Spain prosecutors call for 8-year sentence for Shakira

BARCELONA -- Prosecutors in Barcelona said Friday that they would seek a prison sentence of more than eight years against global music superstar Shakira, after she rejected a plea deal on accusations of tax evasion.

Prosecutors are demanding a fine of nearly 24 million euros on the 45-year-old "Hips Don't Lie" songstress, who is accused of defrauding the Spanish tax office out of 14.5 million euros ($14.7 million) on income earned between 2012 and 2014.

The court will now need to decide on holding a trial and set a date. 

Prosecutors say Shakira moved to Spain in 2011 when her relationship with FC Barcelona defender Gerard Pique became public but maintained official tax residency in the Bahamas until 2015.

Shakira has slammed the "complete violation of her rights" and "abusive methods" by the prosecutors and say they were "insisting on claiming money earned during my international tours and the show 'The Voice'" on which she was a judge in the United States, when she was "not yet resident in Spain."

Shakira was on the singing competition show between 2013 and 2014.

Shakira's defense team argues she moved to Spain full time only in 2015 and has met all tax obligations.

She says she has paid 17.2 million euros to the Spanish tax authorities and she has "no debt to the treasury for many years."

Agence France-Presse

ByteDance says India's freeze on bank accounts is harassment - court filing

MUMBAI - China's ByteDance has told an Indian court that a government freeze on its bank accounts in a probe of possible tax evasion amounts to harassment and was done illegally, according to a filing seen by Reuters.

ByteDance in January reduced its Indian workforce after New Delhi maintained a ban on its popular video app TikTok, imposed last year after a border clash between India and China. Beijing has repeatedly criticized India over that ban and those of other Chinese apps.

An Indian tax intelligence unit in mid-March ordered HSBC and Citibank in Mumbai to freeze bank accounts of ByteDance India as it probed some of the unit's financial dealings. ByteDance has challenged the freeze on the four accounts in a Mumbai court.

None of ByteDance India's employees have been paid their March salaries due to the account freeze, said two people familiar with the matter. The company told the court it has a workforce of 1,335, including outsourced personnel.

In the 209-page court filing lodged on March 25, ByteDance told the High Court in Mumbai the authorities acted against the company without any material evidence and gave no prior notice, as required by Indian law, before such "drastic action".

Blocking accounts "during the process of investigation amounts (to) applying undue coercion," ByteDance argued. It is "intended, improperly, to harass the petitioner."

India's Directorate General of Goods & Services Tax Intelligence, and the finance ministry which oversees it, did not immediately respond to requests for comment over the weekend.

The details of the tax investigation have not previously been reported. The tax agency told ByteDance last year it had reasons to believe the company suppressed certain transactions and claimed excessive tax credits, the filing shows.

ByteDance declined to comment on its court filing but told Reuters on Tuesday it disagrees with the decision of the tax authority. HSBC declined to comment, while Citibank did not respond.

ADVERTISING, OTHER DEALS SCRUTINISED

The court declined to grant ByteDance immediate relief in a brief hearing on Wednesday. The next hearing is scheduled for Tuesday.

The investigation centres on potential evasion of taxes related to online advertising and other financial dealings between ByteDance India and its parent entity in Singapore, TikTok Pte Ltd. TikTok did not respond to an email seeking comment.

ByteDance told the court its India workforce includes 800 people working in its "trust and safety" team that supports activities like content moderation overseas.

The company has "robust business plans in India and is not contemplating winding up," it said, urging the court to lift the freeze on the accounts.

The tax agency started investigating the company in July. It inspected documents at the company's office and summoned and questioned at least three executives, the filing says. Authorities also asked ByteDance to submit documents, including invoices and agreements signed with some clients.

ByteDance representatives "appeared multiple times" before tax officers and provided documents, the filing says.

TikTok, one of India's most popular video apps before it was banned, has faced scrutiny around the world.

Under then-President Donald Trump, the United States alleged the app posed national security concerns. The new administration of Joe Biden has paused a government lawsuit that could have resulted in a de facto ban on TikTok's use there.

-reuters-

Vice chair of S. Korea's Lotte Group found dead in apparent suicide

The vice chairman of South Korea's troubled Lotte Group was found dead Friday, police said, in an apparent suicide amid a widening corruption probe into the country's fifth largest business conglomerate.

The body of Lee In-Won was found hanging from a tree near a hiking trail in the eastern town of Yangpyeong.

