MANILA — The Department of Justice (DOJ) is set to submit for resolution the PHP1.118-billion tax evasion complaint filed by the Bureau of Internal Revenue (BIR) against Golden Donuts, Inc. (GDI), exclusive franchiser and license grantee of US company Dunkin Donuts.
Assistant State Prosecutor Charlie Guhit said the preliminary investigation of the case concluded on Aug. 3, during which, both parties in the case submitted their respective memoranda listing the documentary evidence.
Facing tax evasion raps are officers Walter Spakowski, Miguel Prieto, Pedro Paraiso, and Jocelyn Santos for violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC) or willful attempt to evade or defeat tax, and for deliberate failure to supply correct and accurate information.
The BIR filed the complaint last Feb. 23 before the DOJ alleging the company is liable for non-payment of PHP1.118 billion in income tax, value-added tax (VAT), and expanded withholding tax — including surcharges and interests — for the year 2007.
Marissa Cabreros, deputy commissioner of the BIR’s Legal and Inspection Group, said under the NIRC, the prescription period in filing tax cases involving fraud is 10 years from discovery, adding that the investigation against GDI was prompted by “confidential information” they received only in 2017.
With the record, the BIR said its office has issued a Letter of Authority to examine GDI’s books and other accounting records.
BIR said the result of the investigation showed altered sales invoices while other invoices did not contain GDI’s income tax number.
“Through this scheme, GDI was able to claim the altered invoices as deductions from its income and as input VAT credits in the amount of PHP99,297,036.47 and PHP11,915,644.38, respectively,” the BIR said.
“This is an independent evaluation conducted by an officer on the basis of the information provided to us,” Cabreros said.
She added that while tax evasion cases have a prescription period of 10 years under the law, the period in this case starts only from last year when the alleged fraud was discovered.
The complaint lodged against GDI is the 131st filed under the Run After Tax Evaders (RATE) program, under the leadership of Commissioner Caesar Dulay.
GDI has denied accusations of tax evasion, saying its tax liabilities for 2007 had been settled with the BIR as of 2012.
The company said it appears that the complaint was filed based on an alleged 39 percent under declaration of sales, which arose from the attribution of sales of franchises to GDI.
GDI argued that all its franchisees are business entities separate from GDI that are responsible for paying their own taxes. (Christopher Lloyd Caliwan/PNA)
