06 November 2014 Lady metal trader “smelted” for tax evasion The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against NANCY B. SZE (SZE) for Willful Attempt to Evade or Defeat Tax, Deliberate Failure to Supply Correct and Accurate Information in her Income Tax Return (ITR), and Willful Failure to Supply Correct and Accurate Information in her Quarterly Value Added Tax (VAT) Returns for taxable year 2010, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code). Respondent SZE is the sole proprietress of SOLER METALCRAFT MARKETING. She is engaged in the retail of metal products with registered addresses at No. 1319 Soler St., Sta. Cruz, Manila and 74 Rizal Avenue Extension, Grace Park, Caloocan City. In order to ascertain the true income received by SZE, investigators sent access letters to business entities that engaged her services. Replies to said access letters received from SZE’s twenty-seven (27) withholding agents/payors revealed that income payments made to her for taxable year 2010 amounted to P10.58 million. A perusal of the ITR filed by SZE for 2010 revealed, however, that her declared gross income only added up to P6.89 million. A comparison and evaluation of SZE’s declared gross income for 2010 as against the income she earned for the same year as certified by her income payors showed that she substantially underdeclared her income for taxable year 2010 by 53.61% or P3.69 million. Under Sec. 248 (B) of the Tax Code, under-declaration of taxable income by more than 30% constitutes a prima facie case of fraud. As a consequence of her acts and omissions, SZE was sued for an aggregate tax liability for taxable year 2010 amounting to P4.07 million, inclusive of surcharges and interests, broken down into: Income Tax - P2.57 million; and VAT – P1.5 million. The case against NANCY B. SZE is the 314th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of the National Investigation Division. (reytdlc) #
Posted on: Thu, 20 Nov 2014 05:25:41 +0000
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