Ferrari owner sued by BIR for tax evasion

BIR runs after owner of a luxury Italian Ferrari for alleged tax evasions in 2013 and 2014.

The bureau sued Rex Pepito Cortez, a resident of Sto. Domingo, Albay, for tax evasion of up to Php16.88 million for not paying taxes related to his purchase and disposal of a Ferrari. 

The case against Cortez stemmed from “information provided by a confidential informant that Cortez owned a Ferrari worth millions of pesos,” the BIR said. Cortez bought a brand-new 2013 model Ferrari/FF/Coupe on Dec. 4, 2013 worth P15.41 million. He subsequently sold the same car on March 24 the following year for P33 million.

According to the BIR, Cortez is not a registered business taxpayer in Legazpi City and has no available records of any income and value added taxes filed for taxable years 2007 to 2014.

“Despite the acquisition of said luxury vehicle in 2013 and revenue received from the sale of the said car, Cortezdid not file any income tax return for taxable years 2013 and 2014,” the BIR said. His tax liability amounted to Php8.38 million and Php8.5 million in 2014 respectively.