The Bureau of Internal Revenue (BIR) today filed a complaint for tax evasion against former Rep. and dismissed Local Water Utilities Administration (LWUA) Chairman PROSPERO A. PICHAY at the Department of Justice for willful attempt to evade or defeat tax and deliberate failure to file return and to pay tax for taxable year 2009, in violation of Sec. 254 and Sec. 255 of the Tax Code of 1997, as amended.
Pichay, whose registered address is at Marikina Green Heights Subd., Bldg. A, Unit 16, Marikina City, also became a director of LWUA Consult, Inc. and Express Savings Bank, Inc.
Based on the documents submitted by LWUA, BIR discovered that Pichay was able to acquire real, personal and other properties in 2009 which are worth several millions. Using the net worth method of tax investigation, it was able to determine that Pichay did not declare his income for taxable year 2009 after a comparison of the Statements of Assets, Liabilities and Net Worth (SALNs) he filed as a government employee in 2008 and 2009 showed a substantial increase in networth of around P58.5 million.
A breakdown of the increase in his net worth for 2009 showed property acquisitions including a residential lot in Las Piñas, a residential house in Marikina, Malayan Units, motor vehicles, and an airplane. The same document also revealed he is 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 (ITR) and to pay the corresponding taxes due thereon for taxable year 2009.
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 PROPSPERO A. PICHAY is the fifty-sixth (56th) filed under the Run After Tax Evaders (RATE) program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.