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Othello Dalanon


Atty. Kim S. Jacinto-Henares, CPA, LLM
Former Bureau of Internal Revenue Commissioner

You said that my tax assessment against Dunkin’ Donuts amounting to PhP1.56 billion showed inaccuracies, that is why you had the company’s tax case re-investigated for several times (twice).

If my tax assessment against DD was inaccurate, why were you and Estela Sales, and your witnesses Atty. Romel Curiba and Wilfredo Reyes, not able to give any justifications or explanations to dispute all glaring and crucial issues raised in my formal complaint against you before the Ombudsman?

Why did a stockholder-officer of DD have to cry during an informal meeting at the commissioner’s office, when she learned that I was firm in my stance to make DD pay the tax assessment if they can dispute it?

Why did another stockholder-officer of DD have to intensely beg for compassion if they can refute my tax assessment?

I dared them to elevate the case to the Court of Tax Appeals where they can give disputations and present documentary evidence to substantiate their position, but why they didn’t want, if they can invalidate my tax assessment?

Is it because that my tax assessment was solid as the ROCK OF GIBRALTAR that DD representatives, and even you and your pool of CPA-lawyers in the BIR, can never disprove?

Just to remind you again. My audit findings that culminated in the PhP1.56 billion tax deficiency assessment against DD include a huge under-declaration of sales.

That DD’s sales as reflected in its registered books of accounts was PhP1.928 billion while the total amount of sales reflected in its Annual Income Tax Return (AITR) was only PhP1.031 billion, or a huge discrepancy amounting to PhP897 million.

According to the SUPREME COURT in the case of Paper Industries Corporation of the Philippines vs. Court of Appeals et al., 250 SCRA 434 – the books of accounts prevail over tax return when they reflect higher sales or receipts, because they are kept and prepared under control and supervision of the taxpayer; and they embody what must appear to be admission against interest.

If this finding is inaccurate, why weren’t you able to give any reason to controvert it?

Why did you publicly threaten me with criminal action for my call for accountability, instead of upholding my tax assessment being the commissioner of internal revenue and let DD contest it in the Court of Tax Appeals?

I expressed my firm stance that DD’s tax deficit attained finality because DD failed to file a valid protest and failed to submit the required documents in support of its invalid protest within the period required by law.

But in your counter-affidavit you stated” Mr. Dalanon, as then Revenue Officer, has no authority - and could not arrogate upon himself – to decide and declare that a certain assessment is already final, executory and demandable. THIS IS A FUNCTION VESTED BY LAW UPON THE COMMISSIONER OF INTERNAL REVENUE OR HER DULY AUTHORIZED REPRESENTATIVES.”

Are you not unreasonable, Atty. Kim Henares?

I am not a lawyer, but I firmly believe that your statement does not find basis in law. Your claim is erroneous, because it is the law that determines finality of an assessment as clearly provided under Revenue Regulations (RR) No. 12-99 in relation to Section 228 of the 1997 National Internal Revenue Code, as amended.

Atty. Henares, I have been posting the DD issue, for many years and limitless times, on social media and even shared it with you via your official email account, and also with the Department of Finance and BIR contact center thru emails; but you have not shared any arguments or disputations to contradict my postings if you’re certain that my tax assessment against DD was incorrect.

And now that President Duterte has taken notice of the issue, and despite his extreme bangs against you for allowing DD to pay only a “donut hole” – a ridiculous amount, you remained mum.

“PUTANG INA… HENARES inayos ang utang na taxes ng DONUT ni Prieto ng Inquirer. Itong Donut, ang may ari si Prieto ng Inquirer, may utang na P1.5 bilyon, walang bayad bayad yan. Eh may Inquirer sigen pan-atake takot naman. Pagdating kay Henares in-assess lang n’ya ng PhP8.5 milyon. Sinabi ko, di ko tatanggapin yan, BINUANG yan, KALOKOHAN yan, bayad kayo sa husto.” President RODRIGO ROA DUTERTE said.

