MANILA – A Filipino businessman, who owns a chain of pawnshops and drives around with a Lamborghini sports car worth $200,000 and a Ferrari, has been accused of tax evasion for allegedly failing to pay taxes for the past eight years.
The Aquino administration said the filing of the complaint against businessman William Villarica, the pawnshop tycoon, signaled the start of its campaign against the country’s tax cheats and smugglers.
Kim Henares, the chief of the Bureau of Internal Revenue (BIR), filed the criminal complaint against Villarica before the Department of Justice which promised to hasten the hearing of the case.
Justice Secretary Leila de Lima assured the case would be a top priority and would be assigned to a panel of government prosecutors specializing in tax evasion cases.
Henares accused Villarica of allegedly attempting to evade and willful failure to file income tax returns from 2002 to 2009, except for 2007 when he filed a return of zero tax payment.
And yet during these years, Henares said Villarica would be seen driving around town with a $200,000 Lamborghini sports car, a Ferrari and several late-model vehicles as she emphasized:
“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 he fails to do his one duty to the country and pay his proper taxes.”
Henares also pointed out the complaint against Villarica, who operates a chain of pawnshops bearing his name throughout the country, meant the revival of the BIR’s campaign called “Run After Tax Evaders” (Rate) which was discontinued in 2005 by the Arroyo administration.
Under the revived Rate campaign, the BIR chief said they would file every week at least one criminal complaint against suspected high-profile tax evaders and smugglers, with a vow that there would be no compromise.
Henares disclosed BIR investigators followed up a tip from a concerned citizen, which was confirmed that based on his tax records, Villarica’s total tax payments from 1998 to 2009 amounted only about $500.
In 2007, Villarica filed an income tax return but declared a zero tax payment, Henares added, citing a report from BIR investigators.
While not paying taxes, Henares said Villarica bought in 2007 a Lamborghini sports car for $200,000 as shown by a deed of sale from the Land Transportation Office.
Under the country’s National Internal Revenue Code, tax evasion and willful failure to file income tax returns carry a penalty of imprisonment of not more than 10 years.
At the same time, Secretary Cesar Purisima pointed Villarica’s case is just the first of many more cases the BIR would file in line with the Aquino administration’s campaign against tax evaders.
Purisima has direct control and supervision over the country’s two biggest revenue earners – the BIR and the Bureau of Customs which, however, have been widely perceived as among the most corrupt of government agencies along with the Department of Public Works and Highways and the Department of Defense.
Purisima reiterated that instead of imposing new taxes, the government would boost much needed revenues by improving tax administration and going after tax cheats and smugglers.
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