BOVJEN TRANSPORT SERVICES, INC. / CARATING, Alberto G. II / CARATING, Geraldine P.
- Charged with willful attempt to evade or defeat taxes and deliberate failure to file Quarterly Percentage Tax Returns (PTRs) for taxable years 2009 to 2012, in violation of Section 254 and Section 255 in relation to Section 117 of the National Internal Revenue Code of 1997, as amended (Tax Code)
- BOVJEN is a corporation duly-registered with the Securities and Exchange Commission organized primarily for the purpose of rendering transportation services for the public. Its office address is at Balagtas, Bulacan.
- Preliminary investigation showed that BOVJEN is a grantee of a Certificate of Public Convenience and operates as a public transport for passengers along the route of Sta. Maria via NLEX-EDSA to Baclaran. BOVJEN has no records of PTRs filed and percentage taxes paid during the periods in question. It has, however, represented itself as engaged in trading and filed instead Value Added Tax (VAT) Returns from 2009 to 2012.
- By representing itself as engaged in the business of trading, BOVJEN took advantage of the creditable VAT system as a scheme to evade the payment of correct internal revenue taxes by paying nominal and insignificant amounts of VAT instead of the mandated percentage tax under Section 117 of the Tax Code which requires persons (includes juridical persons) who transport passengers for hire and other domestic carriers by land for the transport of passengers to pay a percentage tax equivalent to three percent (3%) of their quarterly gross receipts.
- An evaluation of the VAT Returns filed by BOVJEN with the BIR revealed that the subject transport company should have paid Percentage Tax amounting to P3.64 million for the four (4) year period instead of the measly-sum of P76,124.41 as VAT.
- As a result of BOVJEN’s fraudulent and willful acts, it evaded its obligation to pay proper internal revenue taxes in the total amount of P6.82 million, inclusive of surcharges and interests, broken down into: 2009 – P0.71 million; 2010 – P1.98 million; 2011 – P1.74 million; and 2012 – P2.39 million.
- The case against BOVJEN TRANSPORT SERVICES, INC., its President ALBERTO G. CARATING II and Treasurer GERALDINE P. CARATING is the 178th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of Revenue Region No. 5, Caloocan City.