By Manny Mogato
MANILA, Aug 12 - The Philippines filed a tax evasion case on Thursday against a subsidiary of a Chinese company, part of its pledge to cut a widening budget deficit by cracking down on graft and enforcing tax laws.
The government, in power for six weeks, has filed one case a week against tax evaders and smugglers for the past month.
The government is seeking back taxes of 713 million pesos for 2003 to 2006 from the local subsidiary of China State Construction Engineering Corp, saying the unit had claimed tax credits that were due to the parent.
"It should not be using the creditable taxes of another company," Bureau of Internal Revenue Commissioner Kim Henares said, adding cases were brought against four Chinese and two Filipino company officials.
Henares said the government had no business dealings with the local subsidiary of China State Construction Engineering Corp which she said was blacklisted last year by the World Bank for rigging road project bids in the Philippines.
The World Bank confirmed the blacklisting.
The government also filed a tax evasion case against a local company which filed tax returns electronically but never remitted payments.
The Philippines has a tax collection rate of 12.8 percent of its gross domestic product , lower than the regional average of 16 percent, finance officials have said.
Henares has said the government plans to improve its collection rate to 15 percent of GDP next year and cut the budget deficit to 2 percent of GDP in three years.
