Failure to comply with BIR Notices thus charged with willful failure to pay deficiency taxes

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against JEDVAM MANUFACTURING CORPORATION (JEDVAM), its President HENRY CHUA YU, Treasurer NORBERTO M. DUQUE and Import Manager JOSEPH YU for their willful failure to pay deficiency taxes for taxable years 2007 and 2008 despite demand, in violation of Section 255, in relation to Sections 253 (d) and 256, of the National Internal Revenue Code of 1997, as amended (Tax Code).

JEDVAM is a domestic corporation incorporated with the Securities and Exchange Commission. It is primarily engaged in the manufacturing of goods such as various packaging containers, papers, kraftliner boards and corrugated boards for industries utilizing materials such as yarn, plastic resins, HDPE, polypropylene resin, polyethylene resins, OPP film, paints for plastic and other materials of similar nature. Its registered address is at 208-B C. Ramirez Building, 121 Quezon Avenue cor. G. Araneta Avenue, Quezon City.

Records of investigation showed that JEDVAM 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 years 2007 and 2008.

Despite the issuance of the LOA and three subsequent notices for the presentation of its books of accounts and other related accounting records, JEDVAM did not submit the said required documents. The BIR subsequently issued a Subpoena Duces Tecum (SDT), but the same was also disregarded forcing the BIR to file a complaint with the City Prosecutor of Quezon City.

In the course of its investigation, the BIR obtained information from the Bureau of Import Services of the Department of Trade and Industry that JEDVAM had importations amounting to P2.30 billion in 2007 and P2.70 billion in 2008.

On the basis of such information, the BIR assessed JEDVAM a total deficiency tax amounting to P1.93 billion for the two year period of 2007 and 2008 broken down into Income Tax of P0.4 billion, Withholding Tax of P0.02 billion and Value Added Tax of P1.51 billion.

Consequently, the BIR issued JEDVAM a Preliminary Assessment Notice and a Final Assessment Notice reflecting said assessment. JEDVAM never protested said assessments allowing the same to become final, executory and demandable. And despite the receipt of the requisite notices and the lapse of the reglementary period provided by law, JEDVAM has willfully failed to pay the aforementioned deficiency tax liabilities.

The case against JEDVAM MANUFACTURING CORPORATION, its President HENRY CHUA YU, Treasurer NORBERTO M. DUQUE and Import Manager JOSEPH YU is the 103rd 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. 7, Quezon City.