CEBU CITY – The Land Transportation Office Central Visayas (LTO-7) has asked the Bureau of Internal Revenue (BIR) to conduct a tax fraud investigation against one of the biggest motorcycle distributors in the Visayas and Mindanao.
LTO 7 regional director Victor Caindec also asked the Department of Finance to investigate the Du Ek Sam Inc., Des Marketing Inc., Des Strong Motors Inc., Desmark Corp., and Premio, all owned by Du family.
In his September 8 letter to BIR Commissioner Caesar Dulay, Caindec accused the Du family of “cheating the government of billions worth of revenue through corporate scheme aimed at defrauding the State and Local Government Units of what it is rightfully due.”
Caindec attached transaction receipts that allegedly showed irregularities committed by the five motorcycle distributors.
Caindec added that anomalous transactions were committed through “the issuances of double invoices containing different invoice numbers, dates, fraudulent misdeclaration of actual place of sale, and even total purchase price” of the sold motorcycles.
Caindec said the alleged irregularities that involved “billions of pesos” were discovered through the registration of the vehicles at the LTO-7.
Caindec has filed 10 counts of libel charges against the Du family, which is based in Northern Mindanao.
The cases stemmed from the joint statement of the five companies accusing Caindec of demanding P500 as grease money to hasten the registrations of their motorcycles.
Caindec has denied the accusation, saying it was a result of LTO 7’s intensive investigation against motorcycle dealers allegedly involved in tax fraud.
The issue has been investigated by the Senate Blue Ribbon Committee chaired by Senator Richard Gordon.