Royale Business Club, How Will You Defend? Case Scenario

The BIR website boastfully reported that popular Quezon City multi-level marketing club, ROYALE BUSINESS CLUB INTERNATIONAL, INC. (ROYALE), together with its responsible corporate officers – President JULIUS ALLAN G. NOLASCO and Vice President for Finance/Treasurer ISA ANGELA C. BAUTISTA – and its responsible employees – Asst. Treasurer JEANETTE R. MAGHIRANG, Asst. Treasurer IMELDA P. PEDRON and Asst. Accounting Manager MARJORIE G. MOLINA, was charged with tax evasion with a civil liability of P 359.75 Million after the BIR discovered that it has received a combined income payment from the Bank of the Philippine Islands, Metrobank, and Banco de Oro amounting to P 190.79 Million in 2011, P 236.38 Million in 2012 and P 354.06 Million in 2013, but only declared in its ITR gross sales amounting to P 39.14 Million in 2011, P 106.69 Million in 2012 and P 196.68 Million in 2013, thus substantially under-declaring its correct taxable sales by 387% or P 151.64 Million in 2011, by 122% or P 129.69 Million in 2012 and by 80% or P 157.38 Million in 2013.

If www.emelinotmaestro.com would handle this case, he would check if the due process requirements were strictly observed by the revenue officers assigned to investigate the case. Secondly, he would double check if the accounting method used by Royale and the said banks are congruent to one another. Finally, he would make sure that the amount received by Royale was not attributable to the so-called 'fiduciary account'.