The Bureau of Internal Revenue (BIR) filed a criminal complaint today with the Department of Justice (DOJ) against Lobelle Commodities Corporation and its corporate officers for the alleged misuse of value-added tax (VAT) exemption privileges on palm olein oil importations, resulting in over ₱262 million in unpaid taxes.
The complaint concerns importations made in 2020, during which the company allegedly claimed VAT exemption without meeting the conditions specified under the Tax Code. Under existing law, palm olein oil imports qualify for VAT exemption only when used in the production of finished animal feeds and certified by the Food and Drug Administration (FDA) as unfit for human consumption.
Investigations revealed that Lobelle Commodities Corporation is not engaged in manufacturing and that the imported palm olein oil was subsequently sold to entities not involved in feed production. The FDA also confirmed it received no certification requests from the company regarding the imports in question.
“The repeated non-payment of taxes despite the absence of legal grounds for exemption demonstrates a willful intent to evade taxes,” said BIR Commissioner Charlito Martin R. Mendoza. “Tax exemptions are granted for specific purposes under the law and cannot be claimed loosely or without fulfilling the required conditions.”
In a separate action, the BIR also filed criminal complaints against Mr. Junn Ryan Tolentino Pucan, owner of JRT Pican Meat Stall, and Mr. Romy Cruzada Claveria, owner of Yarikata Construction, for failing to pay more than ₱8 million in taxes despite repeated notices and demand letters.
The BIR emphasized its ongoing commitment to enforce tax laws and hold accountable individuals and entities who attempt to evade lawful tax obligations.
