BIR files P1-B tax case vs Guo

THE Bureau of Internal Revenue (BIR) said that it filed criminal tax cases on Thursday, including one against dismissed Bamban, Tarlac Mayor Alice Leal Guo over an alleged tax deficiency exceeding P1 billion.

The case against Ms. Guo was the largest among the five cases, which together involved an estimated tax deficiency of more than P1.46 billion.

“The BIR will continue to pursue the filing and prosecution of cases against tax evaders, illicit traders, and delinquent taxpayers,” said BIR Commissioner Charlito Martin R. Mendoza in a statement on Thursday.

“These cases are about accountability and fairness, holding violators answerable under the law, while protecting the millions of taxpayers and businesses who comply and pay the correct taxes due.”

The BIR said that the investigation was prompted by Ms. Guo’s testimony in May 2024 where she admitted to owning various real properties, vehicles, and interests in several corporations.

The agency identified real properties, motor vehicles, a helicopter, bank transactions, shares of stock, and other acquisitions linked to Ms. Guo.

The investigation also showed that Ms. Guo failed to file Annual Income Tax Returns for five consecutive years despite substantial documented expenditures, acquisitions, and financial transactions during the same period.

“Using the expenditure method to reconstruct income, the BIR evaluated the available records and found that the submitted documents were insufficient to explain the magnitude of the expenditures and transactions identified during the investigation,” it said.

“The bureau concluded that Guo had undeclared income and failed to pay the corresponding income taxes due to the government,” it added.

As a result, Ms. Guo was charged for Attempt to Evade or Defeat Tax and for Failure to File Return and Pay Tax under the National Internal Revenue Code (NIRC).

Meanwhile, the agency also filed criminal charges against other respondents for unlawful possession of illicit cigarettes subject to excise tax involving tax deficiency of over P418.38 million.

“The case stemmed from an enforcement operation conducted in Belison, Antique, where three vehicles were intercepted and found transporting 574,980 packs of cigarettes covering several locally manufactured and imported brands, none of which bore the required Internal Revenue Stamps,” it said.

The respondents are charged for Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment and for Attempt to Evade or Defeat Tax, which carried potential imprisonment of up to 12 years and fines of up to P20 million.

Three other criminal charges were also filed for willful failure to pay assessed taxes for the taxable years 2017 and 2019 amounting to more than P41.8 million.

The BIR said the tax assessments for the three cases “had already become final, executory, and demandable after the respondents failed to settle their tax liabilities despite notices and demands for payment.”

“The respondents are charged under Section 255 of the NIRC for willful failure to pay taxes,” it added. — Justine Irish D. Tabile