The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against SOUTHSERV LOGISTICS CORPORATION (SOUTHSERV), its President RESTITUTO L. RAFLORES and Treasurer TERESITA V. DE GRACIA for their willful failure to pay tax as defined and penalized under Section 255, in relation to Section 253 and Section 256, of the National Internal Revenue Code of 1997, as amended (Tax Code).
SOUTHSERV is a domestic corporation incorporated with the Securities and Exchange Commission for the primary purpose of warehousing and trucking services. Its registered address is at Block 27, Lot 24, Phase 1, Lorenzo South Subdivision, Sta. Rosa City, Laguna.
Records of investigation showed that Southserv was issued a Letter of Authority (LOA) for the examination of its books of accounts and other accounting records for all internal revenue taxes covering taxable year 2006.
Despite the issuance of the LOA and three subsequent notices for the presentation of its books of accounts and other related accounting records, Southserv did not submit the said required documents. The BIR subsequently issued a Subpoena Duces Tecum (SDT), a Notice of Informal Conference, a Preliminary Assessment Notice and a Formal Letter of Demand with Details of Discrepancy assessing Southserv a total internal revenue tax liability amounting to P6.67M for 2006 and demanding the payment thereof.
Southserv still failed to settle its tax liabilities. The said assessment became final and executory for its failure to protest the same. Accordingly, a Preliminary Collection Letter and a Final Notice Before Seizure were issued to Southserv to make the necessary settlement of its tax liabilities.
However, despite such demands and the lapse of a considerable length of time, Southserv has obstinately failed and adamantly refused to pay its long overdue deficiency tax assessments, to the prejudice of government.
The case against SOUTHSERV LOGISTICS CORPORATION, its President RESTITUTO L. RAFLORES and Treasurer TERESITA V. DE GRACIA is the ninety-ninth (99th) 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. 9, San Pablo City.