Manila: The Department of Justice (DOJ) has initiated legal action against Hilmarc’s Construction Corporation, a leading government contractor, by filing a PHP176 million tax evasion case related to the alleged use of ghost receipts.
According to Philippines News Agency, the DOJ revealed that eight pieces of information were submitted against Hilmarc’s Construction Corporation before the Court of Tax Appeals on February 26. These filings pertain to violations of Sections 254 and 255 in relation to Sections 253(d) and 256 of the Tax Code, focusing on attempts to evade tax and failure to supply correct information.
Justice Secretary Jesus Crispin Remulla stated that the criminal charges arose from a complaint filed by the Bureau of Internal Revenue (BIR), accusing the corporation and its officers of utilizing fictitious receipts from ghost companies to evade taxes maliciously. The DOJ found sufficient evidence to charge Hilmarc’s and its corporate officers, Efren Canlas, Robert Henson, and Cristina Elisse Canlas, with a reasonable certainty of conviction.
In addition to the criminal charges, Hilmarc’s faces civil liabilities totaling PHP176,363,284.77 in basic tax liabilities. The DOJ claimed that Hilmarc’s falsely presented receipts and invoices from ghost companies, Unimaker Enterprises Inc. and Everpacific Incorporated, as legitimate transactions.
These fraudulent documents were allegedly used to claim input tax in value-added tax (VAT) returns and as expenses in income tax returns filed with the BIR. Remulla highlighted the negative impact of this scheme on the BIR’s tax collection, resulting in significant losses to the government.
Remulla emphasized that ghost receipts should not exist in commerce, as they hinder national growth and prosperity. He warned that this case serves as a deterrent to those attempting to defraud the state. He also stressed that government contractors must adhere to tax obligations with the utmost diligence, as expected by the state.
The DOJ announced that arrest warrants for the corporate officers of Hilmarc’s are anticipated to be issued promptly.
