BIR files Php88.54-M tax evasion case against Camp John Hay Leisure

By on February 27, 2015

Camp John Hay in Baguio City (
Camp John Hay in Baguio City (

MANILA — The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) an Php88.54-million tax evasion case against Camp John Hay Leisure, Inc. (CJHL, Inc.).

Also charged were CJHL, Inc. president Alberto Q. Avancena and financial controllers Rialena E. Magat and Rodeen A. Corpuz.

In a press conference, BIR Commissioner Kim S. Jacinto-Henares said the respondents were charged for willful attempt to evade or defeat tax, and deliberate failure to supply correct and accurate information in its Income Tax Returns (ITRs) for taxable years 2006, 2009, 2010 and 2011 as defined and penalized under Sections 254 and 255 of the National Internal Revenue Code of 1997.

CJHL, Inc. is a domestic corporation with primary purpose of carrying on the business of managing, including supervision, operation/administration, and marketing of hotels such as Camp John Hay Manor. Its registered address is at Camp John Hay, Loakan Road, Baguio City.

Henares said a comparison and computation of the documents gathered showed that CJHL, Inc. had a gross income of Php34.53 million in 2006, Php40.92 million in 2009, Php39.76 million in 2010, and Php44.52 million in 2011.

However, the respondent company only declared Php8.95 million, Php11.6 million, Php11.33 million and Php12.65 million as gross income in its ITRs for taxable years 2006, 2009, 2010 and 2011, respectively.

The BIR Chief stressed that CJHL, Inc. thus substantially underdeclared its gross income by 286% or Php25.58 million in 2006, 253% or Php29.32 million in 2009, 251% or Php28.43 million in 2010 and 252% or Php31.87 million in 2011.

Henares noted that under Section 248(B) of the Tax Code, an underdeclaration of taxable income by more than 30% constitutes a prima facie case of fraud.

She pointed out that as a consequence of its acts and omissions, CJHL, Inc. was sued for an aggregate tax liability amounting to Php88.54 million, inclusive of surcharges and interests.