DoJ approves filing of tax evasion case vs pawnshop owner

MANILA, Philippines – The Department of Justice (DoJ) has approved the filing of a tax evasion case against a pawnshop chain owner.

William Villarica will be charged with violating the National Internal Revenue Code (NIRC), said Prosecutor General Claro Arellano in a nine-page resolution.

“After carefully evaluating the contentions and evidence adduced by the parties, [the DoJ] finds probable cause against respondent for tax evasion under Sections 254 and 255 of the NIRC,” the resolution said.

Section 254 of the NIRC refers to an attempt to evade or defeat income tax while Section 255 punishes failure to file value added tax return and pay value added tax.

The BIR filed a complaint against Villarica for his alleged failure to file his true income tax return from 1998 to 2009 except in 2007 where he declared only an aggregate payment of P25, 600. In 2007, Villarica filed zero ITR.

However, that same year, the BIR alleged that Villarica purchased a Lamborghini sports car worth P26million, which was verified by a certified true copy of the Deed of Sale dated April 4, 2007 provided by the Land Transportation Office (LTO).

Based on the purchase price of the Lamborghini, the BIR computed the possible income tax deficiency to P16.2 milion while the possible deficiency in Value Added Tax could amount to P6.3 million.