The Bureau of Internal Revenue (BIR) on Thursday filed a tax evasion case to the Department of Justice (DOJ) against Customs fixer Mark Taguba and businessman Kenneth Dong who were earlier linked to the controversial P6.4-billion “shabu” shipment from China to the Philippines.
The two individuals were charged with separate tax evasion cases amounting to P850.57 million and P11.406 million. BIR said they failed to file income tax returns, value-added tax or percentage tax from 2003 to 2017, and did not declare any income for 2013 and 2016.
“In his (Dong) testimony before the Senate, he admitted, among others, that main resource person Mark Ruben G. Taguba II charged him P170,000 per container van for which he earns a referral fee of P5,000 to P10,000 per container van,” BIR Commissioner Caesar Dulay noted.
“He also testified before the Senate that he does not pay any tax on the income he earned from his ventures with Taguba and that he contributed millions of pesos to candidates during election campaigns,” the BIR chief added.
According to documents from Land Transportation Office, BIR showed that Dong paid P850,000 for a 2010 Toyota Fortuner in 2013, P4.5 million for a 2010 BMW, and P2.4 million for a 2013 Ford Expedition in 2016.
BIR also said that the Chinese businessman also bought a P3.55-million townhouse in Parañaque City in 2013.
“Further, he had received compensation income in the years 2013 and 2015 from Asuki Weighing System Inc. amounting to P19,650 and P148,122, respectively,” BIR Chief Dulay noted.
“However, Dong did not file any income tax return, value-added tax return, or percentage tax return for the years 2003 to 2017 as per records of the BIR,” the BIR chief said.
“Using the expenditure method of tax investigation, it was discovered that Dong did not declare any income tax for taxable years 2013 and 2016,” he added.
In terms of Taguba, Dulay called him a “player” or “fixer” within the Bureau of Customs (BOC) who allegedly facilitated importation of goods into the Philippines for a fee. He added that Taguba earned P1.27 billion for 2016.
“As admitted under oath by Taguba in both congressional inquiries, his clients would pay him an ‘all-in’ sum ranging from P170,000 to P190,000 per container van,” the BIR chief said.
The official also emphasized that other individuals involved in the controversial illegal drug shipment are not off the hook yet and are also being investigated for possible tax evasion.