REN TRANSPORT CORPORATION a garbage collection and disposal contractor of four National Capital Region Local Government Units (LGUs) is now facing tax evasion charges after the Bureau of Internal Revenue (BIR) filed with the Department of Justice (DOJ) a complaint for willful attempt to evade or defeat payment of taxes, willful failure to supply correct and accurate information, and perjury after it was discovered to have deliberately and substantially underdeclared its income for three (3) consecutive taxable years (2006 to 2008) and to have failed to file its income tax return (ITR) and pay the tax due thereon for the year 2009.
its responsible corporate officers were included in raps sheet – Reynaldo A. Pazcoguin III (President), Edwina B. Pazcoguin (Corporate Secretary), Nenita Biag (Treasurer), and Edson O. Fernandez (Accountant). Ren Transport is a domestic corporation engaged in the trucking business with business address at #14 Timog Avenue, Laging Handa, Quezon City. It is the service contractor of San Juan, Muntinlupa, Malabon, and Caloocan for the collection and disposal of garbage within the said LGUs’ area.
BIR found out that Ren Transport was paid P150,474,855.97 in 2006, P186,407,019.31 in 2007, and P85,126,542.62 in 2008. Compared to its declaration in its ITRs, it under declared its income by P96,385,401.31 (178.20%), P120,871,381.97 (184.44%), and P66,535,345.97 (357.89%) in taxable years 2006, 2007, and 2008, respectively. Under the Tax Code, an under declaration of taxable income of more than 30% is considered as substantial under declaration and constitutes prima facie evidence of a false or fraudulent return.
The total deficiency tax liability for the four-year taxable period expected to be collected from Ren Transport was pegged at P299,696,545.97, inclusive of all increments, broken down as follows: 2006 – P111,299,479.59; 2007 – P124,828,392.52; 2007 – P51,046,556.91; and 2009 – P12,522,116.94.