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.
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)
Approved for Release:
ESTELA V. SALES
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/