Senator Richard Gordon has called for the immediate filing of tax fraud charges against five motorcycle dealers who purportedly defrauded the government of billions of pesos from selling motorcycles.
Gordon’s call stems from the result of the Senate Blue Ribbon Committee’s investigation into the delays that hounded the implementation of Republic Act No. 11235 or Motorcycle Crime Prevention Act earlier this year.
The Senate panel’s probe zeroed in on the Land Transportation Office’s (LTO) weak capability to detect motorcycle plate numbers that could be involved in the high number of “riding-in-tandem” cases.
But during the inquiry, it was discovered that some dealers failed to deliver official receipt/certificate of registration (OR/CR) to buyers and did not register the encumbrance over the unit.
Gordon noted the dealers report every sale as paid in full instead of installment for less paperwork and payment of taxes. Customers are then required to execute a promissory note which corresponds to the purchase on installment, which is a clear case of falsification, according to the lawmaker.
Gordon, who chairs the Senate blue ribbon panel, said the Department of Finance (DOF) has already endorsed to the Bureau of Internal Revenue (BIR) the filing of tax fraud charges agaisnt five motorcycle dealers or distributors.
“The BIR should lose no time in running after these motorcycle dealers who cheated the government of billions of pesos worth of revenue that could have been used in its pandemic response,” Gordon said.
“Because of the lack of database of motorcycle registration, people who are being murdered are losing their chance at justice because the LTO and the PNP (Philippine and National Police) could not identify the suspects properly,” he also said.