The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a criminal complaint against MANUEL C. GARCIA (Garcia) for five (5) counts of willful attempt to evade or defeat tax and five (4) counts of willful failure to supply correct and accurate information in his Income Tax Return (ITR) for taxable years 2006, 2007, 2008, 2009 and 2010, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Garcia, a resident of 51 Luskot Street, Brgy. Don Manuel, Quezon City, was the former Manager of the Public Relations and Publicity Department of the Philippine Charity Sweepstakes Office (PCSO) from 2001 to 2010.

The complaint stemmed from graft complaints filed by Alexander Quisumbing and Ludovico Yuseco before the Office of the Ombudsman against Garcia for allegedly raking up kickbacks from advertising placements of the PCSO on radio programs, television shows and newspapers. Quisumbing and Yuseco alleged that they paid under duress P16.1 million and P12.61 million, respectively, to Garcia as bribe money in exchange for the payment of their advertising services. They presented as evidence paid personal checks and validated deposit slips indicating that the cash proceeds were delivered and deposited to the account of Garcia.

Investigation by the BIR showed that Garcia understated his gross taxable income by more than 30% or by P29.02 million for the five (5) year period 2006 to 2010. Under Sec. 248 (B) the Tax Code, such underdeclaration of income constitutes a prima facie case of fraud.

Comparing Garcia’s declaration in his income tax returns and the pieces of documentary evidence gathered from Quisumbing and Yuseco in their graft complaints, the BIR discovered that Garcia understated his gross taxable income by 2,606% or P10.8 million in 2006, 1,195% or P5.21 million in 2007, 469% or P2.4 million in 2008, 132% or P8.16 million in 2009 and 333% or P2.45 million in 2010.

Garcia was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P18.91 million, inclusive of surcharges and interests, broken down as follows: P8.10 million – 2006; P3.57 million – 2007; P1.47 million – 2008; P4.56 million – 2009; and P1.21 million – 2010.

The case against MANUEL C. GARCIA is the fifty-fifth (55th) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.