Lamborghini-driving Ayala Alabang resident sued for tax evasion

The Bureau of Internal Revenue (BIR) today sued a Lamborghini-driving resident of posh Ayala Alabang for tax evasion.

In a statement, the BIR said it filed criminal charges before the Department of Justice (DOJ) against Napoleon Segui Villapando "for willful attempt to evade or defeat" tax payments for the year 2007 -- a violation of Section 255 of the National Internal Revenue Code.

A resident of 301 San Juanico St in Ayala Alabang, Muntinlupa, Villapando bought from his employer, Norsophil Metal Resources Inc, a Lamborghini 2-door Coupe sports car worth P20 million in 2007. [See Lamborghini commemorates 50th year anniversary] This even though he declared a gross income of only P225,078.60 for that year, according to BIR records.


The bureau's investigators found that Villapando failed to file any income tax return for the years 1992-2002 and 2005, declaring a combined income of P718,575.78 in 2003-2004, 2006 and 2007.

The BIR said his income for those years were withheld and remitted by his employer, indicating that Villapando earned only compensation income and thus had no capacity to acquire the luxury sports car.

"Thus, his acquisition must have been made possible by income he earned from other sources aside from his compensation as an employee," the agency said.

Based on its computation, the BIR said Villapando failed to report P19.77 million in income, thus representing an under-declaration of 8,786 percent of income.

Under Section 248 of the Tax Code, under-declaration of taxable income by more than 30 percent constitutes a prima facie case of fraud tantamount to tax evasion.

According to the BIR, Villapando owed the government P15.84 million in taxes, inclusive of surcharges and interests.

This is the bureau's 165th case under the Run After Tax Evaders (RATE) Program filed under the leadership of Commissioner Kim Jacinto-Henares.

source: interaksyon.com

10 facts on debt forgiveness on your main residence mortgage

1. AS A general rule, debt forgiveness results in taxable income.

2. You may be able to exclude debt forgiven on your principal residence under the Mortgage Forgiveness Debt Relief Act.

3. The debt must be secured by your main residence.

4. The debt must have been used to buy, build, or substantially improve your principal residence

5. Debt forgiven on second homes, rental property, business property, do not qualify for this tax relief provision (but may qualify for other tax relief).

6. Refinanced debt qualifies if proceeds are used to improve your principal residence.

7. Refinance debt proceeds used for other purposes (travel, buy a car, or pay off credit card debt) do not qualify for the exclusion.

8. The exclusion amount is limited to $2 million ($1 million for a married person filing a separate return).

9. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.

10. If your debt is reduced or eliminated, you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. The form shows the amount of debt forgiven and the fair market value of any property foreclosed. Examine Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

source: asianjournal.com

111 BIR tax evasion cases to reap P39.73B

The latest data from the Bureau of Internal Revenue shows that the BIR, being the government’s main revenue agency providing 70 percent of its income, is eyeing to collect P39.73 billion from 111 tax evasion cases filed at the Department of Justice, including those of former General Carlos Garcia and his brother in law Edgardo Yambao, and former Congressman Prospero Pichay, Jr., in order to reach its highest ever collection target of P1.066 trillion.

Of the 111 tax evasion cases, the Justice department has resolved 26 with 24 having been filed in various courts with 33 waiting for assignment or still undergoing a preliminary investigation.

Furthermore, some 52 cases have already been submitted for resolution including those of former AFP comptroller Garcia who, along with his wife Clarita, is accused of plunder and alleged to have failed to properly declare and pay taxes in 2004.

The BIR said that the general and wife earned an income of P273 million in 2004 but have a tax deficiency of P235.8 million.

Meanwhile, the BIR’s case against Yambao stemmed from his alleged failure to file his income tax returns for taxable years 1999 and from 2001 to 2005 despite his making several substantial deposits in several banks and acquiring properties of significant value.

According to the BIR, Yambao has a total income tax deficiency of P285.7 million.

Pichay, a former Congressman from Surigao and former chairman of the Local Water Utilities Administration, is said to have recorded a substantial increase in his income when he became chairman of the water utility in 2008, which he then used to acquire real estate properties and even a private airplane.

However, according to the BIR’s investigation, Pichay did not file any income tax return for taxable year 2009, when he would have been liable for P32 million. — DVM, GMA News

source: gmanetwork.com

BIR Begins Probe Into ITRs

MANILA, Philippines - The Bureau of Internal Revenue (BIR) starts today its nationwide investigation of 2011 income tax returns (ITRs) filed by individuals and corporations last April.

Revenue Commissioner Kim S. Jacinto-Henares instructed tax collectors to continue their audit work to meet their individual collection assignments for the year.

The BIR chief issued the instruction over the weekend before flying to Spain to attend the two-day meeting of the Organization for Economic Cooperation and Development (OECD) for tax administrators of member countries.

Revenue regional directors and heads of various divisions of the Large Taxpayers Service (LTS) were reluctant to open the 2011 ITRs for audit purposes.

They are waiting for the issuance of the so-called Annual Audit Program (AAP) by the top management, a practice adopted previously before an investigation can commence.

Henares said no such guideline will be issued for the year and tax examiners should continue what they have been doing for the BIR generate more funds to support President Aquino's social and economic development programs.

She said taxpayers with deficiency taxes should be required to pay additional amounts and those who deliberately falsified their tax records should be ferreted out so that they can be included in the Run-After-Tax-Evaders (RATE).

The BIR has experienced difficulties in meeting its collection targets for first four months of the year but the take was substantially higher than the actual collection for the same period last year raising P345.5 billion.

Higher fiscal authorities fixed the BIR collection goal for the year at P1.066 trillion.

source: mb.com.ph