DOJ sues construction, trading firms for ghost transactions

DEPARTMENT of Justice Secretary Jesus Crispin Remulla personally led the filing of criminal charges against two companies and two “ghost companies” for engaging in fraudulent transactions involving the issuance of bogus official receipts to evade the payment in millions of taxes to the government.

In a statement, the DOJ said charged before the Court of Tax Appeal (CTA) last April 10, are the

E.D. Buenviaje Builders, Inc. (E.D.Buenviaje) and Synergy Sales International Corporation (SSIC).

An investigation by the Bureau of Internal Revenue (BIR) disclosed both firms transacted with “ghost companies” ‘Buildforce Trading, Inc.’ and ‘Decarich Supertrade, Inc.,’ which had “no legitimate business activities, merely created to issue fraudulent official receipts.”

“These receipts were used to substantiate fictitious claims and expense deductions to unlawfully reduce tax liabilities,” the DOJ said.

Eventually, the DOJ determined that there exists prima facie evidence with reasonable certainty of conviction to charge the corporations and their responsible officers, namely: Ernesto S.D. Buenviaje and Ruselle Anne A. Buenviaje of E.D. Buenviaje, and Arthur See and Betty Lim See of SSIC.

Specifically, the respondents are charged before the CTA for violations of Sections 254 (Attempt to Evade or Defeat Tax) and 255 (Failure to Supply Correct and Accurate Information) of the NIRC.

The total civil liability arising from these offenses amount to approximately P73.33 million, exclusive of legal increments.

The DOJ noted it had previously charged Buildforce Trading and Decarich in 2022, for operating as ghost receipt syndicates.

Secretary Remulla also commended the efforts of BIR Commissioner Romeo D. Lumagui, Jr., saying,

“The partnership between the DOJ and BIR has once again brought our criminal justice system to greater heights, a testament to the Bagong Pilipinas governance and leadership of the administration in upholding the rule of law.”