Pawnshop owner posts P300k bail on P22M tax evasion case
MANILA, Philippines—Pawnshop owner William Villarica has posted a P300,000 bail to evade prison after the justice department charged him with a multimillion-peso tax evasion case.
In a statement Saturday, the Bureau of Internal Revenue, which filed the case against Villarica, said it learned about Villarica’s posting of bail a few days after the Department of Justice found probable cause in the tax evasion complaint against Villarica.
The justice department said it filed a formal case against Villarica with the Court of Tax Appeals after finding probable cause in the tax evasion charge by the BIR.
Citing documents from the tax court, the BIR said Villarica posted a total of P300,000 worth of bail. The bail has allowed Villarica to keep himself from getting jailed while the case is being heard in court.
Villarica, sole proprietor of the W Villarica pawnshop, is charged with a P22.4-million tax evasion case for allegedly failing to pay taxes in 2007 even if he was able to buy a Lamborghini luxury sports car worth P26 million.
Of the P22.4-million cost of the tax evasion case, P16.2 million covers the tax on luxury items as well as accumulated interests, while P6.2 million is the cost of the value added tax.
Article continues after this advertisementIt took the justice department about one year to file a case against Villarica before the CTA. The BIR filed its complaint against Villarica before the justice department in July 2010.
Article continues after this advertisementThe case against Villarica is the first “Run after Tax Evaders” (RATE) case filed by the BIR under the Aquino administration.
Under the RATE program, the BIR intends to file taxes against high-profile individuals or entities to discourage the public from evading taxes or paying inaccurate amounts of taxes.
The program is aimed at boosting tax collection by the BIR upon President Aquino’s directive for the government not to impose new taxes.
Under the President’s directive, tax collection should increase by improving tax administration, particularly tighter audit of taxpayers.
