The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against PAULINO GO PE (PE) for willful attempt to evade or defeat tax and for deliberate failure to supply correct and accurate information in his Income Tax Returns (ITR) for Taxable Years (TY) 2008 to 2010, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Likewise charged was independent Certified Public Accountant (CPA) MA. TERESA S. GARCIA (GARCIA) who certified the Financial Statements of respondent PE for TY 2008 to 2010, in violation of Section 257 of the Tax Code.

Respondent PE, sole proprietor of Archipelago Builders, is engaged in the construction business with business address at No. 29 North Avenue, Sto. Cristo, Quezon City.

Investigation revealed that 2008, 2009 and 2010 Alphalists from the Withholding Tax Division of the BIR showed that respondent PE earned from his clients income in the total amount of P644.50 million. Respondent’s clients include SM Investments, Corp., Zuellig Pharma Corp., Informatics College – Quezon City, Vista Residences, Inc., Household Development Corp., Multiflex RNC Phils., Inc., Filinvest Alabang, Inc., C-5 Mansions Dev’t Corp., Polyfoam-RGC Int’l Corp., Rowell Can Corp., and Stretch Distribution, Inc. Among said clients, Multiflex RNC Philippines, Inc. confirmed payments amounting to P62.25 million in 2009 while Filinvest Alabang, Inc. disclosed that it paid respondent PE P57.06 million in 2008 which amount did not appear in the aforecited Alphalists.

A comparison of the figures gathered by investigators with the declarations of respondent PE  filed with the BIR showed substantial underdeclaration of sales of more than 30% in the years in question. In 2008, data gathered showed he earned P116.90 million but reported only P24.40 million for an underdeclaration of 379% or P92.50 million. For 2009, he declared P22.44 million out of the P251.35 million he earned for an underdeclaration of 1,020% or P228.91 million. And in 2010, he understated his income by 625% or P186.58 million by declaring only P29.84 million out of P216.42 million.

Under the Tax Code, an underdeclaration of more than 30% is substantial and constitutes prima facie evidence of fraud tantamount to tax evasion.

Respondent PE was assessed an aggregate deficiency income tax for TYs 2008 to 2010 in the amount of P306.93 million, inclusive of surcharges and interests, broken down as follows: 2008 –P65.03 million; 2009 – P146.43 million; and 2010 – P95.47 million.

GARCIA, on the other hand, was included in the charge sheet for issuing an unqualified opinion in her certification of the 2008, 2009 and 2010 audited financial statements of respondent PE despite the latter’s aforementioned underdeclaration in his reported revenues/income for the said taxable years.

The case against PAULINO GO PE and his CPA MA. TERESA S. GARCIA is the 131st filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.