One of the Philippines’ leading multi-level marketing club has been accused of evading taxes.
The Bureau of Internal Revenue (BIR) filed a complaint against Royale Business Club for “willful attempt to evade or defeat tax, and deliberate failure to supply correct information in its annual income returns and quarterly value added tax in 2011, 2012 and 2013.
Charged in the case were Royale’s president Julius Allan G. Nolasco, vice president for finance and treasurer Isa Angela C. Bautista and assistant treasurer Jeanette R. Maghirang, assistant treasurer Imelda P. Pedron and assistant accounting manager Marjorie G. Molina.
The BIR requested the bank records for Royale, which states the payments sent to them. BPI, Metrobank, and Banco de Oro certified that they paid Royale P141.60, P468.55 million and P171.07 million respectively.
In total, for the years 2011, 2012 and 2013, Royale received income payments from the said banks amounting to P190.79 million, P236.38 million and P354.06 million respectively.
The BIR however discovered that Royale declared in its ITR gross sales of only P39.14, P106.9 and P196.68 for the years for the years 2011, 2012 and 2013. This means that the company underdeclared their tax by 387 percent, 122 percent in 2012 and 80 percent in 2013.
The BIR sued Royale for aggregate tax liability amounting to P359.75 million, which is inclusive of surcharges and interests, broken into.
Royale is a multi-level marketing company focusing primary on health and wellness products.
The Philippines Daily is open for the side of Royale Business Club.
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