Finance Secretary Carlos G. Dominguez III on Tuesday vowed to look into alleged reduction in the tax liabilities of food and beverage firm Del Monte Philippines Inc., (DMPI), which will run in parallel with efforts at the House of Representatives.
The reported reduction involves an amount just a few hundred million pesos lower than P30 billion and comes on the heels of earlier allegedly fraudulent tax shenanigans by a cigarette manufacturer.
In an interview, Dominguez said the Department of Finance (DOF) will look into how the manufacturing giant allegedly managed to deflate P29.6 billion worth of tax liabilities stretching from 2011 to 2013.
“We’re going to investigate it. The charges are going to be examined and our legal department will conduct the investigation,” he said
Much earlier, House Speaker Pantaleon D. Alvarez said he was preparing a resolution to investigate the matter, following a plunder case filed before the Office of the Ombudsman against Internal Revenue Commissioner Caesar R. Dulay and 17 other officials and personnel for allegedly reducing the tax liabilities of Del Monte Philippines Inc.
Ostensibly the same personalities had a hand in the cases filed against cigarette manufacturer Mighty Corp. that allegedly used fake-tax stamps to evade billions in excise taxes when the legislature resumes deliberations on July 24.
In his complaint, Danilo Lihaylihay said the Bureau of Internal Revenue (BIR) allegedly allowed Del Monte to pay only P65.4 million for taxable years 2011 to 2013 despite a three-year assessment reaching P29 billion in supposed tax-deficiency liabilities.
House Committee on Ways and Means Chairman and PDP-Laban Rep. Dakila Carlo Cua of Quirino said, “I support Speaker Alvarez’s strong stance against corruption. We will study the matter thoroughly so that we can bring out the truth. The Bureau of Internal Revenue should make a clear explanation on this. If not, they will be held liable.”
In a statement, the BIR said Dulay already ordered a review of the Del Monte case upon order to take appropriate action by the DOF acting on the endorsement of the Office of the President.
It appears that an investigation was initiated by BIR Deputy Commissioner Jesus Clint O. Aranas long before Dulay was told to take action on the letter of complainant Lihayhay.
“Aranas issued show-cause orders to some of the employees implicated in the said letter. In fact, his office, through the National Investigation Division, earlier received a copy of an anonymous letter complaint for which the commissioner was never informed. Instead, Aranas took cognizance of the complaint and immediately issued show-cause orders. The commissioner was informed and came to know about this only from tri-media,” the BIR said.
“The case of DMPI covering the subject taxable years did not reach the Office of the commissioner as they did not require any action on the part of the commissioner. Commissioner Dulay had no personal knowledge of the questioned assessments and payments made by [Del Monte],” the agency added.
Dulay has recommended that the Lihaylihay complaint be investigated by the DOF instead since he himself is mentioned as involved in the alleged anomaly.