A four-page letter -- apparently a suicide note -- was found in his car, expressing loyalty to the group's chairman Shin Dong-Bin and denying allegations that the firm had avoided huge sums of tax and created slush funds.

Lee was a key suspect in an alleged tax evasion scam worth hundreds of millions of dollars.

An official probe into the retail and hotel giant widened in June when prosecutors raided the offices of 15 subsidiaries, before issuing summons to a number of executives.

In South Korea, it is not unusual for a high-profile suspect to commit suicide when he is the subject of an investigation.

In 2003, Chung Mong-Hun, then chairman of the country's No. 2 conglomerate Hyundai Group, jumped to his death from his office building after being interrogated over the group's secret transfer of $500 million to North Korea to secure business deals.

A year later, an executive of Daewoo business group Nam Sang-Guk jumped off a bridge into the Han River in Seoul after being questioned over corruption allegations.

Last year, businessman Sung Wan-Jong hanged himself, leaving a note suggesting he had offered bribes to powerful elite players including former Prime Minister Lee Wan-Woo.

source: www.abs-cbnnews.com

White House to crack down on shell companies in US

WASHINGTON, United States - The United States announced measures Thursday to crack down on the use of shell companies inside this country that can be used for tax evasion and money laundering.

The White House said it would close loopholes that allow foreigners to open anonymous US-incorporated companies, and advance legislation requiring banks, brokers and other financial institutions to know and keep records on who actually owns accounts.

New laws will also be proposed requiring companies themselves to know and report their true owners.

The move comes amid a rising tide of government support around the world for fighting tax evasion and other financial crimes that is enabled by the lack of transparency in the banking system.

It also follows shortly after the embarrassing Panama Papers leak of thousands of documents from a Panama law firm showed just how common it is for wealthy people and criminals to hide and move money through anonymous shell companies and little-regulated tax havens.

Powerful officials, including the leaders of Russia, Iceland, Britain and Argentina, were linked by the Panama Papers to offshore tax havens.

The White House said in a statement that the new steps add to international efforts at greater transparency in the global financial system, "so that criminals and tax cheats cannot hide their activities using anonymous shell companies and other legal entities."

"These efforts are critical to preventing criminals from using the global financial system to launder proceeds from corruption or other illegal activities, finance criminal activity or even terrorism, evade international sanctions regimes, or evade taxes."

The Panama Papers, the White House added, "underscore the importance of the efforts the United States has taken domestically, and the efforts we have undertaken with our international partners, to address these shared challenges."

The Panama Papers release focused attention on the fact that a number of US states permit the creation of companies and trusts where the identities of the beneficial owners are unknown, and that foreigners have been using them to bring possibly tainted money into the United States.

The White House also said it would press Congress to pass legislation that would reciprocate the US requirement that banks in foreign countries provide the US Treasury information on any American-owned accounts.

That would then require US banks to provide information to foreign countries on their nationals with US accounts.

source: www.abs-cbnnews.com

Jeane Napoles refuses to enter plea in tax evasion case

MANILA - Jeane Catherine Napoles, daughter of alleged pork barrel scam mastermind Janet Lim Napoles, refused to enter a plea during her arraignment for a P17.4 million tax evasion case at the Court of Tax Appeals.

The refusal of Napoles to enter a plea prompted CTA 3rd Division Associate Justice Esperanza Fabon-Victorino to enter a ''not guilty'' plea on her behalf.

The younger Napoles was earlier charged with tax evasion after she failed to file income tax returns in 2011 and 2012.

The younger Napoles supposedly bought a condominium unit at the Ritz Carlton in Los Angeles, California for $1,280,000 (P54.73 million) in July 2011.

Her tax liability has ballooned to about P32 million due to non-payment and interest.

Napoles' lawyers agreed to the arraignment without prejudice to their pending motion for reconsideration.

In an interview after the arraignment, Napoles lawyer Stephen David reiterated their point that Napoles is unemployed and is therefore not required to pay income tax.

Napoles is also facing another tax case, which is for the non-filing of income tax returns (ITR). She also refused to enter a plea in that case. The two tax cases are now consolidated at the 3rd Division.

