MANILA — The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) a Php359.75-million tax evasion case against a Quezon City-based multi-level marketing club.
In a press conference, BIR Assistant Commissioner Claro B. Ortiz said charged was , Inc. (Royale) for willful attempt to evade or defeat tax, and deliberate failure to supply correct and accurate information in its Annual Income Tax Returns (ITRs) and Quarterly Value Added Tax (VAT) Returns for taxable years 2011, 2012 and 2013 as defined under Sections 254 and 255 of the National Internal Revenue Code of 1997.
Likewise charged for the same violations were Royale’s president Julius Allan G. Nolasco, vice president for finance/treasurer Isa Angela C. Bautista, assistant treasurers Jeanette R. Maghirang and Imelda P. Pedron, and assistant accounting manager Marjorie G. Molina.
Royale is a domestic corporation with the primary purpose of marketing consumer products and distributorship of food supplements, cosmetics, pharmaceutical products and beverages. It is located in West Triangle, Quezon City.
Access letters were sent to various banks, including the Bank of the Philippine Islands (BPI), Metrobank and Banco de Oro (BDO).
In reply, BPI, Metrobank and BDO certified that they paid Royale Php141.60 million, Php468.55 million and Php171.07 million, respectively.
Ortiz said that Royale received income payments from the said banks amounting to Php190.79 million in 2011, Php236.38 million in 2012 and Php354.06 million in 2013.
However, investigators discovered that Royale declared in its ITR gross sales amounting to only Php39.14 million in 2011, Php106.69 million in 2012 and Php196.68 million in 2013.
Ortiz said that as a consequence of its acts and omissions, Royale was likewise sued for an aggregate deficiency tax liability amounting to Php359.75 million, inclusive of surcharges and interests.