BIR charges Jedvam Manufacturing Corp. for failure to pay taxes

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against Jedvam Manufacturing Corporation (Jedvam), its President Henry Chua Yu, Treasurer Norberto M. Duque, and Import Manager Joseph Yu for their willful failure to pay deficiency taxes for taxable years 2007 and 2008 despite demand, in violation of Section 255, in relation to Sections 253 (d) and 256, of the National Internal Revenue Code of 1997, as amended (Tax Code).

Jedvam is a domestic corporation incorporated with the Securities and Exchange Commission. It is primarily engaged in the manufacturing of goods such as various packaging containers, papers, kraftliner boards, and corrugated boards for industries utilizing materials such as yarn, plastic resins, HDPE, polypropylene resin, polyethylene resins, OPP film, paints for plastic, and other materials of similar nature.

Investigation records showed that Jedvam was issued a letter of authority (LOA) for the examination of its accounting records for all internal revenue taxes covering taxable years 2007 and 2008.

Despite the issuance of the LOA and three subsequent notices, Jedvam failed to submit the required documents. The BIR subsequently issued a subpoena duces tecum (SDT), but the same was also disregarded forcing the BIR to file a complaint with the city prosecutor of Quezon City.

The BIR obtained information from the Bureau of Import Services of the Department of Trade and Industry that Jedvam had importations amounting to P2.30 billion in 2007 and P2.70 billion in 2008.

The bureau assessed Jedvam a total deficiency tax amounting to P1.93 billion for the two-year period of 2007 and 2008 broken down into Income Tax of P0.4 billion, withholding tax of P0.02 billion and value added tax of P1.51 billion.

The BIR also issued Jedvam a Preliminary Assessment Notice and a Final Assessment Notice reflecting the said assessment. Jedvam never protested the assessments allowing the same to become final, executor, and demandable.

Despite the receipt of the requisite notices and the lapse of the reglementary period provided by law, Jedvam has willfully failed to pay the aforementioned deficiency tax liabilities.

The case against Jedvam and its officials is the 103^rd filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of Revenue Region No. 7, Quezon City.