At the height of the pork barrel scam, the younger Napoles was criticized after she was seen flaunting her lavish lifestyle via social media amid allegations that her mother stole public funds by forging illegal deals with lawmakers.

source: www.abs-cbnnews.com

BIR goes after Ensogo, CashCashPinoy

MANILA – The Bureau of Internal Revenue (BIR) has filed separate criminal complaints against the operators of online shopping sites Ensogo and CashCashPinoy for alleged failure to pay the correct taxes.

The BIR said charges were filed against Ensogo Inc., its president Krit Srivorakul and treasurer Xelynne de Lara for willful failure to remit taxes and deliberate failure to pay taxes from October 31, 2011 to October 31, 2014 amounting to P36.1 million, inclusive of surcharge, interest, and compromise penalty.

Ensogo provides marketing services to its merchants, which are engaged in the leisure, catering and entertainment industries.

It serves as a withholding agent mandated to withhold taxes on various income payments to its suppliers and to withhold taxes on the compensation of its employees, and an Electronic Filing and Payment System (eFPS) taxpayer.

However, BIR said investigators discovered that while Ensogo electronically filed its withholding tax and value-added tax (VAT) returns, it “deliberately, willfully, and continuously failed” to remit taxes withheld and/or pay the corresponding withholding taxes and VAT due thereon, whether electronically or manually resulting to considerable revenue losses for the government.

The Ensogo website sells a selection of products, services and travel offers at discount prices to customers in the Philippines, Hong Kong, Indonesia, Malaysia, Singapore and Thailand.

Ensogo, on the other hand, was founded in 2010 and has a registered office at the Bonifacio Global City.

CashCashPinoy says it is paying taxes

Charges were also filed against Moonline Inc., which is engaged in the sale of products and services through the deals website CashCashPinoy, its president Frederic Elie Levy and treasurer Bernadette Levy for willful attempt to evade or defeat tax, and deliberate failure to supply correct and accurate information in its income tax returns (ITR) for taxable years 2011, 2012 and 2013.

The case against Moonline Inc. stemmed from the BIR's campaign to improve revenue collections to meet its collection target by capturing into the tax net the sale of products and services through online websites.

The BIR said that based on its investigation, Moonline underdeclared its correct taxable income by 23 percent or P9.31 million in 2011, by 240 percent or P111.09 million in 2012, and by 181 percent or P129.88 million in 2013.

Moonline was also sued for an aggregate income tax liability amounting to P132.51 million, inclusive of surcharges and interests.

In a statement, Moonline denied the allegations, saying it has paid the proper taxes.

"Our company has always paid the proper taxes as any law abiding business in the Philippines should. In addition to this, Since 2011, Moonline is audited every year by the firm KPMG. We have not been officially notified of any complaints against us for alleged failure to pay the correct taxes. Should there be additional requirements from the Bureau of Internal Revenue, we are ready to comply with them," the company said.

Moonline’s CashCashPinoy was founded in 2011 and holds its offices in Paseo De Roxas, Makati City.

source: www.abs-cbnnews.com

Italian court quashes Dolce & Gabbana fraud convictions

ROME - The Italian Supreme Court on Friday overturned fraud convictions and 18-month jail terms against celebrated fashion duo Domenico Dolce and Stefano Gabbana, their company announced.

"We have always been honest and we are extremely proud of this recognition by the Italian Court of Justice. Viva l'Italia," the two fashion house chiefs said in a statement.

"The Italian Supreme Court of Justice found Domenico Dolce and Stefano Gabbana not guilty of tax evasion," a company press release said.

In April an Italian appeals court had upheld a guilty verdict against Dolce and Gabbana for evading taxes totaling 200 million euros ($277 million).

Dolce and Gabbana, whose celebrity clients include Beyonce and Madonna, were accused of having transferred control of their brands to a shell company in Luxembourg in 2004 and 2005 to avoid paying Italian taxes.

Prosecutors had argued that setting up the Luxembourg company Gado -- an acronym of the surnames of the two designers -- while the operation was being run out of Italy was a bid to defraud the state.

They were found guilty in June 2013, and given 20-month jail sentences, which they appealed.

Dolce and Gabbana were originally accused of tax evasion of around one billion euros, but the court ruled that just 200 million euros of that sum was relevant.

On Friday the Supreme Court annulled the conviction, declaring that the prosecution case was "unfounded" and ending the case, Italian media reported.

source: www.abs-cbnnews.com

Lionel Messi to be prosecuted for tax fraud

MADRID - A Spanish court will push ahead with the process of prosecuting Argentina and Barcelona forward Lionel Messi for alleged tax evasion despite a recommendation from the public prosecutor the charges be dismissed.

