By Jun Ramirez

The Bureau of Internal Revenue (BIR) filed today P1.1-billion tax evasion case against a popular donuts company in Mandaluyong City and its four key officers for allegedly manipulating its financial statements to reduce value-added tax (VAT), income and expanded withholding tax payments.

In a criminal complaint filed with the Department of Justice, BIR Commissioner Caesar R. Dulay identified the respondents as Golden Donuts Inc. (GDI), Walter Spakowski, Miguel Prieto, Pedro Paraiso and Jocelyn Santos, president, treasurer, chief finance officer and vice president for finance, respectively.

GDI is the exclusive franchisee of Dunkin Donuts of America Inc. (DDAI) which granted the license to operate outlets in the country using the Dunkin Donuts system.

It can be recalled that a revenue officer who audited the case few years ago had filed graft charges against former top officials of the BIR for allegedly ignoring his assessment and collecting the huge deficiency tax of the firm.

The case arose when a confidential information was received by the BIR that GDI made substantial underdeclaration of its sales in 2007.

Investigation showed that sales invoices allegedly issued by various suppliers were intentionally altered. Some invoices did not contain the Tax Identification Number (TIN) of the GDI.

Through the scheme, the charged sheet stated the bakery was able to claim the altered invoices as deductions from its income and as input VAT credits amounting to P99 million and P11 million, respectively.

BIR legal and enforcement officials said such claim for deductions under the Tax Code should not have been allowed as the firm presented noncomplaint receipts or invoices.

Further investigation disclosed that GDI under declared its royalty payment to DDAI by more than P39 million.

They said declaration of income or overstatement of deductions by 30 percent and more is considered prima evidence of filing false return under the Tax Code.