The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against MANILA AEROSPACE PRODUCTS TRADING CORPORATION (MAPTRA CORPORATION) and its President and Managing Head HILARIO B. DE VERA (DE VERA) for: 1. willful attempt to evade or defeat tax for taxable year (TY) 2009 and 2010, in violation of Section 254 of the Tax Code; 2. deliberate failure to file Income Tax Returns (ITRs) for TY 2009 and 2010, in violation of Section 255 of the Tax Code; 3. deliberate failure to file Value Added Tax (VAT) Returns for TY 2009 and 2010, in violation of Section 255 of the Tax Code; 4. willful failure to register with BIR and to apply for a Taxpayer Identification Number (TIN), in violation of Section 275, in relation to Section 236(A) and (G)(1) of the Tax Code; 5. failure to issue duly-registered receipts or sales or commercial invoices, in violation of Section 275, in relation to Section 237 of the Tax Code; and 6. unlawful pursuit of business for TY 2009 and 2010, in violation of Section 258, in relation to Section 236(B) of the Tax Code.
MAPTRA CORPORATION is a local business entity registered with the Securities and Exchange Commission with office address at Hangar 10, Manila Domestic Airport, Pasay City. It is primarily engaged in the sale of aircraft parts and spare parts.
The case against MAPTRA CORPORATION and DE VERA stemmed from a Senate investigation on the purported sale by MAPTRA CORPORATION to the Philippine National Police (PNP) of two (2) used/pre-owned helicopters declared as brand new.
On the basis of the supply contract, supplemental supply contract, disbursement vouchers and official receipts secured by the BIR from the Commission on Audit (COA)-PNP, investigators established that MAPTRA CORPORATION received from PNP P49.68 million in November 2009 and another P49.68 million in March 2010, or a total of P99.36 million, net of taxes, for the sale of one (1) fully equipped and two (2) standard Light Police Operational Helicopters. Despite having earned said income, however, MAPTRA CORPORATION failed to file its ITRs for TY 2009 and 2010 and consequently, failed to declare said income payments received from PNP and to pay the taxes due thereon.
Investigators likewise discovered that MAPTRA CORPORATION only registered with the BIR on October 21, 2011 despite the fact that it was incorporated in June 2009 and despite having sold three (3) helicopters to the PNP in July 2009. Having failed to register with the BIR, MAPTRA CORPORATION failed to pay the Annual Registration fee required by law, thus liable for unlawful pursuit of business.
Further investigation also revealed that the receipts issued by MAPTRA CORPORATION for the subject sale belonged to Manila Aerospace Products Trading, a single proprietorship. In addition, the TIN used in the said receipts was that of DE VERA. MAPTRA CORPORATION was thus liable for failure to issue duly-registered receipts or sales or commercial invoices. In this instance, DE VERA willfully aided and abetted MAPTRA CORPORATION in pursuing business unlawfully and in evading taxes due to the government, in violation of Section 253(b) of the Tax Code.
MAPTRA CORPORATION was assessed a total deficiency tax liability for TY 2009 and 2010 in the aggregate amount of P68.51 million, broken down into: Income Tax – P29.25 million (2009) and P26.25 million (2010); and VAT – P6.59 million (2009) and P6.42 million (2010).
The case against MANILA AEROSPACE PRODUCTS TRADING CORPORATION and its President and Managing Head HILARIO B. DE VERA is the 114th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.