Customs: Luxury Car Importer P233.821 Tax Deficiency

MANILA — The Bureau of Customs has accused the country’s leading luxury car importer, Auto Nation Group Inc. (formerly Cats Motors), of cheating the government of P233.821 million in unpaid duties and taxes on 138 Mercedes Benz in 2015.

Based on documents obtained by the Philippine Daily Inquirer, Antonio Meliton Pascual, acting collector of the Manila International Container Port, has given Felix Ang, president of Auto Nation, five days to explain the glaring discrepancy in tax payments of Mercedes Benz vehicles imported between May and July 2015.

Auto Nation brought in 138 units of Mercede Benz units – A250, B180, B200, E250, E400, CLS400, CLA200, GLA200, S400L, and S500 – in 15 shipments last year and only paid P196.529 million.

But the BOC Enforcement Group, led by Arnel Alcaraz, reviewed the Auto Nation shipments and found that the Mercedes Benz units should been assessed with P431.133 million in duties and taxes.


In his letter to Ang, Pascual said: “We would like to invite you within five days from receipt hereof to visit our office and show cause why we should not impose the alleged additional duties, taxes and other charges on the aforementioned import entries.”

“Please be informed that failure on your part to controvert the findings of the Enforcement Group within the prescribed period will result in the issuance of a demand letter for payment of your deficient duties and taxes including penalty,” said Pascual.

The letter was dated October 12, 2016 but was received on October 17.
The Inquirer tried to get the side of Ang but he did not respond. Auto Nation sold 850 units in 2015, up by 850 units in 2014.


Auto Nation is a partnership between Ang, former Government Service Insurance System Trustee Gregorio Yu, a close associate of former Finance Secretary Cesar Purisima, and Hapee Toothpaste owner Cecilio Pedro.

The other original shareholders of Auto Nation are Mary Grace Ang, Francis Jonathan Ang, David O. Chua, Rafael Dizon III and lawyer Ariel Bruno Rivera as fellow directors.

Aside from the Mercedes Benz, Auto Nation also distributes Chrysler, Dodge, Jeep and Mazda.  SFM



The post Customs: Luxury Car Importer P233.821 Tax Deficiency appeared first on Inquirer

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