BIR files P32.7-M tax evasion raps vs Pichay

UPDATED 11:45 a.m. - The Bureau of Internal Revenue on Thursday filed a P32.73-million tax evasion complaint against dismissed Local Water Utilities Administration (LWUA) chairperson Prospero Pichay for his alleged failure to declare his income and pay the proper amount of taxes for the taxable year 2009. In its complaint filed with the Department of Justice (DOJ), the BIR said the P32.73 million in aggregate tax liabilities includes interest, surcharges, and penalties. The BIR added that Pichay did not declare his income in 2009 deliberately, resulting in a reduction of his tax liabilities that year. As of posting time, GMA News Online is still trying to reach Pichay for comment. At a news briefing at the DOJ, BIR Commissioner Kim Jacinto-Henares said the complaint stemmed from a scrutiny of Pichay's Statement of Assets, Liabilities and Networth (SALN) in 2009. Henares said Pichay has acquired millions-worth of properties in 2009, as reflected in his SALN that year. Pichay, however, did not file any income tax return (ITR) in 2009. "Using the net worth method of tax investigation, it was able to determine that Pichay did not declare his income for the taxable year 2009 after a comparison of the SALNs he filed as a government employee in 2008 and 2009 and showed a substantial increase in net worth of around P58.5 million," a BIR statement said. Pichay's supposed failure to file his ITR and pay taxes is in violation of the National Internal Revenue Code of 1997. Pichay is a perceived ally of former President Gloria Macapagal-Arroyo's administration, but Henares denied that the BIR is zeroing in on those perceived to be close to the Arroyos. "We have never been anything but fair. In fact, if you will notice, we have been prodded by various sectors several times to file cases against peoople, but we have never been influenced by all this prodding. The only time we file is we have evidence. If we are going to go with the tide of opinions, we would have filed much more than 57 cases [with the DOJ]," said Henares. Last month, the Office of the President implemented the Office of the Ombudsman's dismissal order against Pichay, who was penalized for grave misconduct for the alleged “unlawful disbursement" of P780 million in LWUA funds to invest in the bankrupt Laguna-based thrift bank Express Savings Bank Inc. (EXSBI). - VVP, GMA News