Dec 182014

The Bureau of Internal Revenue on Thursday filed a P46.6 million tax evasion case against a supplier cake at the Makati City hall cafeteria and the Ospital ng Makati.

Kimtun Chong, sole proprietor of Cups and Mugs Kitchenette, was accused of willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information in his annual income tax return for taxable years 2009, 2010 and 2011.

Cups and Cakes is the same supplier said to have provided the supposedly overpriced cakes that the city gives senior citizens on their birthday.

Whistleblowers against Vice President Jejomar Binay earlier claimed his daughter, Sen. Nancy Binay, had supplied the cakes, a claim the lawmaker denied.

Former Makati City Administrator Marjorie de Veyra earlier said the city government had been been getting the city’s cakes from their supplier Cups and Mugs since 2010.

These cakes have been delivered to some 100,000 senior citizens by the staff of the Social Welfare and Development Office.

An investigation by the BIR showed Cups and Mugs was engaged by Makati City to supply birthday cakes and cater food services in the Makati City Hall cafeteria and at Ospital ng Makati from 2009 to 2011.

In reply to an access letter sent by the BIR, the Makati City local government certified that it paid Cups and Mugs a total of P107.64 million.

“Investigators, however, discovered that despite earning a large amount income for the said years, he substantially underdeclared his correct and deliberately failed to pay the correct taxes,” said the BIR.

BIR records show that Chong declared a total gross income of only P43.23 million in his AITR from 2009 to 2011 broken down as follows: 2009 – P14.7 million, 2010 – P12.97 million, and 2011 – P16.08 million.

The BIR said Chong underdeclared his income by 153.59 percent or P21.77 million in 2009, 224.59 percent or P29.14 million in 2010 and 83.96 percent or 13.51 million in 2011.

The BIR said as a consequence of Chong’s acts and omissions, he was likewise sued for an aggregate income tax liability amounting to P46.6 million inclusive of surcharges and interest.

Whistleblower and lawyer Renato Bondal claims that cakes given to senior citizens by the Makati city government were overpriced. During a Senate committee earlier, Bondal said the cakes cost P1,000 each. 

Eleno Mendoza of the Makati city administration said the price of each cake is only P306.75. — Mark Merueñas/NB/JDS, GMA News

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