Henares parting shots: charges against Planters Development Bank, others

Posted on June 29, 2016 09:33:00 PM [ bworldonline.com ]

BUREAU of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares marked the eve of her departure from office by filing separate tax evasion cases against Planters Development Bank (PDB), a former Land Transportation Office (LTO) Chairman, Alberto Suansing, and nine other parties.

PDB, its Senior Vice-President Jose F. Acetre and a certain Willington Lim were charged with “willful attempt to evade or defeat taxes” for tax year 2014.

The Bank and Mr. Lim allegedly evaded the payment of penalties in the amount of P959,581.35 by executing a Deed of Absolute Sale dated later than the actual transaction.

BIR however discovered that PDB and Lim concluded a cash sale last in November 2009, allegedly avoiding payment of Expanded Withholding Tax.

“PDB and Lim postdated the deed of sale trying to defeat the imposition of surcharge and interest,” said Ms. Henares during her last news conference.

Likewise, former LTO Chairman and now North Star Port Development Corp. (North Star) President Alberto H. Suansing and Treasurer Rosauro A. Aguinaldo were charged with “willful failure to pay taxes.”

North Star was assessed an unpaid deficiency liability for tax year 2008 amounting to P29.83 million.

The respondent subsequently ignored demand notices issued by the BIR.

“The respondent’s obstinate failure and continued refusal to pay its long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government,” according to a bureau statement.

Sought for comment, Mr. Suansing said he left the company in 2007 and cannot be liable for evasion of taxes in 2008.

He also denied receiving notices from the commission including the Final Notice Before Seizure.

“I left the company 9 years ago. I used to be an officer,” Mr. Suansing said by phone, adding that he is currently seeking legal advice.

Commissioner Henares leaves office having charged 492 private corporations and individuals with violations of the revenue code.

“We’re following every rule of law. These are contained in provisions of the Internal Revenue Code and we should implement it,” Ms. Henares said.

“Its also to show people we are serious about tax collection,” she added. -- Keith Niño B. Medrano           

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New BIR chief revokes Henares orders

By Prinz Magtulis (The Philippine Star) | Updated July 2, 2016 - 12:00am

MANILA, Philippines - The new commissioner of the Bureau of Internal Revenue (BIR) just gave taxpayers his welcome gifts.

True to his pronouncements, BIR commissioner Cesar Dulay suspended all tax probes, revoked two of his predecessor’s orders and restricted implementation of others issued last month on his first day yesterday.

“I just signed today three orders,” Dulay told The STAR in a phone interview. The orders will not be in effect until published.

Under Revenue Memorandum Order (RMO) 38-2016, the tax chief said he revoked two circulars issued by Kim Henares laying out tax investigation rules against property buyers and sellers.

Issued June 7 and 13, respectively, RMO 24- and 25-2016 stated that real estate purchasers and sellers may be investigated if they cannot prove financial capacity for owning their assets.

“I am recalling those orders as what I stated during our conference in Davao,” Dulay said, pertaining to the workshop with the business community last June 17.

Industry group Tax Management Association of the Philippines (TMAP), who opposed the rules, welcomed the news. “Is it Christmas today?” said president Benedict Tugonon.

Aside from this, Dulay also signed Revenue Memorandum Circular (RMC) 69-2016 that suspends all Henares’ orders from June 1 to 30, which TMAP had said was supposed to be a transition period.

“These are preventive reviews after listening to the players. Initially, only those in June will be covered, but I may consider others,” Dulay said.

Also issued was RMC 70-2016 that suspended all letters of authority (LOA) and instructing all revenue offices to provide him an inventory of these orders by July 16.

BIR gives LOA to taxpayers under investigation or audit.

“I will review them and will clear the valid ones, one by one,” Dulay said.

Sought for comment, Tugonon said he is “very happy” with Dulay’s “quick action” on their concerns. TMAP and Dulay met on the sidelines of the conference in Davao City.

In particular, TMAP had blasted Henares for issuing rules weeks before she stepped down last Thursday. The former BIR chief justified this, saying she was merely doing her job. “This is what we have been asking and advocating for. These rules and regulations are not consistent with the law which could tax compliance very difficult,” Tugonon said in a phone interview.

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