Napoles Realty Company Charged with Tax Evasion

The Bureau of Internal Revenue (BIR) today filed a criminal complaint with the Department of Justice (DOJ) against JCLN GLOBAL PROPERTIES DEVELOPMENT CORPORATION (JCLN CORP.), together with its President JAMES CHRISTOPHER L. NAPOLES and its Treasurer JO CHRISTINE L. NAPOLES,for Willful Attempt to Evade or Defeat Tax, and Deliberate Failure to Supply Correct and Accurate Information in its Income Tax Returns (ITR) for taxable years 2008, 2009, 2010 and 2011, in violation of Sections 254 and 255, in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997, as amended (Tax Code).

Respondent JCLN CORP. is a domestic corporation registered with the Securities and Exchange Commission (SEC) which holds office at G6 Dakota Residences 555 Gen Malvar St. cor. Adriatico St., Malate, Manila. It is engaged in the business of developing, buying, selling, and leasing of real estate properties.

The case against JCLN CORP. and its responsible corporate officers was prompted by media reports on the investigation conducted by the National Bureau of Investigation (NBI) on the alleged misuse of Priority Development Assistance Fund (PDAF) that were delivered to Non-Governmental Organizations (NGOs).

Documents gathered during investigation like electronic copies of Condominium Certificates of Title (CCT) and Transfer Certificates of Title (TCT), Deeds of Absolute Sale, Certified True Copies of TCTs and Deeds of Absolute Sale, and Certifications from sellers showed that JCLN CORP. acquired various properties located in Pasig City, Quezon City Manila, Taguig, Bulacan, and Kidapawan, Cotabato amounting to P16.5 million in 2008, P36.07 million in 2009, P44.19 million in 2010, and P43.21 million in 2011. The acquisitions included condominium units in G5 and G6 Residences, Discovery Center, The Beaufort, and Eastwood Lafayette One Libis.

However, JCLN CORP. failed to report the said acquisitions in its Comparative Audited Financial Statements (AFS) for the concerned taxable years.

The failure of JCLN CORP. to report said purchases in its AFS is a concealment of assets for taxable years 2008 to 2011 which is evidently a scheme to conceal undeclared revenues.

As a consequence, JCLN CORP. was likewise sued for an aggregate deficiency income tax liability of P101.717 million, including surcharges and interests, broken down into: 2008 – P13.788 million; 2009 – P27.974 million; 2010 – P31.626 million; and 2011 – P28.329 million.

The case against JCLN GLOBAL PROPERTIES DEVELOPMENT CORPORATION, together with its responsible corporate officers, is the 394th filed under the RATE program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. It is likewise a RATE case of the National Investigation Division.

Source: www.dof.gov.ph