Home » BIR » Tax dodging SMART and PLDT distributor charged for unreported purchases

Tax dodging SMART and PLDT distributor charged for unreported purchases


Merchant willfully evading paying taxes

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against SEVERINO CRUZ ROBLES (ROBLES) for two (2) counts of willful attempt to evade or defeat taxes for taxable year (TY) 2007 and 2008, eight (8) counts of deliberate failure to file returns for Income Tax and Value Added Tax (VAT) for TY 2007 and 2008, and one (1) count of failure to register as VAT Taxpayer, in violation of Sections 254, 255 and 275, in relation to Section 236(G)(1), of the National Internal Revenue Code of 1997, as amended (Tax Code). 

ROBLES is the sole proprietor of S. ROBLES MERCHANDISING (SMR) with business address at No. 390 Ilang Ilang St., Cofradia, Malolos City, Bulacan. ROBLES is engaged in the business of wholesaling food, beverage and tobacco. 

The case against ROBLES arose from information obtained by BIR investigators assigned in Calasiao, Pangasinan from SMART and PLDT in the course of its investigation of “Robles Merchandizing.” The telecommunications companies furnished information on the purchases of said business entity but clarified that the same was owned by respondent ROBLES and not by a certain Danilo Robles of Pangasinan. 

Investigation disclosed that based on the certifications provided by SMART and PLDT, ROBLES was also engaged in the business of selling SIM Packs and eLoad/prepaid cards and that he made purchases of said products from the two telcos amounting to P332.44 million and P164.15 million in 2007 and 2008, respectively. 

Records of the BIR showed, however, that ROBLES failed to declare the said purchases since the last Income Tax Return (ITR) he filed was for TY 2004.  

Using the cost-to-sales ratio of 90.59% obtained from his 2004 ITR, investigators computed the undeclared sales of ROBLES at P366.96 million in 2007 and P181.20 million in 2008. 

For his willful failure to file his tax returns despite his substantial purchases in 2007 and 2008, ROBLES defrauded and deprived the government of taxes in the aggregate amount of P537.58 million, inclusive of surcharges and interests.


ROBLES was held liable for Income Tax amounting to P265.14 million for TY 2007 and P119.28 million for TY 2008. He was likewise subjected to VAT of P104.66 million and P48.50 million for TY 2007 and 2008, respectively. 

The case against SEVERINO CRUZ ROBLES is the 116th 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. 5, Caloocan City. 

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