BIR today filed with the Department of Justice (DOJ) a complaint for tax evasion against Retired Major General Carlos F. Garcia and Spouse Clarita D. Garcia (Spouses Garcia) for willfully attempting to evade or defeat tax and for willfully failing to file their Income Tax Return (ITR) for taxable year 2004.
The case against the Spouses Garcia was the third filed against them. The first two cases of similar nature involving taxable years 2002 and 2003 are pending with the DOJ.
Investigation by the BIR of Spouses Garcia for probable tax evasion cases disclosed that they failed to file their ITR for 2004.
They also failed to declare with the BIR income earned in 2004 amounting to P273,235,534.08 which they used to acquire properties and to make deposits in several bank accounts and financial instruments.
Details of the investigation showed that in 2004, Retired General Garcia, by himself or through his children, who were minors with no visible means of income, deposited P102,765,849.35 in several bank accounts and financial instruments.
In the same year, Retired General Garcia, through his son Ian Carl, who was then a minor with no visible means of income, also purchased a property in Iloilo for P459,609.00.
Likewise in 2004, his wife Clarita or through her children, who were minors with no visible means of income, deposited in several bank accounts and financial instruments P170,010,075.73.
After computation, the total income tax liability of the couple was pegged at P235,831,205.44, inclusive of increments, broken down as follows: P89,064,648.01 – Gen. Garcia; and P146,766,557.43 – Spouse Clarita.
The case against SPOUSES RETIRED GENERAL CARLOS GARCIA and CLARITA D. GARCIA is the thirty-first (31st) filed under the Run After Tax Evaders (RATE) Program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares