Ex- Bureau of Internal Revenue (BIR) Chief Kim Henares was indicted by former BIR revenue officer, Othello Dalanon to have “fooled the Filipino people” and tried to “conceal the truth” about the Dunkin’ Donuts tax evasion case. He accused Heneras of “intentionally failing to collect and file appropriate charges” against Dunkin Donuts for Php 1.56 billion in unpaid taxes.
Dalanon stated in his blog that Henares “fooled the Filipino people when she said that his tax assessment against DD showed inaccuracies.” On February 28, 2014, Henares said in an interview with GMA-7 that “Dalanon’s tax assessment against the company was erroneous and the case had to be reinvestigated twice” He added that she even opposed her statement when she claimed that she did not order “two re-investigations” of DD tax case on the later.
Dalanon also said that on March 17, 2014, he filed a formal complaint against Kim Henares and Estela Sales before the Office of the Ombudsman. He added that he clearly stated his audit findings that “DD’s duly-registered books of accounts (hardbound computer-generated) reflected a NET INCOME amounting to PhP 135.2 Million while its Annual Income Tax Return (AITR) showed a NET LOSS amounting to PhP 44.9 Million.”
He also said that “DD’s sales as reflected in the said books was PhP 1.928 Billion while the total amount of sales reflected in its AITR was only PhP 1.031 Billion. Dalanon in his blog said that “This shows a huge discrepancy (substantial under-declaration) amounting to PhP 897 Million.”
Dalanon added that Henares and Sales claimed that these findings were flawed but failed to give any justifications or explanations in their counter-affidavits and in supporting affidavits of Atty. Rommel Curiba and Mr. Wilfredo Reyes, both of BIR national office.
“Clearly, it did not conduct a thorough investigation as it did not even require respondents to submit DD’s tax case docket and copy of its actual “protest” which are very essential in the investigation,” Dalanon said. He also said that he was amazed that despite respondents’ failure to give answers to the above vital accounts, the Ombudsman still terminated the case.
Dalanon also said that “Henares FOOLED the Filipino people when she claimed that the function to determine finality of an assessment is vested by law upon the Commissioner of Internal Revenue or her duly authorized representatives.”
He also said that he was firm that the PhP 1.56 Billion tax assessment against DD attained finality and that DD failed to file a valid protest and submit the required documents within the period required by law. “Atty. Claro Ortiz knows so well that the PhP 1.56 Billion tax assessment against DD attained finality,” he added.
Meanwhile, Dalanon also added that “Henares, in her counter-affidavit, states that Mr. Dalanon, as then Revenue Officer, has no authority – and could not arrogate upon himself – to decide and declare that a certain assessment is already final, executory, and demandable.” Henares added that “this is a function vested by law upon the commissioner of internal revenue or her duly authorized representatives.”
Dalanon alleged that “Henares’s statement has no basis in law and her claim is erroneous, because it is the law that determines finality of an assessment as clearly provided under Revenue Regulations (RR) No. 12-99 in relation to Section 228 of the 1997 NIRC, as amended.”
Dalanon also accused that Henares fooled the Filipino people when she denied knowledge of DD’s irregularities.
Dalanon claims he personally reported DD’s omissions to Henares and recommended to her the criminal prosecution of DD for tax evasion under the much-vaunted Run After Tax Evaders (RATE) program of the Bureau.
He pinpoints Atty. Jethro M. Sabariaga who was then Henares’s Chief of Staff, knew so well that he personally talked to Henares about the case. Moreover, Dalanon said that Atty. Sabariaga first read his audit report before it was given to Henares. “I even send the same copies of my reports on DD tax case to Henares’ official e-mail address,” he added.
Dalanon also added that Henares lied to the people because there were no reports and evidence that Henares ordered the two reinvestigations on DD tax case that existed.