LTO 7's tax fraud complaint against 5 bike dealers endorsed to BIR
CEBU CITY—The investigation into the alleged tax fraud hurled against motorcycle dealers owned by a Mindanao-based family is now in the hands of the Bureau of Internal Revenue (BIR).
This after the Department of Finance (DOF) has officially endorsed to the BIR, which was tasked to look into the complaint that was initiated by Land Transportation Office (LTO) 7 regional director Victor Emmanuel Caindec.
In the endorsement letter dated September 13, 2021 that was recently received to RD Caindec, Finance Revenue Operation Group Deputy Executive Director III Jayson Lopez, asked BIR Commissioner Caesar Dulay to take appropriate action on the complaint against Du Ek Sam Inc., Desmark Corporation, DES Marketing, Inc., Premio Corporation, and DES Strong, Inc.
It was last September 8 when Caindec wrote Finance Secretary Carlos Dominguez and Dulay about alleged cheating that deprived 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.”
Attached in the complaint were the transaction receipts of the alleged irregularities committed by the five motorcycle dealers.
Caindec has also filed 10 counts of cyber libel cases against the same dealers for accusing him of demanding P500 for each motorcycle registration from these dealers.
Earlier this year, the Senate Blue Ribbon Committee chaired by Senator Richard Gordon has also investigated the same issue.
“All of the actions taken are consistent with our perspective that the quantum of evidence and documents uncovered by LTO7's investigations into specific dealer malpractices suggest that the complex and intricate abuse of the agency's MAIRDOEs program was meant to mask and perpetuate a potentially large-scale corporate tax evasion process,” said Caindec.
“I will pursue and I will prevail, in the interest of truth and justice, especially to the millions of ordinary, helpless Filipino motorcycle owners who have been deprived of their rights to due and fair process in the protection of their rights to motorcycle ownership by dealers who illegally charge exorbitant interest rates, deny buyers proper ownership registration documents and worse, deliberately cheat the government of taxes,” Caindec added.