EconomyForex

Senate panel formally asks BIR to probe suppliers for tax liabilities that could reach P7.5B

1 Mins read

THE SENATE Blue Ribbon Committee on Thursday adopted a resolution urging the Bureau of Internal Revenue (BIR) to form a task force that will conduct a special audit on the returns submitted by companies that bagged pandemic supply contracts worth P42 billion to determine their potential tax liabilities.

Minority Leader Franklin M. Drilon, who made the motion for the resolution,

was prompted by the admission of the country representative of Xuzhou Construction Machinery, which bagged over P2.23 billion worth of contracts from the Procurement Service of the Department of Budget and Management, that the company did not pay any income tax last year.

“Apart from the overpricing, apart from the unqualified suppliers and apart from the preference on foreign suppliers, it is incumbent upon this committee to look into the tax liabilities of these companies. This is something that we have to look at,” Mr. Drilon said.

He estimated the total potential tax liability at P7.5 billion.

Some of these firms are Pharmally Pharmaceutical Corp., which has been at the center of the committee’s probe, that cornered over P10.40 billion; Element Trade Limited with P6.99 billion; Sunwest Construction and Development Corp. with P5.22 billion; and Hafid N’ Erasmus Corp. with P1.91 billion.

The committee also approved a motion to publicize the income tax returns of officials of Pharmally and Xuzhou as well as that of former economic presidential adviser Michael Yang.

“It appears like there could be violations of our tax laws. We should examine the potential tax liabilities of these companies, officials and employees,” Mr. Drilon said. — Alyssa Nicole O. Tan

Related posts
EconomyForex

Samsung Care+ Premium is the perfect addition to make household investments last

3 Mins read
Samsung ensures your TVs and appliances stay at their best with extended protection and proactive, expert care As premium devices become essentials…
EconomyForex

Cash remittances hit 7-month high at $3.18 billion in July

2 Mins read
PHILIPPINE STAR/ MIGUEL DE GUZMAN By Katherine K. Chan FILIPINOS ABROAD sent more money home in July, hitting a seven-month high as…
EconomyForex

Peso to rise as Fed woes drag dollar

4 Mins read
BW FILE PHOTO THE PHILIPPINE PESO is expected to end the year stronger against the US dollar as the greenback remains under…
Power your team with InHype
[mc4wp_form id="17"]

Add some text to explain benefits of subscripton on your services.

Leave a Reply

Your email address will not be published. Required fields are marked *