Di ka pa ba tinalaban nyan, Atty. Kim Henares? Ok lang na di mo ako intindihin, pero dapat sagutin mo si Presidente at magpaliwanag ka sa taumbayan kasi sa kanila ka may pananagutan dahil yong PhP1.56 bilyong tax deficit ng DD ay legal ng pag-aari nila.

I hope that you would be able to clear your name.

Othello Dalanon

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Written by Charlie V. Manalo
18 April 2017

“Finally, President Rodrigo Duterte has taken notice of former Bureau of Internal Revenue Officer Othello Dalanon case against the Dunkin Donuts which he claimed, has cheated the government of more than a billion pesos in taxes in collusion with former BIR Commissioner Kim Henares.

“The other day, Duterte, taking a dig at the Philippine Daily Inquirer, declared he will order a probe on the PDI’s owner’s history of tax cheating against the government starting with the alleged anomalous Mile Long property contract, and of course, the Dunkin Donuts.

“In a speech before OFWs in Qatar, Duterte vowed to look into the details of the lease agreement between the government and Sunvar Realty Development Corp., the property arm of the Prietos, owner of the PDI, and Rufinos, over a 2.9 hectare Mile Long property in Makati.

“According to records, the National Power Corp. owns the said property which it leased it to the Technology Resource Center Foundation Inc. (TRCFI) for 25 years from January 1, 1978 up to December 31, 2002.

“Shortly after the 1986 Edsa People Power Revolt, TRCFI, whose rights to the property were taken over by the Philippine Development Alternatives Foundation (PDAF), entered into a sublease agreement with Sunvar that put up commercial facilities on it.

“Napocor advised PDAF and Sunvar in 2002 that it would not renew the lease upon the expiry of the contract and asked Sunvar to vacate the property since the government plans to sell the prime lot to raise government revenues, but which Sunvar ignored.

“A case was filed by then Solicitor General Agnes Devanadera in 2009 with the Makati City court to compel Sunvar to vacate the property and in 2015, the court ruled in favor of the government. The court ordered Sunvar to vacate the property and pay the government P478.2 million in back rentals and a P3.2 million monthly rental to the government until it leaves the property.

“However, Sunvar later on obtained an injunction order from the Regional Trial Court in Makati to stop the Metropolitan Court from executing its decision.

“With regard to the Dunkin Donuts issue, Dalanon filed a case against Henares and former BIR Deputy Commissioner Estela Sales before the Ombudsman over their alleged intentional failure to either collect the P1.56-B tax deficit of Philippine Daily Inquirer chair Marixi Prieto firm “Dunkin’ Donuts” or pursue tax evasion case against the company for allegedly deliberately cheating to pay the correct taxes; but the Ombudsman dismissed the case despite respondents’ failure to give rejoinders to dispute all glaring and crucial issues raised in my complaint.

“However, Dalanon claimed the Ombudsman, while not requiring the respondents to submit Dunkin Donut’s tax case docket and copy of its actual “protest” stressed that these are necessary in the investigation and dismissed the case.

“But now, with Duterte himself stepping into the picture, Dalanon’s cases could finally see its day in court.

“However, Dalanon’s war against Henares is not only about the Dunkin Donuts and its owners. It’s a representation of the people’s war against the oligarchs which enjoyed protection under the previous administration.

“It’s also about the CATS Motors and the Lopezes, whose closeness with the Yellow regime made them so privileged and enjoying perks extended to them in exchange for their support.

“Look at how the Yellow administration, through Henares, allegedly helped CATS Motors, exclusive distributor of Mercedes Benz, Mazda, Chrysler and Hyundai in the Philippines, the third biggest distributor of luxury cars in the country, besting all other luxury car dealers in the country, in alle[g]edly evading taxes, according to the President.

“I wrote an article three years ago based on a story posted in the Web site,, claiming that CATS Motors had been found guilty by members of the National Investigation Division of the Bureau of Internal Revenue, of misdeclaration in the prices of their vehicles in their tax filings and these prices are extremely smaller than their actual selling prices, enabling the company to pay lower taxes because they state smaller income, an example of which is the Mercedez Benz CLS 63 which CATS Morots declared a lower selling price of P4,900,000 while their actual selling price was P19,800,000, or a difference 75 percent or P14,900,000 of undeclared income.

