ANTIPUESTO TRIKE FOR LIFE FOUNDATION, INC. (ANTRIKE), including its President PABLITO D. ANTIPUESTO, was unmasked today by the Bureau of Internal Revenue (BIR) for engaging in ultra vires acts constituting unreported taxable activities when a criminal complaint for tax evasion was filed against it with the Department of Justice for willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information in its income tax return (ITR) for taxable year 2008, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
ANTRIKE and ANTIPUESTO were also sued for failure to issue receipts or sales or commercial invoices to their borrower-tricycle drivers who paid their daily remittances under the “boundary-hulog” scheme, in violation of Section 264 of the Tax Code. Likewise, they were criminally charged for their failure to register for Value-Added Tax (VAT), in violation of Section 275 in relation to Section 236 (G) of the same Code.
ROWENA L. LAGUERTA (LAGUERTA) was included in the criminal complaint in her capacity as the Independent Certified Public Accountant who issued an unqualified opinion on the Audited Financial Statements of ANTRIKE despite knowledge of existence of income received by ANTRIKE from taxable financing activities.
ANTRIKE is a non-stock, non-profit organization registered with the Securities and Exchange Commission (SEC) for the purpose, among others, of providing livelihood projects and assistance to less fortunate, poor and deserving tricycle drivers.
Investigation showed that the BIR issued a Letter of Authority (LOA) authorizing the examination of the books of accounts and other related accounting records on all internal revenue taxes of ANTRIKE for taxable year 2008.
After service of the LOA and the required notices, the BIR issued a Preliminary Assessment Notice (PAN) and subsequently, a Final Assessment Notice (FAN) against ANTRIKE. The said assessments were duly protested but were denied causing the issuance of a Final Decision on Disputed Assessments which apprised ANTRIKE of its income tax and VAT liabilities for taxable year 2008.
Investigation by the BIR showed that ANTRIKE engaged in financing of tricycle units to less fortunate tricycle drivers under the scheme of “boundary-hulog.” Under the “boundary to own” contract, the tricycle drivers pay for the franchise, motorcycle unit and sidecar a daily amortization with interest of P250.00 for at least three (3) years (approximately P273,750.00). The scheme, investigators found out, was simply interest-bearing loans to the drivers similar to financing and lending activities in which ANTRIKE is not authorized to undertake and thus, ultra vires.
As a non-stock, non-profit foundation, ANTRIKE earned a sizeable amount of income from such activities which it failed to declare, hiding the same under the cloak of exemption as such foundation. These fraudulent acts constituted prima facie evidence of fraud tantamount to tax evasion.
ANTRIKE was assessed a total deficiency tax for 2008 amounting to P17.38 million, inclusive of surcharges and interest, broken down as follows: Income Tax – P12.86 million; and VAT – P4.52 million.
The case against ANTIPUESTO TRIKE FOR LIFE FOUNDATION, INC., its President PABLITO D. ANTIPUESTO and its Accountant ROWENA L. LAGUERTA is the fifty-ninth (59th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)