BIR filed a criminal complaint against Temps and Staffers, Inc for Tax Evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice against Temps and Staffers, Inc. (TSI), together with its president, Arturo C. Guerrero III and treasurer, Vivian A. Guerrero, for two counts of willful attempt to evade or defeat tax and eight counts of willful failure to supply correct and accurate information in its Income Tax and Value Added Tax Returns for taxable year 2009 pursuant to Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended (Tax Code).

TSI is a Securities and Exchange Commission-registered corporation located at the 2^nd Floor, SFI Bldg., 105 West Ave., Bungad I, Quezon City, whose primary business is to engage in manpower recruitment.

The TSI investigation was triggered by confidential information received by the BIR on the alleged tax evasion scheme perpetrated by TSI.

In the course of the said investigation, the BIR discovered that TSI received P122.34 million, P2.88 million, and P10.18 million from Samsung, BDO Insurance Brokers, Inc., and Globe, respectively, for the services it rendered during taxable year 2009. Said amounts totaling P135.40 million were gathered from the alpha list (1604-E) submitted by Samsung and schedule of purchases from BDO and Globe.

Compared against its gross receipts declaration with the BIR of P72.26 million in its 2009 Income Tax Return (ITR), TSI underdeclared its gross receipts by 72.55 percent amounting to P52.43 million.

The scheme of TSI was to underdeclare its gross receipts in its declaration resulting into a lesser taxable income in its ITR and VAT return and thus, lower tax liability.

TSI was assessed a total deficiency tax liability of P42.57 million, inclusive of surcharges and interests, broken down into: Income Tax–P29.98 million; and VAT–P12.59 million.

The case against Temps And Staffers, Inc. (TSI), together with its president, Arturo C. Guerrero III and treasurer, Vivian A. Guerrero is the 104^th filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.