Buyer of luxury cars rapped with P35.2-M tax evasion

March 2, 2012 10:24 am 

MANILA, March 1 – The Bureau of Internal Revenue (BIR) filed on Thursday before the Department of Justice (DOJ) a P35.2-million tax evasion case against a buyer of luxury cars.

In a press conference, BIR Commissioner Kim S. Jacinto-Henares said that they charged Tirson Edwin L. Gardiola for willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information in his Income Tax Return (ITR) for taxable year 2006 and for willful failure to file his ITR for taxable years 2007 to 2009, resulting to non-payment of taxes due thereon, all in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997.

The BIR investigated Gardiola for taxable years 1999-2010.

However, Gardiola refused to cooperate with the BIR by not making his books of accounts and other accounting records available for examination despite the issuance of the required Letters of Authority, Notices and even subpoena duces tecum.

During the investigation, the BIR found that Gardiola filed his Annual ITR only for taxable year 2006.

Likewise, the BIR also discovered various purchases of motor vehicles by Gardiola through documents obtained from the Land Transportation Office (LTO).

From November 2006 to July 2009, Gardiola bought a BMW 74511, Lincoln Navigator, Lexus LX470, Volkswagen Coupe, Camry 3.5Q A/T, Land Rover Range Rover 4.2 V8 S/C, Land Rover Freelander 2 2.2, Jaguar XKR 4.2 Coupe and KIA Mohave A/T.

Henares said that Gardiola did not file his ITRs for taxable years 2007 to 2009 but acquired motor vehicles in the total amount of P30.38 million in the same years.

Although Gardiola filed his ITR for 2006 showing a gross taxable income of P770,000, he paid income tax thereon in the amount of P1,856 only, which is grossly disproportionate to the amount of P4.75 million that he paid for the BMW 74511 that he bought in November 2006.

Using the Expenditure Method of tax investigation, the BIR computed Gardiola's estimated unreported income at P18.87 million, P16.40 million, P3.98 million and P11.14 million for taxable years 2006, 2007, 2008 and 2009, respectively.

Henares said that Gardiola's total estimated income tax liability was pegged at P35.20 million — P14.86 million in 2006, P11.55 million in 2007, P2.57 million in 2008, and P6.22 million in 2009.

The expenditure method states that if one's expenditures exceed his reported income for a given year and the source of the funds to make the expenditures is unexplained, such expenditures represent unreported income.

The case against Gardiola is the 93rd filed under the BIR's Run After Tax Evaders (RATE) program. (PNA)



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