Pawnbroker chain owner wins tax evasion case

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MANILA – The Tax Court of Appeal (CTA) upheld the request for review by an owner of a chain of pawn shops calling into question his multiple tax assessments and prohibited the recovery of his alleged shortcomings.

CTA’s Third Division granted businessman William Villarica’s petition on October 21 and said it found the assessments issued by the Bureau of Internal Revenue (BIR) “to have no factual and legal basis. “.

The 31-page decision written by Associate Judge Maria Rowena Modesto-San Pedro added that the case was “simply based on the presumption that said unrecorded source of money equals revenue / sales and income.”

Villarica asked CTA to reverse the final decision on the contested assessment dated April 4, 2016 for the years 1998, 2000-2001 and 2006-2009. for an amount of PHP 112,105,286.68.

The BIR investigation arose out of an anonymous letter received on May 8, 2007 from an alleged concerned citizen who claimed that Villarica owned a number of businesses and vehicles but had not paid the correct taxes.

VIllarica said he had ceased trading since 2001 due to a dispute over property relations with his ex-wife.

From 2001 to 2009, he said he had no realized income and lived off his savings.

He also denied having signed deeds of sale relating to the purchase or sale of two luxury vehicles.

VIllarica said the ratings “are completely unfounded” and argued that the broadcasts “only contain baseless and general statements without citing any specific provision of the law that it allegedly violated”, contrary to regulatory requirements. revenues.

In ruling against the BIR, the CTA said the valuations were based on alleged purchases of luxury vehicles and investments, but “none of these transactions represent a sale, trade or gross receipts that may be subject to VAT. (value added tax). There was also no evidence of income from these alleged purchases which may be subject to income tax ”. (ANP)


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