Golden Donuts Incorporated (GDI) and four of its high-ranking officers are facing a complaint for "willful attempt to evade or defeat tax" and for "deliberate failure to supply correct and accurate information" in its income and value-added tax returns, according to a press statement from the BIR.
Named in the complaint filed with the Department of Justice are GDI president Walter C. Spakowski, treasurer Miguel H. Prieto, chief financial officer Pedro E. Paraiso and vice president for finance and administration Jocelyn V. Santos, said the release.
The case was sparked by "confidential information" received by the BIR that GDI "made substantial under-declaration on its sales."
A probe later allegedly found the under-declaration was by 39 percent.
"The under-declaration of sales was noted by comparing the donut sales declared by GDI vis-a-vis sales derived from the grossed-up value of franchise fee paid to Dunkin Donuts of America, Inc.," the BIR said.
The BIR's investigation also found that GDI "under-declared" its royalty income by over P38.9 million, and that almost P133.2 million of its royalty income should be treated as active, instead of passive, income that is subject to regular corporate income tax.
A case of under-declaration of income, according to the BIR, is considered substantial when it exceeds 30 percent of the amount declared.
Investigation also showed that sales invoices issued by various suppliers had been "intentionally altered, in a desperate attempt to conform to substantiation requirements."
GDI allegedly claimed the altered invoices "as deductions from its income and as input VAT credits" worth almost P99.3 milion and P11.9 million, respectively.
Some invoices also allegedly did not contain the tax identification number of GDI, the BIR also said.
In a rant against media outfits ABS-CBN and the Philippine Daily Inquirer in April 2017, Duterte brought up Dunkin' Donuts alleged tax deficiency and its ownership ties to the broadsheet.
“Inquirer ang may-ari ng Dunkin Donuts, alam mo ba iyan? At may utang iyan silang taxes. Inayos ni Kim Henares, walang binayad. Kung may binayad, kaunti lang,” Duterte said referring to the former Bureau of Internal Revenue commissioner.
“Ang Inquirer may utang iyan... Kaya Monday I will give—not only Inquirer—I will give them a deadline. I need money to run this country. I need money to build houses,” he added
P1.1-B tax evasion of Dunkin’ Donuts
4/ 5Oleh BNP Correspondent