The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against former Philcomsat Holdings Corporation (PHC) Board of Director Philip G. Brodett (Brodett) for five (5) counts of willful attempt to evade or defeat taxes for taxable years 2003-2007, four (4) counts of willful failure to supply correct and accurate information in his Income Tax Returns (ITRs) for taxable years 2003-2006 and one (1) count of willful failure to file his ITR for taxable year 2007.
Brodett, a resident of No. 15 Cambridge cor. Oxford St., Hillsborough Subdivision, Alabang, Muntinlupa, underdeclared his income for taxable years 2003-2007 by 98% or P674,249,321.87. Under the Tax Code of 1997, as amended, an underdeclaration of income or revenues exceeding 30% is already a prima facie case of fraud.
BIR investigators discovered through pieces of documentary evidence such as deposit slips, receipts, certificates of registration, memoranda of agreement, deeds of sale for vehicles acquired, working papers provided by external auditors and evidence provided by PHC that Brodett earned P15,477,358.19, P43,596,072.03, P37,005,198.79, and P40,055,724.20 in 2003, 2004, 2005 & 2006, respectively, but only declared in his ITR for the same taxable years P946,000.00, P1,148,815.62, P1,809,800.00 and P2,344,050.00.
Furthermore, the BIR found out that Brodett failed to file his ITR for taxable year 2007 despite earning income of P625,784,446.98.
Brodett was assessed deficiency income taxes for the years 2003-2007 in the aggregate amount of P526,610,537.55, inclusive of surcharges and interests.
The case against PHILIP G. BRODETT is the thirty-fourth (34th) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.