Henares' parting gift: biggest number of tax evasion cases in a day

MANILA, Philippines -- On her last full day in office, outgoing Bureau of Internal Revenue Commissioner Kim Henares gave tax evaders a parting gift: the biggest number of tax evasion cases filed in a day.

 

BIR filed 11 cases before the Department of Justice on Wednesday for violation of the National Internal Revenue Code under its flagship Run After Tax Evaders (RATE) program.

 

Launched in 2006, RATE got a boost under the Aquino administration's tack to improve revenues without raising tax rates, relying on administrative measures such as the filing of court cases.

 

"We think it really helped a lot in boosting the consciousness of the people on the rule of law and also increasing our revenue collections," Henares said in a phone interview.

 

Topping yesterday's cases was that against Planters Development Bank and its senior vice president, Jose Acetre and a certain Willingthon Lim. 

 

BIR said Lim and Plantersbank "colluded" in executing a deed of sale at a later date for a transfer of property to the former to avoid paying withholding taxes. They are being asked to pay P959,581.35.

 

Also sued was Conchita de los Reyes, a former mayor in Bohol, who is being asked to pay the BIR P15.73 million, including surcharges and interest. 

 

According to the investigation, De los Reyes was said to have increased her net worth to P19.10 million in 2012 from just P4 million the year before, but her tax payments did not reflect such.

 

"Investigators ascertained that De los Reyes substantially underdeclared her taxable income for 2011 and 2012...," the agency said in a statement.

 

The nine other companies and personalities sued and their total liability were Tradetechnique Enterprises Inc. and officer-in-charge Liza Olario for P115.77 million; poultry supplier Jose Bautista (P2.20 million); contractor Tessie Moral (P3.77 million); bingo operator Salle de Jeux Inc. and its president and treasurer (P53.48 million); Active Travel and Tours Inc. (P8.56 million); North Star Port Development Corp. (P29.83 million); and trader Remy Daffon (P206.33 million); AJ Corinthian Hauling Corp. and its manager and treasurer (P3.92 million); and property firm Jun Roque Construction and Development Corp. and its president and treasurer (P107.7 million). 

 

492 tax cases filed since 2010

 

Since 2010, a total of 492 RATE cases have been filed, although there were no convictions recorded.

 

"There were some decisions made that are being appealed. That is part of due process. I would be happy to see a conviction a day after we file a case, but that is not how the justice system works," Henares said.

 

"We are confident that the cases that we filed were strong and have solid foundation," she added.

 

In total, there are 50 RATE cases pending before the Court of Tax Appeals (CTA), one before the Court of Appeals and 17 others before the regular courts, Department of Finance data showed.

 

DOJ dismissed two cases with finality, while the Supreme Court did so in one. The CTA and other regular courts junked three other cases.

 

The rest are with the DOJ and are undergoing preliminary investigation, have been submitted for resolution or are being appealed.

 

Under Henares, BIR, which accounts for around 80 percent of state revenues, increased its collection an average of 11.7 percent from 2011 to 2015, DOF data showed.

 

This was faster than the 10.01 percent in the previous five years. 

 

Aside from RATE, the DOF, through the Bureau of Customs, also filed 222 smuggling cases under the Run After The Smugglers (RATS) program as of May.