THE Bureau of Internal Revenue on Thursday slapped a P35.61-million tax evasion case against the controversial remittance firm Philrem Service Corp. that has been implicated in the $81 million stolen from the Bangladesh central bank and brought into the country.
The BIR filed a case before the Department of Justice against Philrem and its president Salud Bautista and treasurer Michael Bautista for trying to evade payment of the gross receipts tax (GRT), failure to file percentage tax returns (PTR), and illegal pursuit of business from 2005 to 2014.
In its complaint, the BIR said Philrem’s registered its line of business as “other land transport operation not elsewhere classified” but amended its primary business purpose with the Securities and Exchange Commission to become a money remittance firm of currency from abroad.
Philrem also registered with the Bangko Sentral ng Pilipinas to act as a remittance agent starting in 2005.
However, the complaint said despite this, Philrem still did not update its registration with the BIR.
“As a money remittance firm and classified by the Bangko Sentral ng Pilipinas as a non-banking financial institution, Philrem is subject and should be taxed for its gross receipts,” the complaint added.
The complaint noted that instead of filing the percentage tax returns and the gross receipts tax, it filed value added tax returns.
“The gross failure of Philrem to register, declare and pay the gross tax receipts showed a clear intent and purpose on its part to evade the payment of the correct amount of taxes,” the complaint said.
The BIR also said the company is also liable for unlawful pursuit of business since it failed to update its registration with the BIR when it amended its original purpose to become a remittance firm.
The BIR assessed Philrem’s liability in gross receipt taxes at P3.33 million in 2005, P6.61million in 2006, P 6.27 million in 2007, P5.46 million in 2008, P3.17 million in 2009, P2.59 million in 2010, P2.7 million in 2011, P1.85 million in 2012, P1.94 million in 2013 and P2.32 million in 2014.
In her testimony before the Senate Blue Ribbon Committee investigating the $81 million cyber heist, BIR Commissioner Kim Henares said Philrem had not been issuing legitimate receipts since its receipts did not show the features required by the BIR.
Henares made the statement when shown a copy of the receipts issued by Philrem to individuals and casinos it had remitted the $61 million, which is part of the $81 million taken from the Bangladeshi bank.
The BIR chief also said the company’s receipt is wrong since it continued to be registered as a land transport company and failed to update its registration when it is operating already as a remittance and foreign exchange company since 2005.
Henares also explained that since Philrem is a non-bank financial intermediary, it is required to pay a five percent gross receipt tax and not value added tax.
Philrem is a domestic corporation registered with the Securities and Exchange Commission (SEC) with office address at Unit 208 Cityland III, Herrera corner Esteban Sts., Legaspi Village, Makati City.
