Tuesday, June 28, 2011

For willful failure to pay tax, BIR “prescribes” tax evasion case against PRO HEALTH INTERNATIONAL

“Willful failure to pay tax is dangerous to your health.”
This was the “prescription” given by the Bureau of Internal Revenue (BIR) to PRO HEALTH INTERNATIONAL, INC. (PRO HEALTH) when it filed today a criminal complaint for tax evasion against the latter at the Department of Justice for willful failure to pay tax as defined and penalized under Section 255 in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997, as amended.

Charged with PRO HEALTH was its President VIRGILIO B. CASTILLO in his capacity as a responsible corporate officer. PRO HEALTH was incorporated under Philippine laws and its registered address is at 184 A. Aguirre Avenue, BF Homes, Parañaque City.
Investigation showed that the BIR issued a Letter of Authority (LOA) authorizing the examination of the books of accounts and other related accounting records of PRO HEALTH covering all internal revenue taxes for taxable years 2002 and 2003. Three mandatory notices asking PRO HEALTH to present its books of accounts and other accounting records were also served. However, despite receipt of the LOA and the three notices, the subject corporation did not submit the requested documents.
PRO HEALTH was subsequently issued a Preliminary Assessment Notice (PAN). Failing to controvert the findings of the BIR, a Final Assessment Notice (FAN) was served asking the former to pay deficiency Income (P24.34M) and Value-Added Taxes (P7.25M) in the sum of P31.59 million for taxable years 2002 and 2003.
Again, despite receipt of the FAN, PRO HEALTH failed to settle its tax liabilities thus making the said notice final, executory, unappealable and demandable. Accordingly, a Preliminary Collection Letter and a Final Notice Before Seizure were sent giving the corporation a last opportunity to finally settle its tax liabilities. Despite such demands and the lapse of a considerable length of time, it still failed and adamantly refused to pay its tax liabilities.
The obstinate failure and refusal of PRO HEALTH to pay its long overdue deficiency tax assessments amounting to P31.59 million constituted willful failure to pay taxes, a criminal violation of the Tax Code.
The case against PRO HEALTH INTERNATIONAL and its President VIRGILIO B. CASTILLO is the fifty-first (51st) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise the third (3rd) RATE case of Revenue Region No. 8, Makati City. (reytdlc)

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