DoJ files tax raps vs pawnshop owner

The Department of Justice has recommended the filing of criminal charges against pawnshop owner William Villarica, to whom President Aquino alluded in his first State of the Nation Address last year as someone who was able to afford an expensive sports car but neglected to pay his taxes.

State prosecutors have found probable cause to hale Villarica to court, based on a complaint filed by the Bureau of Internal Revenue (BIR), for his alleged failure to pay P22.4 million in taxes despite acquiring a Lamborghini, a high-end sports car, in 2007.

The DoJ, in a 10-page resolution, said that while Villarica claimed he did not earn an income from 1998 to 2009 owing to the closure of his business, the evidence would show that “he was able to purchase and fully pay for an expensive Lamborghini luxury sports car worth P26 million.”

Villarica is the sole proprietor of W Villarica Pawnshop which has branches in Caloocan, Malabon, Marikina and Bulacan.

Assistant State Prosecutor Edna Valenzuela recommended the filing of criminal charges against Villarica before the Court of Tax Appeals for violation of the National Internal Revenue Code.

The recommendation was approved by Senior Deputy State Prosecutor Miguel Gudio Jr. and Prosecutor General Claro Arellano.

For his purchase of the Lamborghini, Villarica incurred a total tax deficiency amounting to P16.2 million, inclusive of increments. He should have also paid P6.2 million in value-added tax for his pricey purchase as mandated by the Tax Code, the resolution said.