Sugar Company caught for Tax Evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against JOLINECAA CORPORATION (JOLINECAA) and its President ANECITO M. CAMPOS (CAMPOS) for their willful failure to pay deficiency taxes for taxable year 2006 despite repeated demands, 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).

JOLINECAA is a domestic corporation whose principal office is located at A-62 Tindalo Street, Bacolod City. It is primarily engaged in the trading of goods (i.e. Molasses).

Records of investigation showed that JOLINECAA 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 2006.

Despite the issuance of the LOA, three subsequent notices for the presentation of its books of accounts and other related accounting records, including a Subpoena Duces Tecum (SDT), JOLINECAA still failed to submit the required documents.

For such failure to submit the required documents, the BIR assessed JOLINECAA a total deficiency tax amounting to P17.10 million for taxable year 2006 on the basis of best obtainable evidence.

JOLINECAA was assessed deficiency income tax amounting to P16,925,049.05 after company expenses and purchases were disallowed for lack of valid supporting documents. Being subject to Value Added Tax (VAT), subject corporation was assessed VAT in the amount of P174,921.66 after the BIR discovered that it sold sugar in 2006 amounting to P6.78 million to Carlos Uy Corporation (CUC). The finding was based on the cash invoice issued by CUC covering the said transaction.

Furthermore, JOLINECAA was penalized for P1,000.00 each for its failure to file BIR Form 1604-CF (Annual Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes) and for its failure to file Inventory List.

Consequently, the BIR issued JOLINECAA a Preliminary Assessment Notice and a Final Assessment Notice reflecting the abovementioned assessment. JOLINECAA 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, JOLINECAA obstinately has failed and refused to pay the aforementioned long overdue deficiency tax liabilities.

The case against JOLINECAA CORPORATION and its President ANECITO M. CAMPOS is the 108th 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. 12, Bacolod City.