The Department of Justice (DOJ) has found probable cause to file tax-evasion charges against national artist and film director Carlo Caparas for incurring deficiency taxes amounting to almost P102 million.
The Bureau of Internal Revenue earlier investigated the film director following media reports he produced two television shows funded by the Philippine Charity Sweepstake's Office through a P1.3 billion contract.
As producer of the shows – NBN Channel 4's "Ang Pangarap Kong Jackpot" and IBC Channel 13's "Kroko" – Caparas reportedly earned P850.95 million from 2006 to 2009.
The BIR filed 12 counts of failure to file Quarterly Income Tax Returns, four counts of failure to file Annual Income Tax Returns (ITRs), and 48 counts of failure to file Value-Added Tax (VAT) Returns for taxable years 2006 to 2009.
In his defense, Caparas claimed the amount cited by the BIR in its complaints was already the "net of taxes," or the money he received after tax had been deducted already. Based on his knowledge, Caparas said the PCSO should have already withheld the taxes and should have remitted it to the BIR already.
Caparas also presented documents to prove he had filed his ITRs for the years in question.
In her resolution, Senior Assistant State Prosecutor Rosanne Elepano-Balauag said that while Caparas submitted his ITRs, he did not present documentary evidence to prove he filed VAT returns.
"Recognizing his obligation as a taxpayer, respondent filed his annual ITRs for taxable years 2006 to 2009 despite knowing that the payments he received from PCSO were 'net of all taxes,'" Balauag said.
"Consistent with this premise, respondent should have likewise filed his VAT returns for the same period because he is a seller of services. Regrettably though, none was made," she added.
She said there was probable cause to charge him for violation of the National Internal Revenue Code, particularly for failure to file VAT returns, with an equivalent of tax duties worth P101,819,722.19.
However, the other charges against Caparas – particularly involving his ITRs – were all dismissed.
Balauag stressed that both the BIR and Caparas could respectively file a Petition for Review, "should either or both feel inclined to question the findings of the DOJ Task Force." — LBG
