By Benjamin Pulta
MANILA – The Department of Justice (DOJ) on Thursday said it has filed a PHP176 million tax evasion case against one of the country’s top government contractors over the alleged use of ghost receipts.
In a news release on Thursday, the DOJ said eight information against Hilmarc’s Construction Corporation before the Court of Tax Appeals (CTA) on Feb. 26 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.
Justice Secretary Jesus Crispin Remulla said the criminal cases, which stemmed from the complaint filed by the Bureau of Internal Revenue (BIR) before the DOJ, were filed against the said corporation and its officers for allegedly using fictitious receipts from ghost companies to maliciously evade the payment of taxes.
“The Department of Justice, after careful review of the pieces of evidence, found prima facie evidence with reasonable certainty of conviction to charge Hilmarc’s and its corporate officers Efren Canlas, Robert Henson, and Cristina Elisse Canlas.”
Aside from criminal violations, Hilmarc’s also faces civil liabilities amounting to PHP176,363,284.77 in basic tax liabilities, the DOJ said.
According to the DOJ, Hilmarc’s made it appear that the fraudulent receipts/invoices issued by Ghost Companies (Unimaker Enterprises Inc. and Everpacific Incorporated) came from legitimate transactions.
Consequently, it said fraudulent receipts/invoices were used to claim input tax in its value-added tax (VAT) returns, and as an expense in its Income Tax Returns filed with the BIR.
Remulla said such scheme ultimately had a negative impact on the tax collection of the BIR, resulting in billions of losses to the government.
“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,” he said.
“More importantly, this is also a perfect opportunity to emphasize that government contractors are not in any way exempt from faithfully complying with their tax obligations. As a matter of fact, the State expects from them, more than anyone else, the highest quality of diligence in following tax laws,” he added.
The DOJ said warrants of arrest against the corporate officers of Hilmarc’s are expected to be issued “in the soonest possible time. (PNA)
