The Bureau of Internal Revenue yesterday filed before the Department of Justice a P32.73-million tax evasion case against former Surigao del Sur congressman and dismissed Local Water Utilities Administration Chairman Prospero Pichay.
BIR Commissioner Kim Jacinto-Henares said in a press conference that they filed a criminal complaint for tax evasion against Pichay for willful attempt to evade or defeat tax and deliberate failure to file return and pay tax for taxable year 2009 in violation of Section 254 and Section 255 of the Tax Code of 1997.
Pichay’s registered address is at Marikina Green Heights Subd., Bldg. A, Unit 16, Marikina City.
He became a director of LWUA Consult Inc. and Express Savings Bank Inc.
The BIR said it found that Pichay was able to acquire real, personal and other properties in 2009 which are worth several millions of pesos.
Henares said that using the net worth method of tax investigation, it was determined that Pichay did not declare his income for taxable year 2009 after a comparison of Statements of Assets, Liabilities and Net Worth he filed as a government employee in 2008 and 2009 showed a substantial increase in net worth of around P58.5 million.
A breakdown of the increase in Pichay’s net worth for 2009 showed property acquisitions, including a residential lot in Las Pinas City, a residential house in Marikina City, Malayan Units, motor vehicles, and an airplane.
Documents submitted by LWUA showed that Pichay was in possession of large sums of cash.
Despite receipt of substantial amounts of income as shown by his acquisition of numerous properties and possession of large amounts of cash, Pichay failed to file any annual Income Tax Return and to pay the corresponding taxes due thereon for taxable year 2009.
Henares said that Pichay’s deliberate failure to file the mandated ITR for 2009 despite earning an enormous amount of income demonstrates his propensity and willful intent to evade the taxes due to the government for which he was assessed a total tax liability amounting to at least P32.73 million.
The case against Pichay is the 56th filed under the Run After Tax Evaders program of the BIR under the leadership of Henares.*PNA