DOJ orders filing of tax evasion cases vs CAP

The Department of Justice (DOJ) has ordered the filing of tax evasion and estafa charges against College Assurance Plan Inc. and Comprehensive Annuity Plans and Pension Corporation as well as its officials before the Court of Tax Appeals. In a statement released Wednesday, Bureau of Internal Revenue Assistant Commissioner Celia King said the filing of the tax evasion cases before the tax court was due to a DOJ decision denying the respondents' motion for reconsideration As early as July 2006, the DOJ had already issued a joint resolution directing the filing of criminal charges against CAP and CAP Pension before the CTA. However, the respondents filed a motion for reconsideration before the DOJ. King who heads the BIR Enforcement Service said the companies evaded the payment of taxes by adopting the scheme of self assessment and continuously filing their tax returns without making the corresponding payment. “Furthermore, CAP and CAP Pension’s omission to remit to the government the taxes withheld and act to retain the same taxes for its business operations amounted to misappropriation or conversion of the said funds for their own use constituting estafa punishable under the Revised Penal Code of the Philippines,“ she said. Also to be included in the charge sheets are CAP President Enrique Sobrepeña CAP Treasurer James Marsh Thomson, and CAP Assistant Treasurer Coronado Munasque. The BIR filed tax evasion and estafa charges against CAP and CAP Pension as well as it responsible corporate officers under Operation RATE (Run After Tax Evaders) way back in May of 2005. The complaint stemmed from the firm's failure to pay P53 million, and its non-payment of P32.5 million in withholding and value added tax (VAT) from May 2004 to June 2005. The DOJ has ordered the filing of three criminal charges against CAP for its failure to remit withholding taxes covering the return period of 31 May 2004 to 28 February 2005 as well as failure to pay VAT covering the return period of 30 June 2004 to 28 February 2005. The justice department also ordered the filing of estafa charges against CAP and its officials for misappropriating the amount representing the withholding taxes received in trust covering the return period of 31 May 2004 to 28 February 2005. On the other hand, CAP Pension would be charged for failing to remit withholding taxes covering the return period of 31 May 2004 to 28 February 2005 and for failing to pay VAT covering the return period of 30 June 2004 to 31 January 2005. Likewise, estafa charges would be filed against CAP Pension for misappropriating the withholding taxes received in trust covering the return period of 31 May 2004 to 28 February 2005.-GMANews.TV