BIR sues trader who bought and sold P30-M Ferrari sans tax payments

The Bureau of Internal Revenue on Thursday filed a criminal complaint against a man who bought a P15-million Ferrari and later sold it for P33 million without paying any taxes.

BIR Commissioner Kim Henares said Rex Pepito Cortez, a resident of Albay, was charged with willful attempt to evade or defeat tax, and deliberate failure to file his annual income tax returns for taxable years 2013 and 2014.

The complaint against him was prompted by an information provided by a confidential informant that Cortez had bought a P15.41 million 2013 model Ferrari/FF/Coupe.

According to the Land Transportation Office in East Avenue in Quezon City, Cortez bought the luxury car on December 4, 2013. He later sold it on March 24, 2014 for P33 million to James Tiu.

A verification with Revenue District Office (RDO) No. 67, Legazpi City revealed that Cortez is not a registered business taxpayer and has no available records of any income and value added taxes filed for taxable years 2007 to 2014.

Despite the acquisition of the luxury vehicle in 2013 and revenue received from the sale of the said car, Cortez did not file any income tax return for taxable years 2013 and 2014, said the BIR.

“He’s just an employee. So iyong 2013 assessment is based on the net worth po ito. So you have all these assets and you only have this income. So you cannot justify it. So there’s income you did not report,” Henares told reporters.

Henares said even if Cortez is a “substituted filer,” which means he is an employee, he still has to file an income tax return for the P17 million net income he earned from the sale of the Ferrari.

Henares said Cortez’s tax deficiency for 2013 and 2014 was computed to be a total of P16.88 million.

Meanwhile, separate tax evasion complaints were also filed against Bulacan-based Samuel Ng Suy of Lehom Trading and New Samex Trading for owing the government P6.91 million in unpaid taxes for 2011.

AG Herrera Construction Corp in Bulacan and its president Apolonio Herrera were likewise charged for evading taxes in 2007. Her tax deficiency is P20.63 million.

Quezon City-based Luckyland Trading Corp and its president Alberto Tan - engaged in buying and selling hardware, cement, and electrical supplies - were slapped with a tax evasion complaint for incurring  tax deficiency of P24.18 million for taxable year 2006..

Lastly, Golden Rich Warehouse Inc and its president Jesus Romas —which receives commodities for storage - were found to owe the government P21.48 million for 2007. -NB, GMA News