The prosecutor argued in June that Messi's father Jorge was responsible for the family's finances and not the four-times World Player of the Year.

However, the court in Barcelona has decided that Lionel Messi could have known about and approved the creation of a web of shell companies that were allegedly used to evade taxes due on income from image rights.

The judge in the case ruled that the case against both Messis should continue, according to a statement published on Monday.

Messi and his father were accused last year of defrauding the Spanish state of more than 4 million euros ($5.4 million) by filing false returns for the years 2006 to 2009. They have denied wrongdoing.

One of the world's highest-paid athletes, Messi earns just over $40 million a season in salary and bonuses, according to Forbes magazine, as well as about $23 million from sponsors.

The magazine has him as the fourth top-earning athlete behind boxer Floyd Mayweather, Real Madrid footballer Cristiano Ronaldo and basketball player LeBron James.

source: www.abs-cbnnews.com

Jeane Napoles files counter-affidavit on tax raps from London

MANILA - The condominium unit in upscale Ritz Carlton in Los Angeles, California maybe under her name but Jeane Catherine Napoles, the most high profile of alleged "pork" scam architect Janet Lim Napoles' children, insists that the P54.73 million property is actually owned by her parents.

Now in London, as her eight-page counter-affidavit on tax evasion charges submitted to the Department of Justice (DOJ) on Friday shows, Napoles denied non-payment of income taxes to the Philippine government for taxable years 2011 and 2012, the same years records show she acquired the California property and a lot in Bayambang, Pangasinan where she has a P1.49 million share.

Napoles subscribed to her counter-affidavit before Consul-General Senen Mangalile of the Philippine Embassy in the United Kingdom. Her lawyer submitted the document to handling fiscal Assistant State Prosecutor Stewart Allan Mariano.

The Bureau of Internal Revenue (BIR) slapped the younger Napoles with a P32.06 million tax evasion complaint, alleging that she did not file any income tax return (ITR) for the above-mentioned years.

The BIR also said that no donor's tax nor estate tax was paid by Ms. Napoles to prove that the properties were given to her as gifts or donations.

The expenditure method of investigation was used by the BIR in arriving at Ms. Napoles' alleged tax liability: her unreported income was established by comparing the amount of money she spent to purchase the properties and her unreported income.

The BIR claims Ms. Napoles acquired a tax identification number (TIN) in 2008, but has not filed any ITR ever since.

The preliminary investigation into the complaint against Ms. Napoles will resume on Feb. 18, to coincide with the hearing on her parents' separate tax evasion case.

The BIR is running after P44.68 million in unpaid taxes from Mrs. Napoles, while her husband, Jaime, faces a P16.43 million tax evasion case.

source: www.abs-cbnnews.com

Jeane Napoles charged with tax evasion

First, her parents Janet and Jimmy Napoles; now, it's the turn of Jeane Napoles to be charged with tax evasion before the Department of Justice (DOJ).

The Bureau of Internal Revenue (BIR) charged the younger Napoles with violations of the National Internal Revenue Code (NIRC) for an alleged total tax liability of P32.06 million, inclusive of surcharges and interests, for taxable years 2011 and 2012.

BIR Commissioner Kim Henares said Napoles was able to acquire a condominium unit at the Ritz Carlton in Los Angeles, California worth P54.73 million; and has a share, equivalent to P1.49 million, in a Bayambang, Pangasinan property purchased in 2012.

"She, however, did not file any income tax return (ITR) in 2011 and 2012; nor were there any records of returns filed that will prove that gifts, bequests or devices were given to her.

"There was no donor's tax or estate tax paid either," Henares said.

The BIR used the Expenditure Method of Investigation, where Napoles' unreported income was established by comparing the amount of money she spent to purchase the properties and her unreported income.

“The presumption is to be able to buy something worth P54.73 million, she would have earned an income net of taxes of P54.73 million. This is a conservative estimate because hindi pa namin binibilang yung gastos mo para mabuhay ka, kung nagpapa-party ka gabi gabi,” she said.

Henares said Napoles acquired a tax identification number (TIN) with the BIR in 2008, but has not filed any ITR eversince.

The charges against Jeane Napoles is the 191st filed by the bureau under its Run After Tax Evaders (RATE) program under the Aquino administration.

