Fake CAR

On June 16, 2023, the Presidential Communications Office reported that the BIR offices of Pampanga had filed criminal charges against the seller and Buyer of parcels of land for using a fake BIR Certificate Authorizing Registration (CAR). The seller and the Buyer now face as much as ten years in prison for non-payment of taxes and six years for falsifying documents.

Interesting Facts:

+ The case was only filed 8 years after the transaction.

+ The supposed amounts needed to be paid were 600K for Capital Gains and 150K for Doc Stamp.

+ How did the BIR find out? They received "confidential information."

+ BOTH the seller and the Buyer were implicated in the crime.

How were they able to falsify a CAR?

JPRE: Someone once told me that certain individuals got hold of unused BIR CAR forms. Thus, they simply have to fill in the information and forge the signature.

Lessons:

1. Think twice before trying "creative ways" to skip paying taxes. Is Php750,000 worth spending 16 years in jail?

2. It doesn't mean that if the Buyer got a new title issued in his name, he was able to get away with the crime.

TAKE NOTE: The statute of limitations state that the BIR has ten years to file a case **FROM THE DISCOVERY**. This means that assessments may be made DECADES AFTER THE TRANSACTION because of fraud/failure to pay.

3. It just takes ONE (disgruntled?) person to report the wrongdoing. That person may not even be involved in the original transaction but who knows about it. Since the act was reported only after 8 years, it suggests that an event triggered the informant to report it. Perhaps, someone asked for additional money, and reported it when he didn't get it?

3. I'll say it again: "BOTH the seller and the buyer were implicated in the crime." I don't think the usual clauses written in the DOAS (i.e., stating the SELLER shall pay for all taxes) will emancipate the Buyer from any wrongdoing. Actually, even if the Buyer got away with it, the mere headache of being implicated in the crime should be more than enough to deter anyone from resorting to these acts. Mind you, their names were publicized.

#fakecar