Publications


Tax Digest
Volume 9,
Series 54
Nace Detained for Autorizing Incomplete FS

Susan Mandia Nace is penalized last April 14 for violating Sec. 257 of the amended 1997 National Internal Revenue Code (NIRC). Hon. Eduardo Cruz Solangon Jr., of the Metropolitan Trial Court of Mandaluyong City adjudged Nace to be detained and to pay a fine of P100,000.

Section 257 of the 1997 NIRC is against “any financial officer or independent Certified Public Accountant who certifies the financial statement of a business containing essential misstatement of facts or omission in respect of the transactions, taxable income, deduction and exemption of the client.”

According to the Bureau of Internal Revenue (BIR), in spite of the fact that Nace had a prior knowledge of the PNP income payments, she still issued “an unqualified opinion in her certification of the 2007 and 2008 financial statements”.

These financial statements bespeaks of Enviroaire’s gross sales which is tantamount to P27.59M for 2007 and P12.61M for 2008. The income payments of P85.18M and P140.53M from PNP for 2007 and 2008 respectively, were still not included in the above gross sales amount.

With that offense, Nace would be sentenced to an imprisonment of four years minimum and 6 years maximum.

Source: CPA convicted for certifying financial statements with under declared income (by Tanya Mae Umali) BusinessWorld, April 24

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