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Billionaire Caught in His Own Real Estate Transactions

Billionaire Caught in His Own Real Estate Transactions
August 26, 2010
 
The Bureau of Internal Revenue (BIR), under its Run After Tax Evaders (RATE) program,  today  filed  with  the  Department  of  Justice(DOJ)  charges  against  MR. MACARIO LIM GAW, JR. (Mr. Gaw) for evading payment of correct income tax in 2007 and 2008, willful failure  to supply correct  and  accurate  information in his income tax return in 2008 and willful  failure to file VAT returns for taxable year 2008.
Mr. Gaw is a registered One-Time Transaction (ONETT) taxpayer and local employee with principal address located at #5 David St., Corinthian Gardens Subdivision, Quezon City.
 
The tax evasion charges originated from the findings of the BIR investigators that Mr. Gaw willfully underdeclared his income.
 
Further, he purchased ten (10) lots in 2007 and 2008 in the aggregate amount of P 4,119,183,500.00 and sold it for P8,419,621,441.12 eight (8) months later. 
 
Mr. Gaw deliberately misclassified the sale of the 10 lots as a sale of  "capital assets" when these are undoubtedly sales of ordinary assets  and paid only the 6% Capital Gains Tax (CGT) amounting to P9,111,801.69 (2007) and P418,746,021.11 (2008) to evade the payment of the 32% Income Tax and the 12% VAT due to sale of lands classified as ordinary assets.
 
Aside from criminal liability, Mr. Gaw is being held liable to pay the government a total of P 5.5 Billion in unpaid taxes, inclusive of increments, as civil liability. The said amount represents deficiencies for  income tax and VAT for taxable years 2007 and 2008. 
 
Mr. Gaw is the fifth (5th) taxpayer charged by the BIR under its Run After Tax Evaders (RATE) program this year under the leadership of Commissioner Kim S. Jacinto-Henares. (mldn) 
                           
 
(Original Signed)
Approved for Release:    

ESTELA V. SALES 
Deputy Commissioner, 
Legal and Inspection Group (LIG)

This is a sample case for a successful Run After Tax Evaders (RATE) program of the BIR in the Philippines. Source: http://www.bir.gov.ph/
 

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"Billionaire Caught in His Own Real Estate Transactions" was written by under the Philippine Government category. It has been read 2466 times and generated 0 comments. The article was created on and updated on 06 September 2010.
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