Ritzy lifestyle

Janet Lim Napoles, who has been implicated in the P10-billion pork barrel and Malampaya fund scandal, earlier confirmed that she bought the Ritz Carlton unit in Los Angeles for her daughter as a reward for doing good in school.

She also admitted giving her daughter a Porsche Cayenne and a Porsche Boxster.

The younger Napoles earlier came under fire after her Instagram photos showed expensive cars she received from her parents during her birthday, debut and graduation from college.

The photos also show expensive watches, jewelry, clothing, and shoes.

The BIR has also filed tax evasion charges against Janet Lim Napoles and her husband.

source: www.abs-cbnnews.com

Businessman in hot water for tax evasion

MANILA, Philippines - A Novaliches-based businessman is in hot water for tax evasion.

The Bureau of Internal Revenue on Thursday filed a criminal complaint with the Department of Justice against businessman Lamberto Obogne for tax evasion from 2009 to 2012.

Obogne is the owner of Bentoy Electrical Rewinding Shop and Bertmond Enterprises, with registered address at No. 1151 Quirino Hi-way, Kaligayahan, Novaliches, Caloocan City.

A BIR investigation found that Obogne did not declare the proper sales in his tax returns from 2009 to 2012. The BIR sent letters to various companies that engaged his services, which revealed that Obogne earned P40.47 million from 2009 to 2012. However, in his tax return, he only declared P9.96 million in sales.

Under Section 248(B) of the Tax Code, an underdeclaration of taxable sales, receipts or income by more than 30% of that declared per return constitutes a prima facie case of fraud tantamount to tax evasion.

The BIR said Obogne failed to pay the correct amount of taxes amounting to P18.4 million, inclusive of surcharges and interests.

This is the 188th case filed under the BIR's Run After Tax Evaders program.

source: www.abs-cbnnews.com

Before flaunting your Ferrari or Birkin on Facebook, read this

MANILA - Social media is changing the way the Bureau of Internal Revenue (BIR) gets tips on alleged tax evaders as citizens now tap Facebook, Instagram or Twitter to send anonymous reports.

"Even without social media before, there will be people who write to us that say, for example, I have a neighbor who has 10 cars which are high-end... but he doesn't seem to be paying taxes. That has been happening in the past," BIR Commissioner Kim Henares told ANC's Headstart on Wednesday.

"But the thing now is it's more instant... Even with people they don't really know, when they see it on Facebook, they e-mail it to us... So social media [has become] another platform for lifestyle checking," she continued.

Henares said there is nothing wrong in posting a picture of your million-peso bag, your new Ferrari car, or of your recent trip to Europe. But she stressed Filipinos should be responsible in paying the right taxes for the items they are acquiring.

"There's nothing wrong to post pictures... It's not only our attention [you're attracting] but other people's attention, too. And they text us or call us saying, there's this person who flaunts this or that," Henares said.

The BIR has taken on an aggressive campaign against tax evaders in its bid to meet its collection targets and shore up revenues for the government.

Henares explained that the tax bureau does not differentiate between people--may they be doctors, lawyers, businessmen, or actors--found to have tax liability before the government.

"First, there has to be something that triggers our attention, then we investigate. Then based on the investigation and the data we receive and gather, that's when we decide whether to file a tax evasion case or just a deficiency," Henares said.

The trigger, she said, can easily be an expose on a person's wealth amassed on suspicious grounds, or when the BIR's data gathered through its "advanced" IT system show irregularities on someone's income tax filing.

In recent weeks, Filipinos on social media have expressed disappointment as social media accounts of the daughter of Janet Lim Napoles, the alleged brains behind the P10-billion pork barrel scam, showed photos of her Porsche car, luxury bags, and apparent shopping sprees abroad.

Henares recounted that the ongoing lifestyle on Napoles was not triggered by her daughter's photos on social media but by the earlier expose on the alleged pork barrel scam days earlier.

"For Janet Lim Napoles, the trigger was the expose. That triggered the need to investigate... But after that, there were a lot of other things that came out and that will necessitate us to look into it also," she said.

source: www.abs-cbnnews.com

Tax evasion raps filed vs Donna Cruz's husband

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint against Cebu-based ophthalmologist Dr. Potenciano Sto. Domingo Larrazabal, the husband of actress Donna Cruz, for tax evasion.  

In a statement, the BIR said Larrazabal failed to supply the BIR with correct and accurate information in his income tax returns for 3 years, 2009-2011.

