BIR files tax evasion rap vs Ampatuan lawyer

MANILA, Philippines - The Bureau of Internal Revenue (BIR) filed yesterday the first tax evasion case for the year against lawyer Redemberto Villanueva, a defense counsel of the Ampatuan clan in the Maguindanao massacre trial.

Another tax evasion case has been filed against gold trader Teofilo Oraa.

BIR Commissioner Kim Henares said the two cases filed at the Department of Justice (DOJ) were worth P768.6 million.

Both Villanueva and Oraa were charged with violation of Sections 254 and 255 of the National Internal Revenue Code, or for attempting to evade taxes and failing to file correct and accurate tax returns.

Henares said that the BIR’s investigation showed that Villanueva, a lawyer based in Quezon City, had unreported income of at least P59.12 million in 2010 and P10.39 million in 2011.

BIR computed Villanueva’s income based on the expenditure method. Under this method, spending in excess of one’s income in a given year that cannot be explained is considered as unreported income.

A BIR investigating team found that Villanueva bought properties in the upscale Dasmariñas Village in Makati City and a parking space in Eisenhower Condominium in San Juan City in 2010 amounting to P59.12 million.

He bought more properties in 2011, including a condominium unit in Eastwood Lafayette in Quezon City and another unit in Eisenhower Condominium in San Juan worth P10.39 million.

Using the expenditure method, the BIR found that Villanueva’s unreported income amounted to P58.46 million in 2010 and P4.9 million in 2011.

The BIR computed his income for 2010 at P59.12 million and his income for 2011 at P10.39 million but he declared only P527,626.67 and P5.49 million, respectively.

The BIR considers it prima facie evidence of fraud if the difference between his declared income and the unreported income is over 30 percent.

Henares said Villanueva’s tax liability is P36.93 million for the two-year period, inclusive of surcharge and penalties.

The second respondent, businessman Oraa, meanwhile, is a gold trader who sold P1.12-billion worth of gold to the Bangko Sentral ng Pilipinas in 2009 but did not declare this in his income tax return, the BIR said.

According to the complaint filed by the BIR, Oraa declared only P634,227 in sales in his income tax return for 2009, with the disparity between the actual income and declared income over 30 percent.

The BIR said Oraa’s deficiency tax liability is P731.67 million for 2009, inclusive of surcharge, interest and penalties.

If found guilty, the two respondents face a fine of P30,000 to P100,000 and imprisonment of two to four years.

Those found guilty of failing to file the proper returns also face a fine of at least P10,000 and imprisonment of one to 10 years, the BIR said.