Bus magnate draws 14 years in jail

Published March 23, 2018, 10:00 PM

by Mario Casayuran and Vanne Elaine Terrazola

By Jun Ramirez

A Metro Manila bus operator charged with four separate tax evasion cases by the Bureau of Internal Revenue (BIR) has been found guilty by the Court of Tax Appeals (CTA) and sentenced up to 14 years imprisonment.

In a 36-page consolidated resolution, the court’s Second Division also fined Samuel S. Santos, president of Kingsam Express, Inc. of Valenzuela City P800,000 for submitting incorrect financial statements and filing fraudulent income tax returns for taxable years 2008 and 2009.

The court, however, left to the BIR the discretion to assess the deficiency income and value-added taxes from the bus company which was slapped with separate fine of P400,000 for the two-year period.

Court records showed the BIR uncovered the massive under declaration through the expenditure, or networth method of investigation.

This audit procedure allowed under the Tax Code proceeds on the theory that funds which a taxpayer spends in a given year exceeds his reported income become undeclared if the source of the money is unexplained.

The bus firm declared income of about P2.8 million for the two-year period but was able to acquire at least 25 units of Hyundai and King Long buses worth P50 million.