The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ARACELI BAGASBAS DUHAYLUNGSOD (DUHAYLUNGSOD) for willful attempt to evade or defeat tax, for deliberate failure to supply correct and accurate information in her Income Tax Return (ITR), and for willfully filing a return which is not true and correct, for taxable year (TY) 2005, in violation of Sections 254, 255 and 267 of the National Internal Revenue Code of 1997, as amended (Tax Code).
DUHAYLUNGSOD is the sole proprietress of ANGELLAND FRUITS AND VEGETABLES and ANGELLAND GENERAL MERCHANDISE with business address at Alley No. 4, Borbajo St., Talamban, Cebu City. She is engaged in the sales of perishable goods, particularly fruits and vegetables, to various hotels and restaurants in Cebu City and Lapu-lapu City.
The investigation of DUHAYLUNGSOD stemmed from a Letter Notice (LN) stating her tax discrepancies for TY 2005.
Pursuant to the LN, access letters were sent to the various customers of DUHAYLUNGSOD requesting for data on income payments to, and copies of official receipts or sales invoices issued by, DUHAYLUNGSOD.
Replies to said access letters from DUHAYLUNGSOD’s withholding agents/payors disclosed that she received income payments amounting to P7.53 million from Mactan Shangri-La Hotel & Resort, Inc. (P31,348.00), Waterfront Cebu City Casino Hotel, Inc. (P3.73 million), and Waterfront Mactan Casino Hotel, Inc. (P3.77 million). Information provided by the City Treasurer of Cebu City indicated that DUHAYLUNGSOD declared gross receipts amounting to P182,500.00 in 2005.
A comparison of the total income payments DUHAYLUNGSOD received as abovementioned with the sales she declared in her 2005 ITR amounting to only P433,789.00 revealed that she underdeclared her sales by P7.1 million or by 1,637%. Under the Tax Code, an underdeclaration of more than 30% is substantial and constitutes prima facie evidence of fraud tantamount to tax evasion.
DUHAYLUNGSOD was sued for a total deficiency income tax liability for taxable year 2005 in the aggregate amount of P5.6 million, inclusive of surcharges and interests.
The case against ARACELI BAGASBAS DUHAYLUNGSOD is the 117th 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. 13, Cebu City.