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Since they were only paying for value added tax (VAT) instead of gross receipts tax (GRT), Philrem Service Corporation which has been implicated in the laundering of $81 million in stolen Bangladeshi money owes the government P35.61 million in taxes.

Because of this, Bureau of Internal Revenue (BIR) Commissioner Kim Henares has filed before the Department of Justice (DOJ) criminal complaints against Philrem and its excutives, namely, president Salud Bautista and treasurer Michael Bautista.

The cases that were filed last April 21, 2016 were attempt to evade payment of GRT, deliberate failure to file percentage tax returns (PTR), and unlawful pursuit of business for taxable years 2005 to 2014, in violation of 254, 255, and 258 of the National Internal Revenue Code of 1997 (Tax Code), as amended.

“The one that really highlighted that there is a violation is their own admission in the senate hearing…because they said they were paying VAT when they are not supposed to be paying VAT. So we had to look at their papers,” Henares told reporters

The Commissioner said that Philrem is liable to pay a total GRT of P35.6 million including surcharges from 2005 to 2014.

She explained that Philrem is registered with the Bangko Sentral ng Pilipinas (BSP) as a remittance agent and has been classified as a Non-Banking Financial Institution (NBFI) which pays for GRTs and not VAT.

“The gross failure of Philrem to register, declare and pay GRT showed a clear intent and purpose on its part to evade the payment of the correct amount of taxes,” Henares said.