The BIR received third party information that Larrazabal got a total of P29.14 million in professional fees from PhilHealth from 2009 to 2011. However, he only declared P4.72 million income during the 3-year period.

The BIR said Larrazabal should have registered as a value added tax payer and filed the required quarterly VAT returns, since his earnings were above the threshold required to register as a VAT taxpayer.

"Larrazabal underdeclared his income, did not pay the correct income tax on it and failed to pay the VAT and file his VAT returns," the BIR said.

The BIR said Larrazabal's deficiency taxes for the three-year period stood at P21.14 million.

The government has been stepping up its efforts to run after tax evaders, filing cases against high-profile figures such as actress Solenn Heussaff and PBA players Jimmy Alapag and Jared Dillinger. Although none of which have led to a conviction, BIR Commissioner Kim Henares said the filing of cases against tax evaders are already having an effect on Filipinos.

The BIR has declared "war" on professionals and self-employed persons who don't pay the right taxes.

source: www.abs-cbnnews.com

Solenn: I am an honest person

MANILA – Hours after it was first reported that the Bureau of Internal Revenue filed a tax evasion case against her, TV host and actress Solenn Heussaff insisted that she is not the type of person who cheats.

On her Twitter account on Thursday, Heussaff said: “I'm an honest person. As transparent as it gets. Someone made a mistake and I have to fix it.”

She also told one of her followers that she pays her taxes. “I'm ordinary too. And I do [pay my taxes]. Now I know not to give 100% trust,” she said.

Earlier today, the BIR filed a P3.6-million tax evasion case against Heussaff, who had previously joined the agency's tax campaign events.

The complaint, filed before the Department of Justice, said Heussaff failed to supply correct and accurate information in her tax returns in 2011 when she declared a gross income of only P6.73 million and a taxable income of P3.3 million.

"Heusaff's underdeclaration is more than 30 percent and is prima facie evidence of fraud," the BIR said, noting investigations showed the model received income payments amounting to P13.38 million in 2011.
"The BIR assessed her deficiency tax liability at P3.6 million, including surcharge and interest," the agency continued.

The BIR is also filing charges against Heussaff's accountant, Teofilo C. Magno, Jr. for his certification of his client's financial statement.

source: abs-cbnnews.com

Vice Ganda offers to help Ryan Bang on tax woes

MANILA, Philippines -- Comedian Vice Ganda expressed support to fellow "It's Showtime" host Ryan Bang, who is now facing tax evasion raps.

"Ryan always remember that you are special to me and I love you more than my boyfriend. Thanks for loving me like your real nanay. I will always be there for you. You may lose everything but you will never lose me and stop being jealous because I will never trade you for any guy. I love you baby. P.S. I will help you pay your utang to BIR because I love you. Love, Nanay Vice," Vice Ganda told Bang via the morning show "KrisTV."

Last month, the Bureau of Internal Revenue (BIR) filed tax evasion charges against Bang.

In a statement, the BIR said Bang did not file any income or percentage tax returns for 2010 and 2011, even though he received income from several companies, including ABS-CBN Corp., Summit Publishing and Studio 23.

Bang has vowed to resolve the issue with the BIR.

On Wednesday, the Korean host-comedian thanked Vice Ganda for his offfer.

"Siyempre Nanay Vice, I love you so much, alam na alam mo 'yon. Siyempre maraming salamat. Kahit anong problema dumarating sa akin, tumutulong ka sa akin. I love you so much alam mo yan," Bang said.

"KrisTV" host Kris Aquino also advised Bang to hire a good accountant to avoid any tax issues in the future.

source: abs-cbnnews.com

Actor Stephen Baldwin arrested for alleged tax evasion

Actor Stephen Baldwin was arrested Thursday in New York for alleged failure to file personal income tax returns from 2008-10, prosecutors said.

The Rockland County District Attorney's office told TMZ the "Usual Suspects" star owes more than $350,000 in back taxes.

"At a time when Rockland County and New York State face severe fiscal shortfalls, we cannot afford to allow wealthy residents to break the law by cheating on their taxes," the district attorney's office said in a statement. "The defendant's repetitive failure to file returns and pay taxes over a period of several years contributes to the sweeping cutbacks and closures in local government and in our schools."

Baldwin faces a possible four years in prison if convicted.

