A toy company is now “playing” a tax evasion case after the Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a criminal complaint for willful attempt to evade or defeat payment of taxes, and deliberate failure to supply correct and accurate information after it was discovered to have deliberately and substantially underdeclared its income for taxable year 2008.

Charged before the DOJ were WANLY TOYS INTERNATIONAL CORPORATION (Wanly Toys) and its responsible corporate officers – Imee Tan Yao (President), Haide J. Yao (Corporate Treasurer), and William C. Pan, Jr. (CPA). Wanly Toys is a domestic corporation engaged in the business of trading goods such as toys and other related items on wholesale basis (importer) with business address at Room 101 Unifortune Building, 612 Elcano St., Tondo, Manila.

Based on data obtained from the BIR Reconciliation of Listings for Enforcement (RELIEF) System, investigators discovered that Wanly Toys made a total sales of P107,339,197.31 in 2008. Compared to its declaration in tax returns and accompanying financial statements, it underdeclared its income by a total amount of P81,742,626.40 or by 76.34%. Under the Tax Code, an underdeclaration of taxable income of more than 30% is considered as substantial underdeclaration and constitutes prima facie evidence of a false or fraudulent return.

Based on the said data, the total deficiency tax liability of Wanly Toys for the said taxable period was computed at P26,398,919.60, inclusive of all increments, broken down as follows: Income Tax – P9,086,413.13; and Value-Added Tax – P17,312,506.47.

Mr. Pan, on the other hand, was charged for issuing an unqualified opinion in his certification of the financial statements of Wanly Toys for taxable year 2008 despite the latter’s underdeclaration of its reported revenues/income.

The case against Wanly Toys and its responsible corporate officers is the twenty-first (21st) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise the second RATE case of Revenue Region No. 6, Manila. (reytdlc)