The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against HILARIO B. DE VERA (DE VERA) for willful attempt to evade or defeat tax and for deliberate failure to supply correct and accurate information in his Income Tax Return (ITR) and Value Added Tax (VAT) Return for taxable year 2009, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).
DE VERA is the sole proprietor of MANILA AEROSPACE PRODUCTS TRADING (MAPTRA) with business address at Hangar 10, General Aviation Area, Pasay City whose company MANILA AEROSPACE PRODUCTS TRADING CORPORATION was involved in an alleged anomalous sale of helicopters to the Philippine National Police (PNP).
The investigation of DE VERA was made pursuant to a Letter of Authority issued by the BIR to ascertain his true income and to establish his tax liabilities for taxable year 2009.
On the basis of documents filed with the BIR by his customers, particularly BIR Form 2307 (Certificate of Creditable Tax Withheld at Source), investigators discovered that DE VERA received income payments amounting to P20.56 million in 2009 from ABS-CBN (P17.07M), Ayala Aviation Corporation (P65,296.61), Crystal Sugar (P0.24M), KMC Realty Corporation (P0.30M), SM Land, Inc. (P0.54M), Star Borne Chartering Corp. (P1.12M), Fieldtech Asia, Inc. (P1.19M), and South East Asia Airlines, Inc. (45,357.14).
A comparison of the total income payments DE VERA received as abovementioned with the sales he declared in his 2009 ITR amounting to P9.56 million revealed an underdeclaration of sales of more than 30%. Under the Tax Code, an underdeclaration of more than 30% is substantial and constitutes prima facie evidence of fraud tantamount to tax evasion.
DE VERA was sued for a total deficiency tax liability for taxable year 2009 in the aggregate amount of P9.83 million, inclusive of surcharges and interests, broken down into: Income Tax – P7.02 million; and VAT – P2.81 million.
The case against HILARIO B. DE VERA is the 113th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.