Home » RATE » Engineer sued for tax evasion for grossly underdeclaring income received

Engineer sued for tax evasion for grossly underdeclaring income received


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Engineer sued for tax evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against ENGINEER RUBEN UY YU (ENGR. YU) for willful attempt to evade or defeat payment of tax and for deliberate failure to supply correct and accurate information in his Income Tax Returns (ITR) for Taxable Years (TY) 2007 and 2008, in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code). 

ENGR. YU is the sole proprietor of RYU Construction with business address at 232 Cruzada, Legazpi City.

Investigation and documents (contracts, checks and certifications) obtained from Third Party Information (TPI) provided by clients and different government agencies revealed that RYU Construction had several construction contracts/projects completed in 2007 and 2008. Among said documents obtained is a list of all government and private contracts completed by RYU Construction which was submitted to the Bids and Awards Committee (BAC) of Tabaco City.

Information gathered showed that in 2007, clients Mr. Chi San Uy and Zafire Distributors, Inc. paid RYU Construction a total amount of P14.33 million (net of 12% VAT). Likewise in 2008, the said clients, together with Buddhist Compassion Relief, made income payments to RYU Construction amounting to P52.0 million (net of 12% VAT).

A comparison of the aforecited amounts with the income declaration of ENGR. YU in his ITRs showed that he deliberately failed to declare his true and correct income for TY 2007 and 2008. ENGR. YU substantially underdeclared his gross receipts in 2007 by 157.05% or P8.76 million and by 816.72% or P46.33 million in 2008 after declaring only P5.57 million and P5.67 million in 2007 and 2008, respectively.

For his acts and omissions in violation of the Tax Code, ENGR. YU was sued for a total income tax liability for taxable years 2007 and 2008 amounting to P39.43 million, inclusive of surcharges and interests, broken down as follows: 2007 – P6.74 million; and 2008 – P32.69 million.

The case against ENGINEER RUBEN UY YU is the 133rd 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. 10, Legazpi City.

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