BIR Files P1.12 Billion Tax Evasion Case Against Prieto-Owned Golden Donuts Inc. (GDI) at DOJ

The Prieto-Owned Golden Donuts Inc. (GDI), the exclusive Philippine franchisee of the world-renowned Donkin' Donuts brand was charged by the Bureau of Internal Revenue (BIR) with a controversial P1.12-billion tax evasion case.


Aside from GDI, who was charged by the BIR, the firm's officers Miguel Prieto, Walter Spakowski, Pedro Paraiso and Jocelyn Santos were also charged by the BIR and the case is now filed at the Department of Justice (DOJ).



In the BIR's complaint filed before the DOJ on Friday, February 23, 2018, the BIR placed the total tax liability of GDI to P1,118,331,640.79, inclusive of surcharges and interests, covering taxable year 2007.

Based on the complaint filed by BIR they stated that the "sales invoices issued by various suppliers were intentionally altered, in a desperate attempt to conform to substantiation requirements."

Pres. Rody Duterte slammed “Prieto-owned Dunkin’ Donuts” last year for evading payment of correct taxes. The BIR also noted that the case against Golden Donuts is the 131st filed by the BIR under its Run After Tax Evaders (RATE) program under the Duterte administration.



Golden Donuts for their part categorically denied the accusations and said that they are "prepared to answer the tax evasion case in the proper forum."

"While GDI has yet to receive a copy of the complaint filed on Friday, it appears from the news reports that the complaint was filed based on an alleged 39% underdeclaration of sales which arose from the attribution of sales of franchises to GDI. All GDI franchisees are business entities separate from GDI that are responsible for paying their own taxes," the company said.


Source: PNA

BIR Files P1.12 Billion Tax Evasion Case Against Prieto-Owned Golden Donuts Inc. (GDI) at DOJ BIR Files P1.12 Billion Tax Evasion Case Against Prieto-Owned Golden Donuts Inc. (GDI) at DOJ Reviewed by Phil Newsome on February 23, 2018 Rating: 5
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