BIR mulls 1st tax evasion case under Aquino admin

Friday, 16 July 2010 17:30 Merck Maguddayao

The Bureau of Internal Revenue (BIR) under the Aquino administration will file its first tax evasion case, which will be against the owner of pawnshop firm Villarica.

According to the BIR, pawnshop owner William Villarica failed to file his income tax return for more than a decade. Worse, the BIR found out that despite a zero tax return in 2007, Villarica allegedly purchased a Lamborghini Gallardo sports car worth P26 million.

"If he has accumulated P30 million in assets, he must be making at least a million or two every year,” BIR Commissioner Kim Henares said about Villarica. According to her, Villarica will be charged for violating Sections 254 and 255 of the National Internal Revenue Code of 1997.

Henares said that despite allegedly owning “several” sports cars, Villarica only paid a total of P25,607.25 in taxes from 1998 to 2009.

"It (the case) could have been filed earlier. There are really a lot of people being investigated for tax deficiencies, but the BIR has not historically used its enforcement powers to file criminal cases...until 2005, when we made this a program. Then it has had a roller coaster ride. In 2005, it was emphasized then it slipped down a bit, right now we are emphasizing it again," Henares said.

“We find it to be not just criminal but perhaps also 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,” she added.

According to Henares, the BIR under the Gloria Macapagal-Arroyo administration had an anti-tax evasion program called “Run After Tax Evaders” (RATE). She commented that the said program did not fare well.

The Department of Justice meanwhile will conduct a preliminary investigation on the case.

"This will be the beginning of a series of successive filing of cases of anti-smuggling and anti-tax evasion. As you know, one of the priorities is to intensify anti-smuggling and anti-tax evasion, and one best way is to intensify and maximize the filing of cases," Justice Secretary Leila De Lima said. She added that Henares has submitted to her an initial list of 16 pending tax evasion cases that had been pending with the DOJ in previous administrations.

Finance Secretary Cesar Purisima said that the Aquino administration will run after tax evaders and smugglers to recover the USD5 billion (P231.5 billion) annual tax revenue losses from the previous administration.

DZMM reported that Villarica is the husband of Bulacan Representative Linabelle Ruth Villarica, who is a party-mate of President Benigno Aquino III in the Liberal Party.

Image taken from Wikipedia.

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