BIR files tax evasion raps vs. Zaldy Co-owned firm over P22. 71-B tax deficiency
The Bureau of Internal Revenue (BIR) has filed a tax evasion complaint before the Department of Justice (DOJ) against Sunwest Incorporated, formerly known as Sunwest Construction and Development Corporation,. . .
The Bureau of Internal Revenue (BIR) has filed a tax evasion complaint before the Department of Justice (DOJ) against Sunwest Incorporated, formerly known as Sunwest Construction and Development Corporation, over an alleged P22. 71 billion in unpaid deficiency income taxes covering the period from 2019 to 2024. The complaint also names Sunwest chair and president Aderma Angelie Alcazar and treasurer Cesar Buenaventura, who were identified by the BIR as corporate officers responsible for the company’s tax compliance during the period under investigation. Sunwest was previously owned by former Ako Bicol party-list Representative Zaldy Co. According to the BIR, the company and its officers allegedly committed willful tax evasion by underdeclaring taxable income, claiming fictitious purchases and unsupported operating expenses, and improperly availing of creditable withholding tax credits in their income tax returns. The BIR said the alleged irregularities resulted in substantial revenue losses for the government. The case stemmed from a preliminary audit conducted by the BIR’s National Investigation Division, which compared Sunwest’s declared income with payment records from government agencies, including the Department of Public Works and Highways, the National Power Corporation, and the Philippine Ports Authority. After discovering significant discrepancies between government disbursement records and the company’s tax declarations, the BIR issued a Letter of Authority authorizing a full audit of Sunwest’s financial records. On Feb. 5, tax investigators served the company with a subpoena directing it to produce its accounting books, ledgers, and supporting documents. The BIR said Sunwest failed to fully comply with the subpoena, prompting investigators to invoke the “best evidence obtainable” rule, which allows tax authorities to determine tax liabilities using available third-party records when a taxpayer fails to provide the required documents. Based on its audit, the BIR found that Sunwest allegedly failed to report about P6. 29 billion in taxable income from 2019 to 2024. Investigators also disallowed approximately P36. 63 billion in claimed purchases, P3. 65 billion in operating expenses, and P291. 12 million in claimed creditable withholding tax credits after the company allegedly failed to present sufficient documentary support. The BIR said the adjustments resulted in a total deficiency income tax assessment of P22. 71 billion, inclusive of statutory surcharges, interest, and compromise penalties. #