BIR charges LC builder with tax evasion

By Leilanie G. Adriano

Staff Reporter

SHOWING that they are not only going after boxing icon Emmanuel “Manny” Pacquiao, the Bureau of Internal Revenue has filed tax evasion charges against a Laoag City-based construction firm on May 8.

The charges stemmed from the contractor’s failure to declare the correct taxable income from a real estate developer in 2009.

Revenue district officer Simplicio Cabantac confirmed this on May 9 saying the BIR central office filed a criminal complaint with the Department of Justice against Constantino Llanes Jr. for willful attempt to evade tax, for failure to file and pay Income Tax Return (ITR) and Value Added Tax (VAT) Returns in 2009—all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code)..

Llanes is the sole proprietor of LME builders with registered address at Barangay No. 47, Bengcag in Laoag City.

According to Cabantac, the investigation of Llanes was initiated through a letter of notice issued for taxable year 2009.

The LN indicated discrepancies discovered as a result of the computerized matching conducted by the BIR.

Due to Llanes’ failure to refute discrepancies, an access letter was sent to the real estate developer requesting for a certification of the income payments it made to Llanes which revealed he was paid P9.90 million from August to December in 2009.

Also, the BIR Revenue District Office No. 01 in Laoag City showed that despite earning a substantial amount, Llanes failed to file his ITR in 2009 as well as his VAT Returns for the second, third and fourth quarters of the same year. During the first quarter of the same year, the BIR found that Llanes only declared P339,852.23 as his gross revenue.

In view of this, Llanes was assessed an aggregate deficiency tax liability of P9.95 million inclusive of surcharges and interests, broken down as follows:  P7.21 million for income tax and P2.74 million for VAT.

According to Cabantac, Llanes is the first to be charged with tax evasion in Laoag City and the 243^rd under the Run Against Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim Henares.  

When asked for comment, Imee Llanes, husband of the respondent said JME builders have yet to make an official statement as to the tax evasion charges.