The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against OSCAR REPUYAN BADILLO (BADILLO) for one (1) count of willful attempt to evade or defeat tax and one (1) count of willful failure to file Annual Income Tax Return (ITR) and three (3) counts of willful failure to file Quarterly ITRs for taxable year 2009, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
Badillo is a sole proprietor doing business at No. Unit 505 A Wack Wack Twin Tower, Mandaluyong City under the trade name Royal Trust Construction. He is registered as a VAT taxpayer with TIN 203-792-684 under Revenue District Office (RDO) No. 41, Mandaluyong City. He is likewise registered as a one-time transaction taxpayer with RDO No. 38, North Quezon City (TIN 110-443-300-000) and RDO No. 54, Trece Martirez City, Cavite (TIN 145-835-256-000).
Investigation by the BIR revealed that Badillo was paid P49.22 million (P54.26 million contract price) in 2009 by the City of Manila for the construction of a three (3) storey building of F. Balagtas Elementary School (Phase III) as evidenced by checks and disbursements vouchers from the City of Manila, together with the Official Receipt (OR) issued by Royal Trust Construction. Badillo, however, failed to declare said taxable income with the BIR when he failed to file his ITR for taxable year 2009.
After a thorough investigation, BIR uncovered that he made it appear that he filed an ITR with RDO No. 29, Tondo, Manila for taxable year 2009 using TIN 145-835-256-000 in spite of his registration with the three (3) abovementioned RDOs of the BIR. The said ITR turned out to be fake and spurious. This fraudulent scheme obviously intended to evade or defeat tax and the payment thereof was uncovered by special investigators.
The said return did not go through the Collection and Bank Reconciliation (CBR) system and batching process, making the ITR spurious and/or not filed.
For failing to report taxable income received, Badillo was assessed a total deficiency income tax liability for taxable year 2009 amounting to P30.35 million, inclusive of surcharges and interests.
The case against OSCAR REPUYAN BADILLO is the 106th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.