RATE files case against Iloilo Businessman

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against AVELINO R. AW-YONG for two (2) counts of willful attempt to evade or defeat payment of income tax, and two (2) counts of willful failure to supply correct and accurate information in his Income Tax Returns for taxable years 2009 and 2010, in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code). 

AW-YONG is the owner/proprietor of ILOILO IZEEM COMMERCIAL located in Mabini Street, Iloilo City. He is engaged in the retail/wholesale of office supplies and equipment.

Investigation showed that AW-YONG received income payments amounting to P20.33M for taxable year 2009 and P23.43M for taxable year 2010. The said amounts were summed up from information gathered from various government agencies, offices, schools, universities, and other private institutions which had sales transactions with AW-YONG.

A verification of the Income Tax Returns of AW-YONG covering the same taxable years showed, however, that he only declared sales amounting to P5.87M and P6.39M for taxable years 2009 and 2010, respectively.

Investigators compared the amounts gathered from third party information with the declarations made by the subject businessman with the BIR and found a huge discrepancy in sales of more than 30% amounting to P14.46M (246.35%) in 2009 and P17.04M (266.57%) in 2010.

Under Section 248 (B) of the Tax Code, a substantial underdeclaration of more than thirty percent (30%) constitutes prima facie evidence of fraud.

Total deficiency income tax assessment against AW-YONG for the two-year period 2009-2010 amounted to P18.12M, inclusive of surcharges and interest, broken down as follows: 2009 – P8.31M; and 2010 – P9.81M.

The case against AVELINO R. AW-YONG is the eighty-third (83rd) 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 second (2nd) RATE case of Revenue Region No. 11, Iloilo City.