The Department of Justice has been asked to prosecute a Batangas-based operator of the Small Town Lottery system of the Philippine Charity Sweepstakes Office for alleged tax evasion amounting to P959 million.
In a complaint filed with the DOJ, the Bureau of Internal Revenue accused officials of Batangas Enhanced Technology Systems Inc. of violating the National Internal Revenue Code.
Named respondents in the case are officials of BETSI led by president Benedicto Bulatao, Rolando Montecillo and Treasurer Jessie Cantos.
The was the first case filed by the BIR under its Run After Tax Evaders program since President Rodrigo Duterte assumed the post last June.
Bulatao served as president of the company from 2009 to 2013, while Montecillo served in the same position from 2014 to 2015.
The respondents were charged for willful attempt to evade or defeat the payment of tax, deliberate failure to supply correct information in its income tax return, willful failure to file value-added tax return, failure to register as a VAT taxpayer and failure to pay for documentary stamp tax from 2007 to 2015 in violation of the NIRC.
The BIR said they started its probe on the respondents after they received a confidential information on their alleged tax evasion.
The BIR complaint stressed that based on the data gathered during the investigation, BETSI underdeclared its correct taxable income by P3.61 million in 2007, P10.66 million in 2008, P14.05 million in 2009, P25.54 million in 2010, P52.03 million in 2011, P45.73 million in 2012, P28.38 million in 2013, P58.75 million in 2014 and P128.38 million last year for a total amount of P367.11 million.
“As a consequence of its acts and omission, BETSI, together with its responsible corporate officers, was held liable to pay an estimated aggregate tax liability in the amount of P959.96 million broken down into P199.02 million in income tax, P136.55 million in VAT and P624.39 in documentary stamp tax.
The BIR said the amount includes surcharges and interest of the tax liability of the respondents.
The RATE program was started by the BIR during the term of then-President Gloria Macapagal-Arroyo as a measure against suspected violators of the NIRC of 1997.