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Tax court junks plea to halt auction of Gaw’s properties

Posted on May 27, 2016 07:24:00 PM [ bworldonline.com ]

THE Court of Tax Appeals en banc has junked the appeal of businessman Macario Lim Gaw, Jr. to stop the Bureau of Internal Revenue from auctioning off his properties to partially settle his P6.52-billion tax liabilities.

In a nine-page decision dated May 20, the CTA sitting as the full court dismissed Mr. Gaw’s petition to reverse the First Division’s July 2014 denial of the plea to nullify the Bureau of Internal Revenue’s (BIR) Apr. 29, 2014 auction sale.

The full court’s dismissal was on jurisdictional ground. It cited Rule 43, section 1 of the Rules of Court, which it said allows appeals from “judgments or final orders” of a CTA division.

The First Division’s resolutions that denied the bid to nullify the auction sale were “not final orders or judgments which dispose of the case, but merely interlocutory orders,” the en banc decision noted.

Because of this, the said orders could not be subjected to an appeal before the CTA en banc.

Mr. Gaw was slapped with several tax evasion complaints in 2010, for allegedly misdeclaring his property sales as sales of “capital assets” when these were actually sales of ordinary assets. By doing so, he paid only a 6% capital gains tax and avoiding paying a 32% income tax and a 12% value-added tax.

From 2007 to 2008, the BIR said Mr. Gaw bought 10 properties with an aggregate amount of P4.11 billion and sold them for P8.41 billion months later.

The businessman is the president of Mega Packing Corp. and Macro Liquid Petroleum Gas Co., Inc.

The Department of Justice considers Mr. Gaw’s case as one of its top 20 major cases. -- Vince Alvic Alexis F. Nonato            
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