Billionaire Macario Lim Gaw Jr. was caught for tax evasion through the BIR’s Run After Tax Evaders program (RATE). The BIR filed charges through the Department of Justice (DOJ) against the billionaire for evading payment of correct income tax in 2007 and 2008, deliberate failure to supply the accurate information in his income tax return in 2008 and willful failure to file the VAT returns for taxable year 2008. Apart from criminal liability, Mr. Gaw Jr. is liable to pay the government a total of P5.5 Billion in unpaid taxes, inclusive of increments, as civil liability. The amount represents deficiencies for income tax and VAT for taxable years 2007 and 2008.
Mr. Gaw Jr. bought ten (10) lots in 2007 and 2008 in the combined amount of P 4,119,183,500.00 and sold it for P 8,419,621,441.12 eight (8) months later. He intentionally misclassified the sale of the 10 lots as a sale of “capital assets” when these where in fact ordinary assets and paid only the 6% Capital Gains Tax (CGT) amounting to P9,111,801,.68 in year 2007 and P418,746,021.11 in year 2008. Thus evading the payment of the 32% income tax and the 12% VAT due to sale of lands classified as ordinary assets.
The Billionaire is a registered One-Time Transaction (ONETT) taxpayer and local employee with principal address located at Corinthian Gardens Subdivision in Quezon City. Tax evasion charges began from the undeclared income based on the findings of BIR investigators.
This is the fifth (5th) taxpayer charged by the BIR through the RATE program this year under the direction of Commissioner Kim S. Jacinto-Henares.