DOJ files tax evasion raps vs. gov’t contractor over ghost receipts

The Department of Justice (DOJ) on Thursday said it filed charges against government contractor Hilmarc’s Construction Corporation and its officers before the Court of Tax Appeals (CTA) over the alleged use of ghost receipts.

According to the DOJ, it filed eight criminal informations against Hilmarc’s and its corporate officers Efren Canlas, Robert Henson, and Cristina Elisse Canlas for violation of Sections 254 (Attempt to Evade or Defeat Tax) and 255 (Failure to Supply Correct and Accurate Information) in relation to Sections 253(d) and 256 of the Tax Code on Wednesday.

It said Hilmarc’s is facing civil liabilities amounting to P176.3 million in basic tax liabilities. 

"Ghost receipts should have no place in the commerce of man as it hinders our growth and prosperity as a nation, may this filing of cases be a warning to those who continue to defraud the State of its due,” Justice Secretary Jesus Crispin Remulla said in a statement.

Remulla added the case shows government contractors are not exempt from complying with their tax obligations. 

According to the Justice Department, Hilmarc’s made it appear the fraudulent receipts issued by ghost companies came from legitimate transactions.

“Consequently, the said fraudulent receipts/invoices were used to claim input tax in its VAT Returns and as an expense in its Income Tax Returns filed with the BIR. Such scheme ultimately had a negative impact on the tax collection of the BIR,” the DOJ said.

“Taken as a whole, this fraudulent act of using receipts from fake transactions resulted in billions of losses to the government,” it added.

The DOJ also said it expects arrest warrants to be issued against the respondents in the case soon. 

In February 2019, Hilmarc’s was awarded the contract for the new Senate building or being the “bidder with the single calculated and responsive bid.”

Construction of the new Senate building started in February 2020.

Hilmarc’s is also being linked to the alleged overpriced Makati City Building Parking 2 and Makati City Science Building in 2014 to 2016. — RF, GMA Integrated News