LTO asks BIR for tax fraud probe of motorcycle distributor
CEBU CITY—The Land Transportation Office (LTO) in Central Visayas has asked the Bureau of Internal Revenue (BIR) to conduct a “tax fraud investigation” against one of the biggest motorcycle distributors in the Visayas and Mindanao.
Named respondents in the complaint were corporations owned by the Du family—Du Ek Sam Inc., Des Marketing Inc., Des Strong Motors Inc., Desmark Corp. and Premio.
In a letter addressed to BIR Commissioner Caesar Dulay in Manila, LTO regional director Victor Emmanuel Caindec said the respondents issued double invoices containing different invoice numbers, dates, places of sale and purchase costs of motorcycles.
Caindec said he found the alleged irregularities through the registration of motorcycles at the regional LTO office. He said his estimate of the fraud’s cost to the government was “billions” of pesos.
He also furnished a copy of the letter, dated Sept. 10, to Finance Secretary Carlos Dominguez. The letter was written by Caindec on behalf of the LTO Central Visayas office.
Caindec said that amid the health crisis and at a time when the government was in serious need of more funds for the pandemic, an investigation of these schemes should be made.
The Du family is based in Northern Mindanao but its motorcycle distribution network has a reach around the Visayas region.