28 May 2015

Iligan City logistics solution company charged with willful failure to pay tax
The Bureau of Internal Revenue (BIR) today filed two (2) criminal complaints with the
Department of Justice against ILIGAN CARGO MASTERS, INC. (ILIGAN CARGO) for Willful Failure to
Pay Taxes as defined under Section 255 in relation to Sections 253 and 256 of the National Internal
Revenue Code of 1997, as amended (Tax Code).
Charged with the subject corporation as responsible corporate officers were its Chief
Executive Officer / Vice-President SERAFIN R. FERAREN, Chief Operating Officer ARVEE DE LOS
REYES and Chief Financial Officer PABLO Y. BUOT.
ILIGAN CARGO is a domestic corporation registered with the Securities and Exchange
Commission (SEC) with registered address at #60 Block 8 Lot 19, Sta. Elena, Iligan City. It is engaged
in the business of total logistics solution which include arrastre, stevedoring, and other port related
services.
The respondent corporation and its responsible corporate officers were assessed deficiency
tax liabilities in the aggregate amount of P34.66 million, inclusive of increments, broken down as
follows: 2009 - P19.17 million (Income Tax - P9.17 million; Value Added Tax - P9.88 million; and
Expanded Withholding Tax - P0.12 million); and 2010 - P15.49 million (Income Tax - P8.52 million; Value
Added Tax - P6.66million; and Expanded Withholding Tax - P0.31 million).
BIR Cagayan de Oro City records of investigation showed that the abovementioned
respondents were served the corresponding Letters of Authority (LOA), Requests for Presentation of
Records, Subpoena Duces Tecum (SDT), Preliminary Assessment Notices (PAN), and Formal Letters
of Demand (FLD). ILIGAN CARGO filed Motions for Reconsideration / Reinvestigation but were denied
by the BIR. Due to its failure to appeal the denial of said motions, said assessments became final,
executory, and demandable.
The subsequent issuance of Preliminary and Final Collection Letters were ignored by the
respondents, as the said tax assessments remained unpaid. The respondents obstinate failure and
continued refusal to pay their long overdue deficiency tax assessments, despite repeated demands,
constitute willful failure to pay the taxes due to the government.
The two cases against ILIGAN CARGO MASTERS, INC. and its responsible corporate officers Chief Executive Officer / Vice-President SERAFIN R. FERAREN, Chief Operating Officer ARVEE DE LOS
REYES and Chief Financial Officer PABLO Y. BUOT are the 357th and 358th filed under the RATE
program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. These are likewise
RATE cases of Revenue Region No. 16, Cagayan de Oro City. (reytdlc)
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(original signed)

Please refer to: REYMARIE T. DE LA CRUZ, Chief, PIED, 9243245

(original signed)

Approved for Release: ESTELA V. SALES, Deputy Commissioner of Internal Revenue, Legal Group

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