CARLOTA CRISTI MANALO TAN (TAN), a single proprietor who is one of the subjects of a Senate inquiry on anomalous transactions with the Philippine Amusement and Gaming Corporation (PAGCOR), has been consigned to the tax evasion rolls after the Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a criminal complaint against her for willful attempt to evade or defeat payment of tax and deliberate failure to supply correct and accurate information in her income tax return (ITR) for taxable years 2003 and 2004, in violation of Sections 254 and 255 of the Tax Code of 1997, as amended.
TAN, whose registered address is at Bo. Bancal, Carmona, Cavite, is the operator/owner of CARMONA RACE TRACK and PROMOLABELS SPECIALTY SHOP, the latter being a concessionaire of PAGCOR which operates the “Figaro Coffee Shops” in the casinos.
Documents gathered by BIR investigators showed that Tan was paid substantial income from her dealings with PAGCOR, earning as much as P36.72 million in 2003 and P70.24 million in 2004 or a total of P106.96 million.
Despite earning said substantial income from PAGCOR, TAN failed to supply correct and accurate information on the actual income she received in her ITRs for taxable years 2003 and 2004. In 2003, she only reported P16.06 million in her return and a measly P25.82 million in 2004, or a total of P41.88 million.
TAN underdeclared her sales by P20.66 million (128.61%) and P44.43 million (172.09%) in 2003 and 2004, respectively.
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.
As a result of her underdeclared sales, TAN was assessed an estimated aggregate deficiency income tax liability of P59.00 million, including surcharges and interest, broken down as follows: P19.67 million – 2003; and P39.33 million – 2004.
The case against CARLOTA CRISTI MANALO TAN is the fifty-eighth (58th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)