BIR files tax raps vs firm for unexplained purchase of Wack-Wack property

The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint against a company for failing to pay taxes for buying a P92.66-million property in Mandaluyong in 2014.

In a complaint filed with the Department of Justice, the BIR said Jibetronic Trading Corp. (JTC) was able to purchase a house and lot in Wack-Wack Greenhills from Keystone Real Estate Development Corporation (Keystone) on January 14, 2014 despite having only a paid-up capital of P500,000.

The Deed of Absolute Sale was executed on the same date as the purchase of the property.

The BIR later found out that the firm only registered with the BIR on January 12, 2015, or a year after the purchase of the house and lot.

"Clearly, in the absence of any declared source of the purchase price of P92.66 million, the said amount is an undeclared income of JTC and must be subjected to income tax," said the BIR.

Charged was JTC president Jimmy Tang for "Willful Attempt to Evade or Defeat the payment of IncomeTax," and "Deliberate Failure to File its Income Tax Return (ITR)" for taxable year 2014.

This was in violation of Sections 254 and 255, in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997, as amended (Tax Code).

The BIR said JTC was sued for an aggregate deficiency income tax liability for taxable year 2014 amounting to P43.22 million, inclusive of increments.

The Cubao, Quezon City-based company is engaged in the business of wholesale of machinery, equipment and supplies. — Mark Merueñas/BM, GMA News