The Bureau of Internal Revenue (BIR) today filed with the Department of Justice (DOJ) a complaint against REMEGIO B. DESCALSOTA, JR. (Descalsota, Jr.) 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.
Sometime in August 2010, Descalsota, Jr., a resident of B7-L30 Camella Homes, San Nicolas, Bacoor, Cavite, was included in the list given by the Bangko Sentral ng Pilipinas (BSP) to the BIR containing the names of individuals who had gold transactions with the BSP. He is a registered taxpayer of Revenue District No. 58, Batangas City engaged in the business of pawnshop operation under the trade name MRPC Pawnshop.
Descalsota, Jr. sold (refined) gold amounting to P861.16 million to BSP in the years 2005 to 2009. A certification of the total sales and net payments received by Descalsota, Jr. and copies of the Letters of Delivery and Sale detailing the number of pieces and the weight of the gold 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 total gross income he declared in his ITRs amounting to P352,760.50 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.
Descalsota, Jr. was assessed deficiency income taxes for five (5) taxable years in the aggregate amount of P592.8 million, inclusive of surcharges and interests, broken down as follows: P153.34 million – 2005; P136.18 million – 2006; P117.47 million – 2007; P117.95 million – 2008; and P67.86 million – 2009.
The case against REMEGIO B. DESCALSOTA, JR. is the forty-fifth (45th) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (reytdlc)
