The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against REX CHUA CO HO (Co Ho) for five (5) counts of attempt to evade or defeat tax and five (5) counts of willful failure to supply correct and accurate information in his Annual Income Tax Returns (ITRs) and to pay the correct taxes, in violation of Sections 254 and 255 of the Tax Code.
Co Ho, a registered taxpayer with business address at No. 952 Ongpin Street, Sta. Cruz, Manila was included in the list given in November 30, 2010 by the Bangko Sentral ng Pilipinas (BSP) to the BIR containing the names of individuals who had gold and/or silver transactions with the BSP.
Documents show that Co Ho sold to the BSP in the years 2005 to 2009 (refined) gold and silver amounting to P4.95 billion and P6,470.30, respectively. A certification of the total sales and net payments received by Co Ho and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold and silver sold signed by him were obtained by the BIR from BSP.
Investigation by the BIR disclosed that Co Ho willfully failed to declare all his income in his Annual ITRs for taxable years 2005 to 2009. A comparison of the gross income he declared in his ITRs with the net payment he received from BSP in the years in question revealed he grossly under-declared his income by more than 30%.
Under Sec. 248 of the Tax Code, an under-declaration of taxable income by more than 30% constitutes a prima facie case of fraud.
Co Ho was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P3.1 billion, inclusive of surcharges and interests, broken down as follows: P169.22 million – 2005; P309.54 million – 2006; P844.97 million – 2007; P706.74 million – 2008; and P1,067.71 million – 2009.
The case against REX CHUA CO HO is the forty-fourth (44th ) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)