The actor is the younger brother of "30 Rock" star Alec Baldwin.

source: upi.com

Toshiba unit, Pagcor concessionaire face tax evasion raps

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint for tax evasion against against a local unit of Japanese electronics giant Toshiba and a PAGCOR concessionaire.

In a statement, the BIR said it filed a criminal complaint for tax evasion against Toshiba Plant Systems and Services Corp. (Philippines) before the Department of Justice for failing to pay the correct taxes in 2007. The charges were against Toshiba Plant general manager Akio Sugawara, and its resident agent, Rodolfo M. Bausa.

The BIR is seeking the payment of P58.11 million in deficiency taxes from Toshiba for taxable year 2007.

The BIR has already garnished Toshiba’s accounts in five banks, Banco de Oro, the Bank of Philippine Islands, China Banking Corporation, Metropolitan Banking Corporation and United Coconut Planters Bank, to collect on the taxes. However, it was only able to collect 136,364.47 from BPI, since the other banks claimed Toshiba had no existing accounts.

In August 2008, the BIR first asked to examine Toshiba's books for 2007, but it was ignored. The BIR even ignored a subpoena duces tecum issued on February 12, 2009, which prompted the agency to file a criminal case against Toshiba's officers.

During its audit of Toshiba's plant in Better Living, Paranaque, the BIR discovered it had failed to report P20.18 million in sales for 2007. Further examination of its certificates of creditable tax withheld showed an accumulated sales of P58.74 million and unsupported carry-over losses from taxable year 2006 in the amount of P27.7 million.

The BIR assessed Toshiba's total tax liability at P58.74 million, which the company did not contest nor pay.

"Despite such repeated demands and lapse of considerable length of time, Toshiba has obstinately failed and adamantly refused to pay its long overdue deficiency tax assessments for 2007 to the prejudice of government," the BIR said.

Meanwhile, the BIR also filed tax evasion charges against Lilia Gonzales, who owns Yasiok Dimsum Food, for tax deficiencies worth P41.42 million for 2008 to 2010.

Gonzales is a concessionaire of Philippine Amusement and Gaming Corp.'s (PAGCOR) Casino Filipino, but she failed to declare her income when she did not file income tax returns for the taxable years 2008 to 2010.

source: abs-cbnnews.com

Rotarty Club foundation, prominent businessmen face tax evasion case

MANILA, Philippines – A 40-year old foundation formed by the Rotary Club of Makati, as well as prominent businessmen comprising its officers, are facing tax evasion charges after allegedly passing off as a donation part of the revenues earned from the lease of a 20,063 square meter property in Paranaque City.

The Bureau of Internal Revenue (BIR) on Thursday filed a P47 million complaint before the Department of Justice against the Makati Rotary Club Foundation Inc. (MRCFI) and its officers, namely Felix Amparo, Jose Bengzon III, Federico Borromeo, Jr., Larry Boyer, Juan Carlos, Jr., Ramon Diokno, Tomas De Leon, Robert Kuan, Ricardo Librea, Conrado Marty, Alfredo Parungao, Antonio Quila, Wellington Soong and Jesus Tambunting.

BIR Commissioner Kim Jacinto-Henares said the foundation evaded tax payments by splitting these into rentals and donations.

The foundation’s lease contract with Fedders Koppel for the 2000-2004 period provides for a lease of P4 million for 2000 that increased to P4.9 million by 2004 and an annual donation of P2 million.

The contract covering the 2005-2009 period provided for an annual lease of P4.2 million plus value-added tax and annual donations. The contract provided for a donation of P3 million in 2005, P3.2 million in 2006, P3.3 million in 2007, P3.6 million in 2008 and P3.9 million in 2009.

Classifying part of the payment as donation is a tax saving scheme since the donor is liable to pay the tax, according to the BIR.

Given this scheme of splitting the payment, MRCFI’s P27 million donation didn’t form part of the computation of the foundation’s corporate income tax and value added tax (VAT) liabilities for the period 2000 -2009.

The Rotary Club of Makati said it won the first of two Rotary International Significant Achievement Awards for having organized the foundation. The club credits its success through the years to its foundation, which used to earn rental income from a three-storey arcade at the Makati Commercial Center.

In recent years, the foundation reported that it earns an annual P20 million in rentals from two properties, one of which is in Paranaque. A third property in Guadalupe Viejo, Makati is home to the foundation’s headquarters.

source: interaksyon.com