The Bureau of Internal Revenue (BIR) today filed a complaint-affidavit with the Department of Justice against FRITZ P. WEBB and KATHERINE P. WEBB for failure to issue registered receipts punishable under Section 264, in relation to Section 237, of the National Internal Revenue Code of 1997, as amended (Tax Code).
FRITZ and KATHERINE are the President/Partner and Treasurer, respectively, of Basement Salon Corporation (Basement Salon) with business address at 2nd Level, Power Plant Mall, Rockwell Center, Poblacion, Makati City. Most of their customers belong to the middle and upper class of society.
Records of investigation showed that Basement Salon was subjected to surveillance activities for several days pursuant to Mission Order (MO) No. MS02001 00076631 dated November 21, 2011 to establish whether or not the subject corporation was complying with the invoicing requirements mandated by the Tax Code.
On November 24, 2011, BIR investigators served the MO and thereafter apprehended twenty-five (25) Job Order Slips and One (1) Booklet of Official Receipts belonging to the said salon.
The investigators found that out of the 25 Job Order Slips that were issued on November 24, 2011, only two (2) were issued the corresponding official receipts – one to an unnamed customer in the amount of P1,210.00 and the other to a certain Chini Salonga for P6,000.00.
The discovery that only two official receipts were issued showed that payments for the remaining 23 transactions were not issued the corresponding receipts leading to the conclusion that respondents have been issuing receipts only upon demand of their customers despite the mandatory requirement of the law requiring persons subject to an internal revenue tax to issue receipts or sales or commercial invoices.
The case against Basement Salon Corporation and its responsible corporate officers FRITZ P. WEBB and KATHERINE P. WEBB is the eighty-fourth (84th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of Revenue Region No. 8, Makati City.