“However, Henares was said to have ignored the report on the alleged illicit act of CATS Motors which had been pending on her table since January 30 of last year.

“And why was Henares allegedly willing to cover-up for CATS Motors? According to sources, CATS Motors president, Felix Ang allegedly contributed heavily to Kim’s boss, Noynoy Aquino for his campaign kitty in 2010.

“CATS’s contribution to Noynoy’s campaign, the sources said, did not go unnoticed. Noynoy is said to have allegedly rewarded it by appointing CATS chairman of the board, the biggest company’s biggest stockholder, Greg Yu, a director’s seat in the Government Service Insurance System.

“And the source added that Yu is a close friend of former Finance Secretary Cesar Purisima, Henares’s immediate superior. Sources say Puris[i]ma’s friendship with Yu dates back to pre-Noynoy presidency, having been even invited as guest of honor in the inauguration of CATS Motors office years ago.

“With regard to the Lopezes who own the ABS-CBN, another media entity, Duterte claimed is critically unfair to him, it has been alleged that they were paid by the government as a compensation for Meralco when the late President Ferdinand Marcos ordered it seized in favor of the government when he declared Martial Law then.

“If I remember it right, it was former Sen. Juan Ponce Enrile who made such startling revelation.

“And as some sort of reward for their support in installing her to power in 1986 the late Cory Aquino handed Meralco back to the Lopezes complete with all the improvements and the expansions the government paid for, entirely for free.

“That’s how the Yellows reward their allies. Contrary to its claim it is pro-poor, it maintains it own group of oligarchs who enjoys immense protection.

“But with Duterte now declaring a war on the Yellow-sponsored oligarchs, it is prayed he doesn’t stop with Dunkin’ Donuts or Sunvar. He should also go after the rest of them including the Lopezes and the CATS Motors.

“Otherwise, Othello’s war would be for naught.”

Details of Othello’s tax assessment against Dunkin’ Donuts may be viewed at
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‘US, EU meddle in other countries & kill people under guise of human rights concerns’ – Duterte RT — Interview
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President Duterte: The Inquirer owns a Dunkin’ Donuts – they owe 1.5 billion from many years ago. And they haven’t paid. And during the time of Aquino, the Bureau of Internal Revenue assessed them as just 8 million 400 thousand.
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17 May 2017

Exclusive Franchisee of Dunkin’ Donuts of America
Tax Identification № 000-122-565-000
GDI Building
Reliance corner Sheridan streets
Mandaluyong City 1550 Philippines

To whom it may concern:

We the People demand that you pay to the REPUBLIC OF THE PHILIPPINES all the taxes due under the 2007 Tax Deficiency Assessment of Golden Donuts, Inc. per Final Assessment Notice Demand No. 41-B072-07 amounting to at least One Billion Five Hundred Sixty-Four Million Four Hundred Twenty-Six Thousand Eight Hundred Eight Pesos and Eight Centavos or PhP 1,564,426,808.08 as of 29 October 2010 plus the legal interest plus penalties plus whatever other amounts are lawfully chargeable from that date to the present date. We appreciate receiving a report of your tax payment to the REPUBLIC OF THE PHILIPPINES sometime on or before commemoration of Philippine Independence Day on 12 June 2017 to coincide with and symbolize the masa Pilipinas quest for independence from oligarchs.

“Itong DONUT, ang may ari si PRIETO ng INQUIRER. May utang na P1.56 BILYON, walang bayad bayad yan. Eh may INQUIRER sigen pan-atake takot naman. Pagdating kay HENARES in-assess lang n’ya ng P8.5 MILYON. Sinabi ko, di ko tatanggapin yan, BINUANG yan, KALOKOHAN yan, bayad kayo sa husto.” President Duterte said.

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Dunkin' Donuts Philippines A1 Tax Evader.
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People’s demand letter is issued for Dunkin Donuts tax evasion - NewsInfoLearn
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Philippines Dunkin' Donuts
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