Box maker, luxury car buyer face tax evasion raps

MANILA, Philippines - A corrugated box manufacturer and a luxury car buyer are facing P414.82-million tax evasion charges after the Bureau of Internal Revenue filed a complaint on Thursday before the Department of Justice.

Megapack Container Corp. and its president, Salvador Lara were charged for not paying taxes and for failing to supply the tax bureau correct information in its tax returns for 2009 and 2010, BIR said.

The company manufactures, buys and sells corrugated boxes in Caloocan City, with Nestle and Handyware among its clients.

The tax collector said Megapack sales amounted to at least P943.28 million in 2009 and 2010, but it only declared P457.38 million in sales in 2009 and did not declare any in 2010.

BIR added that the company did not present its books as required by law when it was tagged for audit.

BIR Commissioner Kim Henares said the underdeclaration is more than 30 percent and is prima facie evidence of fraud.

The state agency also filed charges against Napoleon Segui Villapando of Ayala Alabang, Muntinlupa City who bought a P20-million Lamborghini two-door coupe sports car in 2007 from Norsophil Metal Resources, Inc. Villapando only declared a total of P225,078.60 in income for the same taxable year.

Norsophil employed Villapando in 2003, 2004, 2006 and 2007. withholding and remitting his income taxes in those years. From 1999 to 2002 and in 2005, however, he did not file an income tax return.

BIR said it computed Villapando's deficiency tax liability, including surcharges and interests at P15.84 million.

Henares added that based on the expenditure theory, if a person's expenses in a given year exceeds his income and the source of funds from the excess spending is unexplained, it is considered as unreported income that should be taxed.