BIR files tax evasion charges against construction firm execs

MANILA, July 31 (PNA) - The Bureau of Internal Revenue (BIR), under its Run After Tax Evaders (RATE) program, on Thursday filed tax evasion charges before the Department of Justice against two executives of a construction company.

BIR officials identified the suspected tax evaders as Dennis S. Masigan and Natalie Ng Masigan in their capacity as president and corporate secretary, respectively, of DSM Construction & Development Corp. (DSM).

Masigan and Ng reportedly failed to file and pay the correct income tax and value-added tax (VAT) for 2006. The duo also reportedly failed to supply the correct and accurate information in their 2006 income tax return.

Also charged with the couple was Eldrin M. Masigan in his capacity as vice-president for operations of the corporation.

DSM is a domestic corporation registered with the Securities and Exchange Commission engaged in the business of general construction located at No. 41 Victoria Ave., corner 10th Street, New Manila, Quezon City.

The corporation is likewise being sued for income tax and value-added tax deficiencies for taxable year 2006 amounting to P 52,473,951.02 and P 16,064,142.97, inclusive of increments, as civil liability.

The charges stemmed from the failure of DSM to report to the BIR the P80M compromise settlement it received in full from Mega World Globus Asia, Inc. (Mega World) in 2006.

The settlement was at that time considered as the “construction industry’s largest arbitration award” for unpaid billings claimed by DSM against Mega World on construction contracts with the latter corporation.

The construction contract was for architectural, interior and finishing works of the condominium project called “The Salcedo Park Twin Towers,” a 47-storey two building project located at H. V. Dela Costa St., Salcedo Village, Makati City. (PNA)
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