Taxi operator sued for tax evasion

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Thursday, April 10, 2014

AN OWNER of a taxi and freight forwarding businesses in Bulacan was charged with tax evasion on Thursday for not reflecting car acquisitions in the annual income tax returns from 2009 to 2011.

In a complaint filed with the Department of Justice (DOJ), the Bureau of Internal Revenue (BIR) said Gaudencio de Guzman of G. de Guzman Enterprises failed to pay P10.53 million (inclusive of surcharges and interests) to the government.

De Guzman has a license to operate air- conditioned taxi service within Metro Manila and from Manila to any point of Luzon and made several car acquisitions in 2009, 2010 and 2011, records forwarded by the Land Transportation Office (LTO) to the BIR showed.

He bought eight cars from Nissan Westgate Alabang in Muntinlupa City amounting to P4.8 million in 2009, 14 cars from Toyota Otis Inc. in Manila worth P8.386 million in 2010, and four cars also from Toyota Otis valued at P2.396 million in 2011.

All the said acquisitions were not reflected either as assets or liabilities in the financial statements submitted by de Guzman in his Annual ITRs for the years 2009 to 2011, the BIR said.

Further scrutiny of the financial statements of G. de Guzman Enterprises for the three-year period revealed that its reported revenues do not support the company's financial capacity to purchase and/or acquire said car units, which were not financed by loans.

De Guzman declared revenues in the amounts of P1.40 million, P1.36 million, and P1.41 million in 2009, 2010 and 2011, respectively.

The BIR concluded that the acquisition costs of the car units are de Guzman's underdeclared income, which was at 341.81 percent in 2009, 616.82 percent in 2010 and 170.02 percent in 2011.

Under Section 248(B) of the Tax Code, an underdeclaration of income by more than 30 percent constitutes a prima facie evidence of tax evasion.

De Guzman’s accountant, Ernesto Paguia, was also charged with violation of Section 257(A)(2) of the Tax Code for certifying the businessman’s questionable tax returns. (Sunnex)

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