Chinese businessmen accused of Filipino tax dodge

MANILA — Philippine taxmen said Friday they want four Chinese construction company officials jailed and fined for scheming to avoid paying nearly 16 million dollars in taxes.The justice department is evaluating a criminal complaint lodged against the chairman, president and two Chinese officers of China State (Philippines) Construction Engineering Corp., along with two Filipino officers, they said.The government will also seek an order to prevent them from leaving the country, said Estela Sales, deputy commissioner for the Bureau of Internal Revenue."They can get about 10 years in jail. This isn't just about paying back taxes," Sales told AFP.The complaint is part of an intensified Philippine campaign against tax evaders and smugglers in a country where both practices are widespread.China State (Philippines) is accused of using tax credits earned by an affiliated firm, China State Construction, to evade paying 712.7 million pesos (15.7 million dollars) in taxes, Sales said.The six company officials could be jailed for 10 years each and company assets could be seized by the state to pay for the back taxes if they are convicted.The company is partly owned by Chinese firm China State Construction Engineering Corp. Ltd but internal revenue officers said the two companies have the same address and employees and also have many common officers.The internal revenue bureau is also looking into a possible complaint against China State Construction, Sales said.China State Construction Engineering was among several companies operating in the Philippines that were blacklisted by the World Bank from 2009 due to alleged corruption.However the internal revenue bureau said the tax evasion complaint was not related to the blacklist. Copyright © 2010 AFP. All rights reserved. More »

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