BIR welcomes DOJ decision against pawnshop owner

MANILA, Philippines - The Bureau of Internal Revenue (BIR) welcomed the decision of the Department of Justice (DOJ) finding probable cause in the filing of criminal charges against pawnshop chain owner William Villarica.

Earlier this week, the Justice department found probable cause in the filing of criminal charges against Villarica for violating provisions of the country’s internal revenue code.

With the Justice department’s decision, the BIR is now preparing the filing of information before the Court of Tax Appeals (CTA).

“Even if Villarica seeks for a motion for reconsideration, the case can still proceed in the CTA. The Justice department has deputized BIR lawyers to handle the prosecution of tax evasion cases in the courts,” BIR Commissioner Kim Henares said.

Villarica owns the popular pawnshop chain W. Villarica Pawnshop which has branches in Caloocan, Malabon, Marikina and Bulacan.

The case against Villarica is among the first tax evasion cases filed by Henares upon taking over the helm of the tax agency last year.

According to the BIR, Villarica purchased a two-door Lamborghini worth P26 million in 2007 when neither he or his spouse did not make any tax payment even when his pawnshop business was still on active status.

Under the BIR’s Run After Tax Evaders (RATE) program, the BIR makes use of third party information such as the income tax filings of a supplier or buyer which it crosschecks with its own data.

This way, the agency would be able to determine if an individual or company has tax deficiency.

In the case of Villarica, the BIR used third party information from the Land Transportation Office (LTO). From the information provided by the LTO, the BIR learned that Villarica has four other vehicles in his name.