A Total Gas dealer, CARLO C. SERA, has been added to the tax evasion rolls after the Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a criminal complaint against him for willful attempt to evade or defeat payment of tax and deliberate failure to supply correct and accurate information in his income tax return (ITR) for taxable years 2007 and 2008, in violation of Sections 254 and 255 of the Tax Code of 1997, as amended.
Sera was likewise charged for deliberate failure to file VAT returns for 2009, perjury and failure to register as VAT taxpayer, likewise in violation of Sections 254 and 255 as well as of Sections 267 and 275, in relation to Section 236 (G) (1) of the same code.
Sera, operator of Total Gas Station in Brgy. Abagon, Gerona, Tarlac, was rapped for tax evasion after BIR investigators discovered he substantially underdeclared his purchases from Total Philippines Corporation (Total). Sera declared in his ITR purchases of P0.54 million in 2007 and P1.02 million in 2008. A certification issued by Total, however, showed that he made purchases amounting to P53.14 million and P52.51 million in 2007 and 2008, respectively.
A computation of the undeclared sales of Sera when compared to what he declared in his financial statements filed with the BIR resulted to an underdeclaration of 14,974% (P96.06M) in 2007 and 5,280% (P66.95M) in 2008. Such substantial underdeclaration showed Sera’s manifest intent to defraud the government of much needed taxes.
Under the Tax Code, an underdeclaration of taxable sales of more than 30% is considered substantial underdeclaration and constitutes prima facie evidence of fraud tantamount to tax evasion.
Sera also failed to register as a VAT taxpayer after his taxable sales exceeded the P1.5 million threshold in 2007 and consequently, failed to file the required VAT returns. And for attesting and signing his name in his 2007 ITR, knowing fully well that the return contained untrue and incorrect information, made him liable for perjury under Section 267 of the Tax Code.
As a result of his underdeclared sales and his failure to register as VAT taxpayer, Sera was assessed an estimated aggregate deficiency tax liability for taxable years 2007 and 2008 amounting to P82.54 million.
The case against CARLO C. SERA is the fifty-seventh (57th) 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 first RATE case of Revenue Region No. 4, San Fernando, Pampanga.