensation of its employees. It is also an eFPS taxpayer.
BIR probers found that Ensogo electronically filed its withholding tax and VAT returns, but deliberately, willfully and continuously failed to remit taxes withheld and/or pay the corresponding withholding taxes and VAT due thereon, whether electronically or manually resulting to considerable revenue losses for the government.