Revenue bureau files tax evasion case against pawnshop owner

The Aquino administration has filed its first tax evasion case against a pawnshop owner.

In a briefing, Bureau of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares said the agency is suing William Villarica for paying only an income tax of P25,607 from 1998 to 2009, even though he can afford to buy and maintain sports luxury vehicles.

Acting on a tip from a “concerned citizen”, the BIR verified Villarica’s tax records and found that the accused, also failed to file income tax returns from 2002 to 2009.

Villarica told the revenue agency that he stopped filing his income tax returns because his pawnshops have folded up.

But during the 7-year period, the accused bought a Lamborghini worth P26 million and this was verified by the BIR through a certified true copy of the Deed of Sale dated April 24, 2007 from the Land Transportation Office.

Based on the initial computation made by the agency, Villarica’s tax deficiency for the Lamborghini purchase alone could reach P16.2 million while his indebtedness for the value added tax on the luxury car could amount to P6.3 million, with an additional 50 percent surcharge.

Jacinto-Henares said that there is a presumption that the Lamborghini’s value is the total earnings of Villarica, which would be the basis of the tax evasion case.

“We would first prioritize the criminal case before initiating a civil case that would allow the government to recover the extent of Villarica’s tax deficiency to the government,” she said.

“We find it to be not just criminal, but perhaps immoral, for a person that earns profits out of people in need of financial assistance, yet fails to do his one duty to the country and pay his proper taxes,” the BIR chief said.

Last week, the Department of Finance announced that it would alternately file tax evasion cases through the BIR and Bureau of Customs under the Run After Tax Evaders and Run After Smugglers programs, respectively.

Finance Secretary Cesar Purisima warned bankers that they could also be charged as accomplices in tax evasion cases if they would continue to validate the loan applications of tax payers who present their “second” or “third book” as basis of their income instead of their financial statements.

He said banks would likewise be criminally liable if they would also allow heirs of a deceased to withdraw from deposits without paying the correct estate taxes.

According to Justice Secretary Laila de Lima, the government is reviewing 16 high-profile tax evasion complaints pending before the department and local courts.

De Lima said the list comprises celebrities. –Katrina Mennen A. Valdez, Manila Times