BIR Ruling [DA-070-98]

March 4, 1998 BIR RULING [DA-070-98] Mr. Danilo A. Lihaylihay 22 11th Avenue Grace Park, Caloocan City S i r : This refers to your letter dated January 7, 1998, in relation to your undated letter which you filed with the Legal Service on December 15, 1997, requesting this Office to resolve against Philtranco Service Enterprises, Inc. (Philtranco, for brevity) the "PRO-FORMA" legal issues raised by its counsel, with a view to assessing subject taxpayer the total amount of P22,417,460.38 representing deficiency income and common carrier's tax for the year 1990, initially developed through your Confidential Information No. 2574. In connection therewith, please be informed that this Office has already filed a criminal action against the responsible officers of Philtranco for violations of the NIRC docketed as Criminal Case No. 95-2336 to 95-2340 pending before the Metropolitan Trial Court of Pasay City and we are vent on prosecuting this case. The precise computation though and the assessment of the tax due from Philtranco is not a requirement for purposes of said criminal prosecution. ( Quirico Ungab vs . Hon . Vicente Cusi, Jr . , L-41919-24, May 1980 ) Your statement that "it would appear that there is a concerted effort to whitewash the tax liabilities of Philtranco in order to save the accused in the criminal case" is absolutely false. For your information, the hearing of said criminal case originally scheduled on January 21, 1998 was reset to February 24, 1998. The new Prosecutor handling the case has also requested our Revenue Officers for a briefing on January 30, 1998, apparently to insure its successful prosecution. Finally, rest assured that you will be paid the corresponding reward immediately after the tax legally found due from Philtranco has been collected. cdt Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)