BIR Files Charges vs PDIC Exec on G7 Bank Foreclosure

LEGAZPI CITY, Oct. 27 - The Bureau of Internal Revenue (BIR) in Bikol is running after an executive of the Philippine Deposit Insurance Corporation (PDIC) for the latter's refusal to submit to the agency the book of accounts and other records of a foreclosed bank in Bikol.

Lawyer Diosdado Mendoza, BIR Bicol regional director, said it has filed a criminal case against Leon Cabrabilla, PDIC chief liquidator of the foreclosed G7 Bank operating in the provinces of Camarines Sur and Albay.

Mendoza said Cabrabilla, after several summons by the BIR, has failed to present for examination the books of accounts and other accounting records of the foreclosed bank.

BIR has filed criminal charges against the PDIC's official for its failure to obey summons, under Section 5 in relation to Section 266 of the National Internal Revenue Code of 1997, as amended.

Mendoza said the tax bureau has filed the charges last week at the Iriga City Prosecutor's Office following the failure of the PDIC chief liquidator to comply with BIR's Subpoena Duces Tecum (SDT), received by the PDIC last December 8, 2009, and despite several follow ups and appeal from the bureau for an audit investigation of the 2007 and 2008 to determine the tax liabilities of the foreclosed G7 Bank.

G7 Bank (also Rural Bank of Nabua, Inc.) was closed for business by PDIC in 2008 due to problems in cash outflow, despite being the biggest rural bank in Bikol with seven branches spread throughout the region and two other branches in Metro Manila.

The bank was placed first under receivership by the PDIC which took charge of all its assets, records and affairs, subsequently, went through a liquidation process under the supervision of the PDIC to dispose all of its assets and properties.

Mendoza furthered the filing of charges is in line with the directive of BIR Commissioner Kim Henares not only to run after tax evaders but also to file charges against persons obstructing the tax bureau's effort to collect the right taxes.

Meanwhile, the tax bureau chief said that BIR Bikol's seven revenue district offices collected a total of P3.6 billion from January to September 29.29 percent over the same period last year. The tax bureau in Bikol has set a tax collection goal of P4.7 billion for 2010.

Mendoza added that BIR Bicol has continually surpassed its tax collection target for the past three consecutive years. (PNA)