The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against former Philcomsat Holdings Corporation (PHC) Chairman and Director BENITO RAMON V. ARANETA (Araneta) for three (3) counts of attempt to evade or defeat tax and three (3) counts of willful failure to supply correct and accurate information, for taxable years 2003, 2004 and 2005.
Araneta, whose registered address is 3/F ENZO Bldg., 399 Gil Puyat Avenue, Makati City, was one of the subjects of a confidential information given to the BIR that several former directors and officers of PHC had unreported compensation and/or benefits from PHC.
Investigation by the BIR disclosed that Araneta filed his Income Tax Returns (ITRs) for taxable years 2003, 2004 and 2005. However, he failed to declare his exact salaries, allowances and fees, and Director’s allowances and per diems from PHC, as well as other taxable income from different sources amounting to P104,087,640.00 in the same period.
Consisting of travel allowances, reimbursements, and advances treated as “advances to affiliates” in PHC’s books not accounted for by Araneta and pretermination of money market placements and Special Savings Account of PHC which Araneta appropriated to himself, BIR investigators discovered that Araneta underdeclared his income by P15,015,899.00 in 2003, P53,221,741.00 in 2004 and P35,850,000.00 in 2005. His failure to report said other taxable income in his ITRs constituted the offense of failure to supply correct and accurate information and non-payment of proper taxes.
Araneta was assessed deficiency income taxes for the said period in the aggregate amount of P87,765,147.60, inclusive of surcharges and interests, broken down as follows: P13,737,852.52 – 2003; P45,549,165.08 – 2004; and P28,478,130.00 – 2005.
The case against BENITO RAMON V. ARANETA is the thirty-sixth (36th) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.