BIR racks up 40 cases of tax evasion this year

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has already filed a total of 40 criminal complaints under its Run After Tax Evaders (RATE) program as of the end of June.

In a weekend briefer, the BIR said it filed its 40th RATE case last June 30 against a Caloocan-based businessman with the Department of Justice.

The businessman, identified as Pepito Gutierez Baes, was found to have failed pay deficiency taxes for taxable year 2010 amounting to P4.92 million, inclusive of surcharges and interests. 

The BIR was able to garnish P296,195.66 from the businessman’s  account with the Bank of the Philippine Islands.

“Baes then offered to compromise his tax liabilities and requested that he be allowed to pay 10 percent  of his basic assessed Income and value added taxes with a promise to pay his deficiency expanded withholding tax in full,” the BIR said. 

However, after depositing his third installment, Baes  failed to make any further payments on his remaining balance of P4.92 million. 

“Despite being reminded of his commitment to pay, repeated demands and the service of the final notice, the said deficiency tax liability remained unpaid,” the BIR said.

“The respondent’s obstinate failure and continued refusal to pay his long overdue deficiency tax assessments, despite repeated demands, constitute willful failure to pay the taxes due to the government,” it added.

The RATE program was initiated by the BIR in 2005 as part of efforts to raise revenues for the government through effective and efficient collection of taxes, quality service to taxpayers, and impartial and uniform enforcement of tax laws.