Tax Charges

2 August 2012

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has filed tax evasion charges against a Japanese businessman and his local representative for allegedly refusing to pay income and business taxes for 2007 amounting to more than Php 58 million.

In a criminal complaint filed before the Department of Justice, BIR Commissioner Kim S. Jacinto Henares identified the accused as Aiko Sugawara and Rodolfo M. Bausa, general manager and resident agent, respectively, of Toshiba Plant Systems and Services Corporation with address at Better Living Subdivision, Parañaque City.

The Japanese firm is registered with the Securities and Exchange Commission (SEC) primarily to construct the San Roque Multi-Purpose Power Project in Pangasinan.

The company used to be Toshiba Plant Kensetsu Company which change was not reported to the BIR as required by the Tax Code.

Records showed that at first the firm refused to open its books of accounts and other records, but eventually relented when it was issued the proposed assessment based on the best obtainable evidence.

During the audit, BIR probers uncovered unrecorded sales prompting the BIR to slap the company with Php 58 million in deficiency income, value-added and withholding taxes.