Gov’t wants Prietos to pay P1B for Dunkin’ taxes
This donut chain is allegedly leaving big holes in its sales reports.
The Bureau of Internal Revenue (BIR) filed tax evasion charges against the Dunkin’ Donuts brand owned by the Prieto clan.
In a statement, the BIR said they are running after unpaid taxes worth P1.118 billion from the company, which is registered as Golden Donuts Inc. (GDI) under the Securities and Exchange Commission.
The charges were filed with the Department of Justice against company president Walter Spakowski, Treasurer Miguel Prieto, chief financial officer Pedro Paraiso, and vice- president for finance and administration Jocelyn Santos.
GDI owns the Dunkin’ Donuts franchise in the Philippines.
The complaint stems from the company’s “deliberate failure” to report accurate sales information in its income tax returns and quarterly value added tax returns.
In particular, the BIR said they are after P840.8 million in income tax deficiencies, P270.4 million unpaid value-added tax, and P7.1 million in expanded withholding tax.
“In the investigation of the case of GDI, sales invoices issued by various suppliers were intentionally altered, in a desperate attempt to conform to substantiation requirements. To aggravate GDI’s non-compliance, some invoices did not contain the TIN of GDI,” the BIR said in a statement.
“Investigation likewise revealed that GDI substantially under-declared its sales by 39%. The under-declaration of sales was noted by comparing the donut sales declared by GDI vis-à-vis sales derived from the grossed-up value of franchise fee paid to Dunkin Donuts of America, Inc.”
The Prietos have been in hot water under the Duterte administration, with the President often hitting the Philippine Daily Inquirer. A court decision also forced the Prieto-owned Sunvar Properties in Makati out of the prime lot which has been ruled to be owned by the government.