Taguig Gold Trader caught for tax evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against FRANCOIS JOSEPH XAVIER RAST (RAST), proprietor of Rast Metalor Phils., for four (4) counts of attempt to evade or defeat tax; and four (4) counts of willful failure to supply correct and accurate information in his Annual Income Tax Returns (ITRs) and to pay the correct taxes, for Taxable Years (TYs) 2006, 2007, 2008, and 2009, in violation of Section 254 and Section 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

RAST, a registered taxpayer with business address at 708 VFP Bldg., II, Veterans Center, Taguig, was included in the list given to the BIR in November 30, 2012 by the Bangko Sentral ng Pilipinas (BSP) containing the names of individuals who had gold and silver sales transactions with the BSP.

Documents show that RAST sold to the BSP in the years 2006, 2007, 2008 and 2009 (refined) gold and silver amounting to P118.15 million, P209.54 million, P306.93 million and P238.06 million, respectively, or for a total amount of P872.68 million. A certification of the total sales and net payments received by RAST and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold and silver sold signed by him were obtained by the BIR from BSP.

Investigation by the BIR disclosed that RAST willfully failed to declare all his income in his Annual ITRs for TYs 2006 to 2009. A comparison of the gross income he declared in his tax returns with the net payment he received from BSP in the years in question revealed that he grossly under-declared his income by more than 30% (P775.07 million). The same conclusion was also uncovered from his Quarterly VAT returns for the said years in question.

Under Sec. 248 of the Tax Code, an under-declaration of taxable income by more than 30% constitutes a prima facie case of fraud tantamount to tax evasion.

RAST was assessed deficiency income taxes for four (4) taxable years in the aggregate amount of P558.03 million, inclusive of surcharges and interests, broken down as follows: P35.58 million – 2006; P146.87 million – 2007; P220.09 million – 2008; and P155.49 million – 2009.

The case against FRANCOIS JOSEPH XAVIER RAST is the 137th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.