The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ZIEGFRIED LOO TIAN (TIAN) for willful attempt to evade or defeat payment of income and value added tax for taxable year (TY) 2010 and 2011, for deliberate failure to supply correct and accurate information in his Income Tax Return (ITR) for TY 2010 and Quarterly Value Added Tax (VAT) Returns for TY 2010 and 2011, and for deliberate failure to file his ITR for TY 2011, all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code). TIAN is the sole proprietor of GOLDEN TASTE FOOD SERVICES & GENERAL MERCHANDISING (GOLDEN TASTE) with business address at No. 1013 Juan Luna St., Brgy. 27 Zone 4, Tondo, Manila. TIAN is engaged in the business of food catering and wholesale of general merchandise.
The case against TIAN arose from a confidential information received by the BIR denouncing him for tax evasion perpetrated by not declaring the income he realized from his business GOLDEN TASTE.
Investigation disclosed that TIAN was contracted by the Bureau of Corrections (BuCor) to render catering services from August 17, 2010 to January 16, 2012 for inmates at the Correctional Institution for Women in Mandaluyong and Davao, Reception and Diagnostic Center, Muntinlupa Juvenile & Training Center, and the Medium and Minimum Security Compounds of the National Bilibid Prisons in Muntinlupa City. Based on a certification issued by BuCor, TIAN received a total payment of P183.23 million in 2010 and P185.48 in 2011 for its services rendered.
Records of the BIR showed that TIAN filed his ITR for TY 2010 but failed to file the same return for TY 2011. His 2010 ITR showed no amount or figure for purposes of filing a valid return except the words “Pls see Attached.” However, no financial statements and other pertinent papers were attached to the said return.
TIAN filed his VAT returns for TY 2010 and 2011. An examination of the said returns, however, revealed no amount or figure was shown except the word “EXEMPT.” His input taxes were likewise not reported in the information returns.
For said acts or omissions constituting violations of the Tax Code, TIAN was assessed a total deficiency tax liability for TY 2010 and 2011 in the aggregate amount of P215.07 million, inclusive of surcharges and interests, broken down into: Income Tax – P173 million; and VAT – P42.07 million.
The case against ZIEGFRIED LOO TIAN is the 115th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.