3 industrial firms face tax evasion charges

Justice Secretary Jesus Crispin Remulla disclosed on Monday that multiple charges had been filed before the Court of Tax Appeals (CTA) against three industrial corporations for maliciously and willfully using fraudulent business tactics to intentionally defraud the state of its tax dues.

The charges stem from a complaint filed by the Bureau of Internal Revenue (BIR) with the Department of Justice (DoJ) as part of the BIR's Run After Fake Transactions (RAFT) program. A total of 20 criminal cases were filed against the corporations and their officers for purchasing and using fictitious receipts from ghost companies to evade paying taxes.

The suit, lodged before the tax court on 24 January 2025, includes 14 information against Total Metal Corporation, four against Equator Energy Corporation, and two against Limhuaco Metal Industrial Incorporated. The charges are for violations of Sections 254 and 255, in relation to Sections 253(d) and 256 of the National Internal Revenue Code of 1997, as amended.

"The proper payment of taxes is the responsibility of every Filipino to ensure that government services remain continuous, available and efficient at all times. Defrauding the government of its due is akin to robbing our citizens of the essential services they deserve and ultimately need," Remulla emphasized.

Meanwhile, warrants of arrest against the corporations and their corporate officers are expected to be issued in the near future.